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 The leading web portal for pharmacy resources, news, education and careers July 24, 2017
Pharmacy Choice - Pharmaceutical News - Study Findings from Bangor University Provide New Insights into Finance (Profitability and Market Value of Orphan Drug Companies: A Retrospective,... - July 24, 2017

Pharmacy News Article

 3/25/17 - Study Findings from Bangor University Provide New Insights into Finance (Profitability and Market Value of Orphan Drug Companies: A Retrospective,...

Study Findings from Bangor University Provide New Insights into Finance (Profitability and Market Value of Orphan Drug Companies: A Retrospective, Propensity-Matched Case-Control Study)

By a News Reporter-Staff News Editor at Investment Weekly News Researchers detail new data in Finance. According to news reporting from Bangor, United Kingdom, by VerticalNews journalists, research stated, "Concerns about the high cost of orphan drugs has led to questions being asked about the generosity of the incentives for development, and associated company profits. We conducted a retrospective, propensity score matched study of publicly-listed orphan companies."

Financial support for this research came from Health and Care Research Wales.

The news correspondents obtained a quote from the research from Bangor University, "Cases were defined as holders of orphan drug market authorisation in Europe or the USA between 2000-12. Control companies were selected based on their propensity for being orphan drug market authorisation holders. We applied system General Method of Moments to test whether companies with orphan drug market authorization are valued higher, as measured by the Tobin's Q and market to book value ratios, and are more profitable based on return on assets, than non-orphan drug companies. 86 companies with orphan drug approvals in European (4), USA (61) or both (21) markets were matched with 258 controls. Following adjustment, orphan drug market authorization holders have a 9.6% (95% confidence interval, 0.6% to 18.7%) higher return on assets than non-orphan drug companies; Tobin's Q was higher by 9.9% (1.0% to 19.7%); market to book value by 15.7% (3.1% to 30.0%) and operating profit by 516% (CI 19.8% to 1011%). For each additional orphan drug sold, return on assets increased by 11.1% (0.6% to 21.3%), Tobin's Q by 2.7% (0.2% to 5.2%), and market to book value ratio by 5.8% (0.7% to 10.9%)."

According to the news reporters, the research concluded: "Publicly listed pharmaceutical companies that are orphan drug market authorization holders are associated with higher market value and greater profits than companies not producing treatments for rare diseases."

For more information on this research see: Profitability and Market Value of Orphan Drug Companies: A Retrospective, Propensity-Matched Case-Control Study. Plos One, 2016;11(10):e0164681. (Public Library of Science - www.plos.org; Plos One - www.plosone.org)

Our news journalists report that additional information may be obtained by contacting D.A. Hughes, Centre for Health Economics and Medicines Evaluation, Bangor University, Ardudwy, Holyhead Road, Bangor, LL57 2PZ, UK.

Keywords for this news article include: Bangor, Europe, Finance, United Kingdom, Drugs and Therapies.

Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2017, NewsRx LLC



(c) 2017 NewsRx LLC

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