Decision Tree Analysis (DTA) is one of the tools that is used to account for uncertainty and encapsulates the later decisions by the management. It is useful for analyzing sequential investment decisions at discrete points of time. In DTA, the…
With the recent rejection of Novartis? patent hitting the headlines India?s generic drug market is back in the news, this time Mumbai-based Glenmark Pharmaceuticals Ltd. is the target and Merck (MSD) is looking to sue over patent-infringement. Glenmark recently announced two anti-diabetic…
The Global Polio Eradication Initiative received a considerable boost towards achieving their funding target when the Gates? Foundation pledged$1.8bn USD towards eradicating Polio. The commitment, announced at the Global Vaccine Summit in Abu Dhabi, brings the total funds raised to $4bn,…
Hospira has announced yet another recall, this time related to copper particles found in sodium chloride injections that could potentially cause copper toxicity. Hospira, the largest US provider of sterile injectables has invested more than $375mn to upgrade its system, yet it…
April Fool?s day was anything but a joke for Novartis as India?s Supreme Court dismissed its application for patent protection of its Leukaemia and gastrointestinal cancer drug “Glivec” in India?s lucrative $13 billion-a-year drugs market. The ruling dealt a significant…
It is true that accounting is inconsistent in dealing with capital expenditures and operating expenditures of manufacturing firms vs technology or R&D based firms. The operating expenditures are designed to generate benefits in the current year whereas capital expenditures are…
How many times have we seen this designation in the corporate world? Does it ring any bell to you? Before we delve into this discussion, let us understand the background of why we need Board of Directors. We, as a…
Every company has two types of assets that creates value –1. Existing assets 2. Growth assets. For many matured companies such as Merck (NYSE: MRK),most of the value comes from the existing assets i.e. existing products, brands etc. For many…
Blame it on the bias during the valuation process, one tends to favor its value depending on which side of the negotiation table he or she is. One of the tools used to push the value up or down is…
The assumptions for valuations are so subjective that you would find myriad views on that. However, it is also true that those assumptions should be well backed with good evidence or rationale. Recently, I had a discussion on real options…