Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Mylan Pharm is investing in a new cancer treatment gene therapy. They have projected the cost of final clinical trials to be $95,000,000 (now) and
Mylan Pharm is investing in a new cancer treatment gene therapy. They have projected the cost of final clinical trials to be $95,000,000 (now) and will take 3 years to complete then they have to get FDA approval which will take to year 5. The regulatory department has given the following projections and you have to determine if it should proceed with an 6% MARR? 40% chance of failure - No Revenue 45% chance of approval by FDA, 5 years from now, Revenue $23,000,000/ year for years 5-15 after approval 15% chance wider approval by FDA, 5 years from now, Revenue $30,000,000/year for years 5-15 -$4,320.000 No $2,229,920 Yes -$2,229,920 No $3,521,000 Yes
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started