What is the right amount to spend on biopharma R&D?

@article{Ringel2017WhatIT,
  title={What is the right amount to spend on biopharma R&D?},
  author={Michael S. Ringel},
  journal={Nature Reviews Drug Discovery},
  year={2017},
  volume={16},
  pages={597-598}
}
Despite a large body of evidence that markets are generally efficient, some firms devote substantial attention to managing steady earnings per share (EPS) growth. Researchers have consistently concluded that, with few exceptions, stock valuations adjust for these machinations, such that company values align to the fundamentals of net present value (NPV) of expected future cash flows (Principles of Corporate Finance; 1991). This phenomenon is seen in the biopharma industry just as in the broader… CONTINUE READING