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Bio-pharma: A financialized business model

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  • Andersson, Tord
  • Gleadle, Pauline
  • Haslam, Colin
  • Tsitsianis, Nick

Abstract

In this paper, we construct a complementary financialized business model of SME bio-pharma that reveals how the product innovation and development process conjoins with speculative forces in capital markets. To conceptualise this descriptive business model we employ three organising elements: narratives about pipeline progress that may (or may not) lead to additional funding from equity investors or other investing partners, capital market conditions that impact on the supply of funding and market valuations and the variable motivations of equity investors who are not in a development marathon but a relay race anxious to pass on ownership and extract higher returns on invested capital through realised market value. Bio-pharmas are, in effect, constituted as investment portfolios of innovations where products in pipeline and firms trade for shareholder value. In this speculative innovation, capital market liquidity business model complementary narratives and favourable capital market conditions are required to keep it all going.

Suggested Citation

  • Andersson, Tord & Gleadle, Pauline & Haslam, Colin & Tsitsianis, Nick, 2010. "Bio-pharma: A financialized business model," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 21(7), pages 631-641.
    • Handle: RePEc:eee:crpeac:v:21:y:2010:i:7:p:631-641
    DOI: 10.1016/j.cpa.2010.06.006
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    References listed on IDEAS

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    Cited by:

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    3. Gleadle, Pauline & Parris, Stuart & Shipman, Alan & Simonetti, Roberto, 2014. "Restructuring and innovation in pharmaceuticals and biotechs: The impact of financialisation," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 25(1), pages 67-77.
    4. Morales, Jérémy & Sponem, Samuel, 2017. "You too can have a critical perspective! 25 years of Critical Perspectives on Accounting," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 43(C), pages 149-166.
    5. Goulding, Richard & Haslam, Colin & Leaver, Adam & Silver, Jonathan, 2024. "A ‘Distributional Apparatus’ for real estate: Fair value accounting and the assetization of UK property," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 99(C).
    6. Graaf, Johan & Kraus, Kalle & Strömsten, Torkel, 2022. "The problematics of financialization – On the important (but neglected) horizontal axis of organizational action," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 89(C).
    7. Bay, Charlotta & Catasús, Bino & Johed, Gustav, 2014. "Situating financial literacy," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 25(1), pages 36-45.
    8. Froud, Julie & Tischer, Daniel & Williams, Karel, 2017. "It is the business model… Reframing the problems of UK retail banking," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 42(C), pages 1-19.
    9. Nadya Wells & Vinh-Kim Nguyen & Stephan Harbarth, 2024. "Novel insights from financial analysis of the failure to commercialise plazomicin: Implications for the antibiotic investment ecosystem," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-13, December.
    10. Befort, N., 2020. "Going beyond definitions to understand tensions within the bioeconomy: The contribution of sociotechnical regimes to contested fields," Technological Forecasting and Social Change, Elsevier, vol. 153(C).
    11. Haslam, Colin & Tsitsianis, Nick & Theodosopoulos, Grigorios & Lee, Edward, 2018. "Accounting for voluntary hospices in England: A business model perspective," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 54(C), pages 27-40.

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