• Apply relevant theories of control and finance to managerial problems in both entrepreneurial and established firms in the biotech/pharma sector.
• Analyze how management control and finance affects internal operations and external relationships.
• Discuss appropriate structures and mechanisms for controlling and financing innovation and product development.

Course Content

Bio ventures and pharmaceutical companies rely heavily on strategic relationships to external stakeholders such as large costumer organizations, partners for out-sourced R&D, suppliers of venture capital etc. The development of new drugs and medico technical products is highly uncertain and development times are lengthy. Their internal operations (largely research) are difficult to manage and control by conventional approaches, and managing cash flows and portfolios of projects is challenging. These characteristics tie together a set of closely related issues in the financing and management of bio ventures and pharmaceutical companies. This course addresses these interdependent issues by teaching key concepts and tools of finance and control.

Topics in control focus on key issues of decision making and control for start-ups and established firms. Course components include the development of management accounting and control in the lifecycle of a start-up, control and incentives in product development processes, cost accounting and budgeting.

The finance part of the course deals with issues in forecasting and planning cash flows, the calculation of present and real option values of projects, relationships to VC, BA and Stock markets and how to secure funding for start-ups.

Teaching and learning Methods

The course will mix lectures with casework and simulations.

Learning Outcome

The course enables students to analyze how their internal operations and external relationships can be managed an environment characterized by high uncertainty and where the development of the firm is dependent on both creative processes and the ability to handle relationships to stakeholders such as venture capitalists, stock markets, suppliers and customers. Students learn to design appropriate solutions for controlling innovation and product development. They learn how to plan cash flows, secure funding and manage portfolios of bio projects. They become capable at identifying opportunities and pitfalls of different finance and control mechanisms, to understand how they change over the life-cycle of the firm, and to use the acquired knowledge to build and successfully develop innovative enterprises.