Contract Theory: Impact on Biopharmaceutical Alliance Structure and Performance

Published Online:https://doi.org/10.1287/msom.2017.0617

References

  • Aggarwal VA, Hsu DH (2013) Entrepreneurial exits and innovation. Management Sci. 60(4):867–887.LinkGoogle Scholar
  • Aitken M, Kleinrock M, Pennente K, Lyle J, Nass D, Caskey L (2016) Medicines use and spending in the U.S. Technical report, QuintilesIMS Institute, Durham, NC.Google Scholar
  • Akerlof GA (1970) The market for “lemons”: Quality uncertainty and the market mechanism. Quart. J. Econom. 84(3):488–500.CrossrefGoogle Scholar
  • Anand BN, Khanna T (2000) Do firms learn to create value? The case of alliances. Strategic Management J. 21(3):295–315.CrossrefGoogle Scholar
  • Azoulay P, Graff ZJS, Manso G (2011) Incentives and creativity: Evidence from the academic life sciences. RAND J. Econom. 42(3):527–554.CrossrefGoogle Scholar
  • Azoulay P, Stuart T, Wang Y (2013) Matthew: Effect or fable? Management Sci. 60(1):92–109.LinkGoogle Scholar
  • Babler SD (2010) Pharmaceutical and Biomedical Project Management in a Changing Global Environment. Wiley Series on Technologies for the Pharmaceutical Industry (John Wiley & Sons, Hoboken, NJ).CrossrefGoogle Scholar
  • Bhaskaran SR, Krishnan V (2009) Effort, revenue, and cost sharing mechanisms for collaborative new product development. Management Sci. 55(7):1152–1169.LinkGoogle Scholar
  • Bhattacharya S, Gaba V, Hasija S (2015) A comparison of milestone-based and buyout options contracts for coordinating R&D partnerships. Management Sci. 61(5):963–978.LinkGoogle Scholar
  • Blackwell M, Iacus S, King G, Porro G (2009) CEM: Coarsened exact matching in Stata. Stata J. 9(4):524–546.CrossrefGoogle Scholar
  • Bogdan B, Villiger R (2008) Valuation in Life Sciences (Springer, Berlin).CrossrefGoogle Scholar
  • Bolton P, Dewatripont M (2005) Contract Theory (MIT Press, Cambridge, MA).Google Scholar
  • Brambor T, Clark WR, Golder M (2006) Understanding interaction models: Improving empirical analyses. Political Anal. 14(1): 63–82.CrossrefGoogle Scholar
  • Cawley J, Philipson T (1999) An empirical examination of information barriers to trade in insurance. Amer. Econom. Rev. 89(4):827–846.CrossrefGoogle Scholar
  • Cohen A, Siegelman P (2010) Testing for adverse selection in insurance markets. J. Risk Insurance 77(1):39–84.CrossrefGoogle Scholar
  • Colombo MG (2003) Alliance form: A test of the contractual and competence perspectives. Strategic Management J. 24(12):1209–1229.CrossrefGoogle Scholar
  • Crama P, De Reyck B, Degraeve Z (2008) Milestone payments or royalties? Contract design for R&D licensing. Oper. Res. 56(6):1539–1552.LinkGoogle Scholar
  • Crama P, De Reyck B, Taneri N (2017) Licensing contracts: Control rights, options, and timing. Management Sci. 63(4):1131–1149.LinkGoogle Scholar
  • Czerepak EA, Ryser S (2008) Drug approvals and failures: Implications for alliances. Nature Rev. Drug Discovery 7(3):197–198.CrossrefGoogle Scholar
  • DiMasi JA (2001) Risks in new drug development: Approval success rates for investigational drugs. Clinical Pharmacology Therapeutics 69(5):297–307.CrossrefGoogle Scholar
  • Doz YL, Hamel G (1998) Alliance Advantage: The Art of Creating Value Through Partnering (Harvard Business School Press, Boston).Google Scholar
  • Ederer F, Manso G (2013) Is pay for performance detrimental to innovation? Management Sci. 59(7):1496–1513.LinkGoogle Scholar
  • Elton EJ, Gruber MJ (1977) Risk reduction and portfolio size: An analytical solution. J. Bus. 50(4):415–437.CrossrefGoogle Scholar
  • Feldman ER, Amit R, Villalonga B (2016) Corporate divestitures and family control. Strategic Management J. 37(3):429–446.CrossrefGoogle Scholar
  • Finkelstein A, McGarry K (2006) Multiple dimensions of private information: Evidence from the long-term care insurance market. Amer. Econom. Rev. 96(4):938–958.CrossrefGoogle Scholar
  • Geyskens I, Steenkamp JBEM, Kumar N (2006) Make, buy, or ally: A transaction cost theory meta-analysis. Acad. Management J. 49(3):519–543.CrossrefGoogle Scholar
  • Grogan K (2010) Pfizer ends Celldex cancer vaccine pact. PharmaTimes (September 6), http://www.pharmatimes.com/news/pfizer_ends_celldex_cancer_vaccine_pact_982492.Google Scholar
  • Grossman SJ, Hart OD (1986) The costs and benefits of ownership: A theory of vertical and lateral integration. J. Political Econom. 94(4):691–719.CrossrefGoogle Scholar
  • Hallen BL, Bingham CB, Cohen S (2014) Do accelerators accelerate? A study of venture accelerators as a path to success? Acad. Management Proc. 2014(1):12955.CrossrefGoogle Scholar
  • Handley SM (2016) How governance misalignment and outsourcing capability impact performance. Production Oper. Management 26(1):134–155.CrossrefGoogle Scholar
  • Hart O (1995) Firms, Contracts, and Financial Structure (Clarendon Press, Oxford, UK).CrossrefGoogle Scholar
  • Hoang H, Rothaermel FT (2005) The effect of general and partner-specific alliance experience on joint R&D project performance. Acad. Management J. 48(2):332–345.CrossrefGoogle Scholar
  • Iacus SM, King G, Porro G (2011) Multivariate matching methods that are monotonic imbalance bounding. J. Amer. Statist. Assoc. 106(493):345–361.CrossrefGoogle Scholar
  • Iacus SM, King G, Porro G (2012) Causal inference without balance checking: Coarsened exact matching. Political Anal. 20(1):1–24.CrossrefGoogle Scholar
  • Ionis Pharmaceuticals (2017) Pharmaceutical partners. Accessed May 29, 2017, http://www.ionispharma.com/rd/strategic-alliances/pharmaceutical-partners/.Google Scholar
  • Jensen R, Thursby M (2001) Proofs and prototypes for sale: The licensing of university inventions. Amer. Econom. Rev. 91(1): 240–259.CrossrefGoogle Scholar
  • Kennedy P (2008) A Guide to Econometrics (Blackwell Publishing, Oxford, UK).Google Scholar
  • Kim JW, King BG (2014) Seeing stars: Matthew effects and status bias in major league baseball umpiring. Management Sci. 60(11): 2619–2644.LinkGoogle Scholar
  • Laffont J-J, Martimort D (2009) The Theory of Incentives: The Principal-Agent Model (Princeton University Press, Princeton, NJ).CrossrefGoogle Scholar
  • Laffont J-J, Matoussi MS (1995) Moral hazard, financial constraints and sharecropping in El Oulja. Rev. Econom. Stud. 62(3):381–399.CrossrefGoogle Scholar
  • Lazear EP (2000) The power of incentives. Amer. Econom. Rev. 90(2):410–414.CrossrefGoogle Scholar
  • Leiblein MJ, Reuer JJ, Dalsace F (2002) Do make or buy decisions matter? The influence of organizational governance on technological performance. Strategic Management J. 23(9):817–833.CrossrefGoogle Scholar
  • Lerner J, Wulf J (2007) Innovation and incentives: Evidence from corporate R&D. Rev. Econom. Statist. 89(4):634–644.CrossrefGoogle Scholar
  • MacCormack A, Mishra A (2015) Managing the performance trade-offs from partner integration: Implications of contract choice in R&D projects. Production Oper. Management 24(10):1552–1569.CrossrefGoogle Scholar
  • McFadden D, Train K (2000) Mixed MNL models for discrete response. J. Appl. Econometrics 15(5):447–470.CrossrefGoogle Scholar
  • Menzel GE, Xanthopoulos KG (2012) The art of the alliance. Nature Biotechnology 30(4):313–315.CrossrefGoogle Scholar
  • Morgan SL, Winship C (2014) Counterfactuals and Causal Inference (Cambridge University Press, New York).CrossrefGoogle Scholar
  • Obermeyer Z, Makar M, Abujaber S, Dominici F, Block S, Cutler DM (2014) Association between the Medicare hospice benefit and health care utilization and costs for patients with poor-prognosis cancer. J. Amer. Medical Assoc. 312(18):1888–1896.CrossrefGoogle Scholar
  • Oxley JE, Sampson RC (2004) The scope and governance of international R&D alliances. Strategic Management J. 25(8–9):723–749.CrossrefGoogle Scholar
  • PMLiVE (2016) Top 50 pharmaceutical products by global sales. Accessed July 8, 2016, http://www.pmlive.com/top_pharma_list/Top_50_pharmaceutical_products_by_global_sales.Google Scholar
  • Salanié B (2005) The Economics of Contracts: A Primer (MIT Press, Cambridge, MA).Google Scholar
  • Sampson R (2004) The cost of misaligned governance in R&D alliances. J. Law, Econom., Organ. 20(2):484–526.CrossrefGoogle Scholar
  • Savva N, Scholtes S (2014) Opt-out options in new product co-development partnerships. Production Oper. Management 23(8): 1370–1386.CrossrefGoogle Scholar
  • Savva N, Taneri N (2015) The role of equity royalty and fixed fees in university technology transfer. Management Sci. 61(6):1323–1343.LinkGoogle Scholar
  • Schilling MA, Phelps CC (2007) Interfirm collaboration networks: The impact of large-scale network structure on firm innovation. Management Sci. 53(7):1113–1126.LinkGoogle Scholar
  • Spence M (1973) Job market signaling. Quart. J. Econom. 87(3):355–374.CrossrefGoogle Scholar
  • Thomson Reuters Recap (2013) Recap therapeutic area insights—Oncology deal making and development trends, 2008–2012. Accessed May 29, 2017, http://recap.com/sites/rc/files/pdf/oncology-deal-making-development-trends-report-factsheet.pdf.Google Scholar
  • Villalonga B, McGahan AM (2005) The choice among acquisitions, alliances, and divestitures. Strategic Management J. 26(13):1183–1208.CrossrefGoogle Scholar
  • Villiger R, Bogdan B (2005) Getting real about valuations in biotech. Nature Biotechnology 23(4):423–428.CrossrefGoogle Scholar
  • Xiao W, Xu Y (2012) The impact of royalty contract revision in a multistage strategic R&D alliance. Management Sci. 58(12):2251–2271.LinkGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.