Evidence-based financial/economic valuation of pharmaceutical production laboratories

The end goal of this article was to review pharmaceutical laboratories through a financial/economic valuation, from the financial literature, that allowed us to obtain a more objective value when applying the discounted cash flow (DCF) and real option valuation methods. This was non-experimental field research focused on two laboratories-that do not trade publicly-labeled as Laboratories A & B. The criteria and valuation methods of these have been estimated with little rigor. The first method's estimate, with a pessimistic scenario, resulted in a lesser level of debt. The real option valuation (base scenario) determined it was feasible to differ a project to produce a new drug for Laboratory A, before the results from the traditional method, which recommended not to produce it at this current point in time.