Division of Planning and Management, Department of Humanities and Social Engineering, Toyohashi University of Technology, 1–1 Hibarigaoka, Tenpaku, Toyohashi, Aichi, 441–8580, Japan. E-mail:
Japan has the aging population as a near future critical problem. One of start-up functions is more rapid commercialization of life science than large corporations do. However, its innovation depends on the inefficiency as the fecundity and many deaths. In Japan, the number of biotech start-ups exceeded more than 300, mainly due to the national reform of the system of technology-transfer from universities. At the same time, the expansion of M&A activities of pharmaceutical corporations can increase the partnership opportunity with them. But so far, only more than ten biotech start-ups have achieved the IPOs. Then, this paper will especially examine the survival strategy or approach of drug-discovery start-ups during the Death-valley as a negative cash flow period, from a viewpoint of real options analysis.
biotech start-up, death-valley strategy, real options
