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You might be looking for the term monopsony power or perhaps oligopsony power. A superficial look at the literature indicates that the Herfindahl-Hirschman index (HHI), so commonly used in assessing seller market power, is also used to measure buyer market power. Recall that the HHI is the sum of the squared market shares measured in percent (so a duopoly ...


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Two types of innovation, namely innovation for new services and innovation for alternative network infrastructures, underlie competition in the telecommunications industry. While innovation for new services is provided mainly by telecommunications operators, equipment suppliers provide most of the innovation ...


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It is not uncommon to see revenue and profit histories of biotech companies that as of today probably cannot be described as thriving. This is especially true of the smaller market cap equities. BeiGene is not a small company so I will not comment on it. An internet search shows Nabriva lost money every year from 2016 to 2019 inclusive. An internet search ...


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This is actually two questions. Each is interesting in its own right. Why have so many legitimate smaller biotechs sprung up and thrived? Difficult to say (perhaps some industry insider might be able to provide additional insight), but one possible explanation is that most of the frontier research in this sector happens in universities. Academic ...


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Growth of assets is financed by debt, equity, or retained earnings. Going concern investments are efforts to purchase assets with expected profits which become retained earnings. Venture investments are not financed from retained earnings. The new debt and/or equity funds are invested in a venture which may or may not reach cash flow breakeven in the near or ...


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I would prefer to take a broader tact with this: Why aren't all firms bought at a smaller size? Why are there any small R&D firms? One answer is related to uncertainty. Some firms look like they will be profitable, but they are not. Perhaps their research fails: they cannot get approval, the drug doesn't work, or it has severe undesirable side effects. ...


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