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    N Biotechnol. 2009 Jun;25(5):369-76. Epub 2009 Apr 5.

    Growth and profitability in small privately held biotech firms: preliminary findings.

    Brännback M, Carsrud A, Renko M, Ostermark R, Aaltonen J, Kiviluoto N.

    Source

    Abo Akademi University, Department of Business Studies, Henriksgatan 7, FIN-20500 Abo, Finland. Malin.brannback@abo.fi <Malin.brannback@abo.fi>

    Abstract

    This paper reports on preliminary findings on a study of the relationship of growth and profitability among small privately held Finnish Life Science firms. Previous research results concerning growth and profitability are mixed, ranging from strongly positive to a negative relationship. The conventional wisdom states that growth is a prerequisite for profitability. Our results suggest that the reverse is the case. A high profitability-low growth biotech firm is more probably to make the transition to high profitability-high growth than a firm that starts off with low profitability and high growth.

    PMID:
    19491050
    [PubMed - indexed for MEDLINE]

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