THE CAPITAL MARKET AS A SOURCE OF FINANCING FOR SMALL INNOVATIVE COMPANIES IN THE MEDICAL INDUSTRY

Abstract

The objective of the paper is to present the possibilities of financing the development of companies in the pharmaceutical, biotechnological, and medical sectors through the capital market. The trading prices of selected companies on the Polish stock exchanges (NewConnect and WSE) are discussed. Furthermore, the work analyzes the evolution of the WSE in the years 2007–2015 with a particular focus on the trading volumes and the maximum and minimum prices of the stocks of selected biotechnological and medical companies between January 2015 and April 2016. Using DbNotowania software from Statica, the selected companies were analyzed visually to identify abnormal price changes. Data were obtained from the at-skaner.pl database, normalized, and imported to Microsoft Access for more detailed analysis. It was concluded that the WSE may play a more prominent role in the development of innovative biotechnological, pharmaceutical, and medical companies if the changes recommended in this paper are implemented. Given the tendency towards capital market consolidation, it is logical that following an IPO on less liquid markets, companies will gradually try to transition to the more liquid ones. It would be advisable for small innovative companies to attract the attention of recommendation-issuing companies such as Edison Investment Research. The government should encourage individual and institutional investors to participate and finance the Polish capital market by appropriate regulations and tax exemptions.

Keywords

• polish biotechnology companies, polish capital market, financing small innovative companies