Silicon Valley Medical Technologies SIVMED was found in San Jose CA in Show more COST OF CAPITAL Directed Silicon Valley Medical Technologies SIVMED was found in San Jose CA in 1982 by Kellys OBrien David Roberts and Barbara Smalley.

Silicon Valley Medical Technologies SIVMED was found in San Jose CA in Show more COST OF CAPITAL Directed Silicon Valley Medical Technologies SIVMED was found in San Jose CA in 1982 by Kellys OBrien David Roberts and Barbara Smalley.

OBrien and Roberts both MDs were on the research faculty at the UCLA Medical School at the time; OBrien specialized in biochemistry and molecular biology and Roberts specialized in immunology and medical microbiology. Smalley who has a PhD served as department chair of the Microbiology Department at UC-Berkeley. The company started as a research and development firm which performed its own basic research obtained patents on promising technologies and then either sold or licensed the technologies to other firms which marketed the products. In recent years however the firm has also contracted to perform research and testing for larger genetic engineering and biotechnology firms and the US government. Since its inception the company has enjoyed enormous success even its founders were surprised at the scientific breakthroughs made and the demand for its services. One event that contributed significantly to the firms rapid growth was the AIDS epidemic. Both the US government and the private foundations have spent billions of dollars in AIDS research and SIVMED had the right combination of skills garner significant grant funds as well as perform as a subcontractor to other firms receiving AIDS research grants. The founders were relatively wealthy individuals when they started company and they had enough confidence in the business to commit most of their own funds to the new venture. Still the capital requirements brought on by extremely rapid growth soon exhausted their personal funds so they were forced to raise capital from outside sources. First in 1991 the firm borrowed heavily and then in 1993 when it used up its conventional debt capacity it issued $15 million of preferred stock. Finally in 1996 the firm had an initial public offering (IPO) which raised $50 million of common equity. Currently the stock trades in the over-the counter market and it has been selling at about $25 per share. SIVMED is widely recognized as the leader in an emerging growth industry and it won an award in 1998 for being one of the 100 best-managed small companies in the US. The company is organized into 2 divisions: (1) the Clinical Research Division and (2) the Genetic Engineering Division. Although the two divisions are housed in the same buildings the equipment they use and their personnel are quite different. Indeed there are few synergies between the two divisions. The most important synergies lay in the general overhead and marketing areas. Personnel payroll and similar functions are all done at the corporate level while technical operations at the divisions are completely separate. The Clinical Research Division conducts most of the firms AIDS research. Since most of the grants and contracts associated with AIDS research are long-term in nature and since billions of new dollars will likely be spent in this area the business risk of this division is low. Conversely the Genetic Engineering Division works mostly on in-house research and short-term contracts where the funding duration and payoffs are very uncertain. A line of research may look good initially but it is not unusual to hit some snag which precludes further exploration. Because of the uncertainties inherent in genetic research Genetic Engineering Division is judged to have high business risk. The founders are still active in the business but they no longer work 70-hours weeks. Increasingly they are enjoying the fruits of their past labors and they have let professional managers take over day-to-day operations. They are all on the board of directors though and David Roberts is chairman. Although the firms growth has been phenomenal it has been more random than planned. The founders would simply decide on new a

Having Trouble Meeting Your Deadline?

Get your assignment on Silicon Valley Medical Technologies SIVMED was found in San Jose CA in Show more COST OF CAPITAL Directed Silicon Valley Medical Technologies SIVMED was found in San Jose CA in 1982 by Kellys OBrien David Roberts and Barbara Smalley. completed on time. avoid delay and – ORDER NOW

Do My Paper

Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Order Now and we will direct you to our Order Page at Litessays. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.