Why would a company choose to create an internal startup?
The internal startup enables the company to complete tasks with the greater speed compared to the typical environment of the large corporation. Again, it is always exempted from the parent company restrictions and rules and hence make easier in doing things quickly. Notably, it is the cheaper way to the innovation, execution, and fast market; it motivates the employees and offers the opportunity to differentiate items in the market (Honigmann, 2007). The long-term sustainability gives the company the opportunity to try and tests diverse business models and hence the policies and the process is not applicable forcing the need of the start-ups. Finally, it allows the administrative flexibility of a company because big organization keeps flexible, and the startup can easily be sold off.
Why is timing important?
Timing is the significant factor in every business organization since it contributes to the enormous impact of the valuation of the company. The company running low regarding cash during the time of the assessment brings low value compared to the company that has money during the time of valuation. Also, the company that issues equity at the low value during the time of financing, it will result in bringing the lower value (Honigmann, 2007). The conservation of the money over the life of the company will increase the value of the company and it is as a result of the enough timing. Most companies will prefer to have today’s dollar than tomorrows’ since today’s money can be invested and earn profits and increases the companies worth tomorrow. The dollar received tomorrow is worth less than a dollar received today. The net present value (NPV) is the equation that explains the quality of the current cash tomorrow (Honigmann, 2007). The discount rate measures what the future money losses in value each year.
The market conditions sway most businesses, the demand for the company products and the services have the great impact on the exit strategy. Both the investors and the strategic buyers check on the trending factors concerning the market always (Honigmann, 2007). The merger and the acquisitions are beneficial due to the liquidity where one sells all the stock and in most cases, all the staff may be retained (Honigmann, 2007). The IPO will not allow selling of all stock and the owner is subject to the additional regulations.
Nymox Pharmaceutical Corporation (NYMX)
Details of the business
The company is found in Canada and was founded in 1989 by Dr.Paul Averback and has approximately 1,100 employees. The URL leading to the company website is http://www.nymox.com/index.action.
Products
The company deals with the pharmaceuticals for the aging populations especially the Alzheimer's disease. The leading drug is NX-1207, used to treat the enlarged prostate or benign prostatic hyperplasia (BPH) (Shanley, 2004).
Publicity & Public Info
The company specializes in research and developing the novel and diagnostic products for aging people. They have the development in other fields like the neurodegenerative, infectious diseases and cancer.
Collaborators
Nymox Pharmaceutical Corp collaborates with another pharmaceutical in Japan, India, Europe and U.S. the company operates in two phases under the Serex Inc and Nymox Corp with the facilities in Hasbrouck Heights (Shanley, 2004). The company also received $13,088,000 with the Recordation in 2010, the agreement which has seen the company receive money for its operations.
Competitors
The competitors of the company include the GE Healthcare who have received the FDA approval, the Eli Lilly and Company who are in the active marketing of the florbetapir and the Athena Diagnostics Inc, who are marketing tests that aid the Alzheimer's disease(Shanley, 2004). Others include the Amorfix Life Sciences Ltd, who are selling the brain tests related to the aggregated amyloid protein and lastly the Fujirebio Europe NV, who market the kits for two protein.
Financial Timeline
The business is now trading on the NASDAQ with 3.28USD0.04 (1.23%). The profits from the company have received the money after selling its products across the globe(Shanley, 2004). Other sources of income include the agreements and collaborations like $13,088,000 received from Recordation in 2010.
Reference
Honigmann, E. J. (2007). Buying and selling a small business: An entrepreneurial strategy for success. United States?: Monnet Press.
Shanley, R. P. (2004). Financing technology's frontier: Decision-making models for investors and advisors. Hoboken, N.J: J. Wiley & Sons.
