Growth and profitability in small privately held biotech firms: preliminary findings
✍ Scribed by Malin Brännback; Alan Carsrud; Maija Renko; Ralf Östermark; Jaana Aaltonen; Niklas Kiviluoto
- Publisher
- Elsevier
- Year
- 2009
- Tongue
- English
- Weight
- 287 KB
- Volume
- 25
- Category
- Article
- ISSN
- 1871-6784
No coin nor oath required. For personal study only.
✦ Synopsis
This paper reports on preliminary findings on a study of the relationship of growth and profitability among small privately held Finnish Life Science firms. Previous research results concerning growth and profitability are mixed, ranging from strongly positive to a negative relationship. The conventional wisdom states that growth is a prerequisite for profitability. Our results suggest that the reverse is the case. A high profitability-low growth biotech firm is more probably to make the transition to high profitability-high growth than a firm that starts off with low profitability and high growth.