CNS is a small biotech company. The founder of the firm is deciding if it is worth applying for phase I approval which will allow the company to continue its research.
He must determine the value of the research. Using the conventional DCF valuation method, he's not sure if this captures the research’s total value. He must choose between either the Black Scholes or binomial model in order to determine the worth more correctly.
Publication Date: 03/04/2004
This is just an excerpt. This case is about Finance