Finance of small bio-pharmaceutical industry in Finland: Descriptive analysis

Arbeitspapier

This study investigates the capital and ownership structures of small and medium-sized pharmaceutical-related biotechnology firms (bio-pharmaceutical companies) in Finland. These structures are also analyzed taking into account general characteristics and intangible assets of the business activities in the industry. Relatively young companies are typically owned by persons that are active in business, private venture capital companies, and government institutions. Older firms are mostly owned by other non-financial companies. The major capital loan supplier has been TEKES, the National Technology Agency of Finland. Equity finance from private venture capital companies and governmental sources has supported growth in research and development activities in the companies examined. However, the companies owned mostly by non-financial companies have been able to generate relatively high sales. These firms are also anticipated to have the highest sales potential over the next 5 years. The results here are contrasted with explanations of capital structure found in the literature. No single theory can by itself explain the capital and ownership patterns within Finnish bio-pharmaceutical companies. Instead, the literature suggests many explanations for the observed ownership patterns. For example, different patterns can be related to the owners’ willingness to monitor the managers and support activities with high earning prospects. – Biotechnology ; capital structure ; finance ; intangible assets ; pharmaceutical industry

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ETLA Discussion Papers ; No. 888

Classification and Topics

• Classification: Wirtschaft
• Subject: aineeton varallisuus ; biotekniikka ; lääketeollisuus ; pääomasijoitukset ; Pharmazeutische Industrie ; Klein- und Mittelunternehmen ; Unternehmensfinanzierung ; Finnland

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Hermans, Raine
• Event: Veröffentlichung
• (who): The Research Institute of the Finnish Economy (ETLA)
• (where): Helsinki
• (when): 2004

Further information

• Handle: http://hdl.handle.net/10419/63675
• Last update: 10.03.2025, 11:43 AM CET