Biotechnology

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There is also a calculation in which researchers will use to determine the number of patients needed for phase 3 clinical trials. This calculation of the proper sample size is necessary to assure adequate levels of significance and power to detect differences of clinical interest (see below).
Depending on how large the sample size of the phase 3 clinical trial, there are separate statistical analyses for each sample size. With one sample and a large sample size, a Z test is often used. With a smaller sample size of one sample, an exact binomial confidence interval is used, while a chi-squared test would test pre- and post- treatment experiments.

Phase 4 only occurs and is only applicable to those drugs that have been approved by the FDA. It experiments using several thousand volunteers who have the disease or condition and the main purpose is to discover any additional safety and efficacy issues.
Financial Performance
With a growing industry, biotechnology also opens up a whole new segment in making a profit and at the same time producing a drug or platform that accelerates our technology. As one can imagine, the biotechnology industry prompts companies to operate differently than other companies in say, the financial services industry.
General Financial Analysis
All companies strive to find its success in both its products, services, and/or its financial statements. There are a number of ratios and line items within the balance sheet, income statement, etc. to help investors and speculators understand what degree of success the companies are experiencing. Valuations for the biotechnology industry is especially different and often times qualitative in the assumptions portion. When the biotechnology industry was first introdu...

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...iables are already contained in the equation. Such holds true with the Black-Scholes equation (indicated below). This is well suited for simple options with input parameters. However, there are still disadvantages of having a closed end formula. With closed end solutions, there is a lack of possible scenarios making forecasting difficult. A simulation of the future is also a valuable tool for deciding the prospects for biotech projects. This technique is based off of the assumption of volatility, which inevitably determines the probability distribution of the cash flows. A higher volatility will give more extreme scenarios. Lattices or trees are used to model future scenarios. Unlike the formula approach like the Black-Scholes model, lattices can range from simple choice trees to complicated multinomial trees (hence, the binomial, trinomial, polynomial mathematics).

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