... enhance our understanding on the determinants of the market value of biotech stocks. Originality/value This paper provides insights into the valuation of biotechnology stocks. Results show non‐linearities in the pricing of summary accounting measures and fundamental income statement variables...

.... Research and development Share prices Biotechnology Investments Economic fluctuations The rapid growth in the biotech industry increasingly attracts investors. For instance, this industry raised more than $15 billion in new capital in 2003 (Weintraub, 2004). However, new drugs take an average...