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Market Strategies for a Tobacco Bio-Pharming Application: The Case of Gaucher's Disease Treatment

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  • Kostandini, Genti
  • Mills, Bradford F.

Abstract

Small firms developing biotechnology applications often focus on establishing intellectual property rights, which can then be sold to more established firms with existing market chains. This paper explores the expected 'Buyout' price and economic surplus changes for an emerging bio-pharming application with transgenic tobacco. The results suggest a 'Buyout' price of about $1.75 billion. Yet despite this potentially large payout to the innovating firm, consumers also see significant surplus gains.

Suggested Citation

  • Kostandini, Genti & Mills, Bradford F., 2005. "Market Strategies for a Tobacco Bio-Pharming Application: The Case of Gaucher's Disease Treatment," 2005 Annual meeting, July 24-27, Providence, RI 19325, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea05:19325
    DOI: 10.22004/ag.econ.19325
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    References listed on IDEAS

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    1. Giancarlo Moschini & Harvey Lapan, 1997. "Intellectual Property Rights and the Welfare Effects of Agricultural R&D," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1229-1242.
    2. Roger N. Rose, 1980. "Supply Shifts and Research Benefits: Comment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(4), pages 834-837.
    3. Kostandini, Genti & Mills, Bradford F. & Norton, George W., 2004. "Potential Impacts Of Pharmaceutical Uses Of Transgenic Tobacco: The Case Of Human Serum Albumin (Hsa)," 2004 Annual meeting, August 1-4, Denver, CO 20289, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. José Benjamin Falck-Zepeda & Greg Traxler & Robert G. Nelson, 2000. "Surplus Distribution from the Introduction of a Biotechnology Innovation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 360-369.
    5. Mingxia Zhang, 1997. "The Effects of Imperfect Competition on the Size and Distribution of Research Benefits," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1252-1265.
    6. Qaim, Matin, 2003. "Bt Cotton in India: Field Trial Results and Economic Projections," World Development, Elsevier, vol. 31(12), pages 2115-2127, December.
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