John Mason, the principle on Oldwell Partners, faced with the decision whether or not to invest in DiagnoFirst, molecular firm diagnosis. Key product DiagnoFirst had a genetic test, which revealed a number of prostate cancer patients at high risk of clinical progression and death. DiagnoFirst filed patent applications in the U.S. and the EU, for a sequence of 40 genes, a new methodology for the amplification of the gene, and the specific mechanics of genetic tests. Solution Mason invest DiagnoFirst was partly based on the probability of obtaining patents and in part on expected future cash flows the business under different scenarios. This case is the subject of intellectual property in the field of science, international differences in patent law, and the decision-making process of venture capital in biotechnology deals. "Hide
by Robert C. Pozen, Rukmini Balu Source: Harvard Business School 18 pages. Publication Date: May 26, 2009. Prod. #: 309112-PDF-ENG
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