#United States #Chicago #Dream Exchange #Capital Formation #Ioannis Floros

Insights into Capital Formation in the Pharmaceutical Industry

In the ever-evolving landscape of the pharmaceutical industry, access to capital remains a critical issue for small and mid-sized firms. Recently, Dr. Ioannis V. Floros, the Director of Research for Dream Exchange and a respected academic at the University of Wisconsin-Milwaukee, shared his insights during two prominent finance conferences held in Cyprus. His participation highlighted not only his commitment to academic rigor but also the relevance of his research to the mission of Dream Exchange.

Dr. Floros took the stage at the Financial Management Accounting Research Conference (FMARC 2025) in Paphos and the Financial Management Association European Conference in Limassol. At these gatherings, he presented his co-authored work, titled "Interfirm collaboration, ownership stakes, and incomplete contracts Evidence from the pharmaceutical industry." The study explores how firms forge strategic alliances, revealing the critical role of ownership stakes and contract design in influencing collaboration success.

During his discussion at the conferences, he emphasized that complex relationships often necessitate equity stakes between collaborating firms. His research found a positive correlation between ownership stakes and competitive dynamics, asserting that such stakes could significantly reduce relationship costs involved in collaboration. These findings argue for the utility of ownership agreements, suggesting they can facilitate the expansion of firm boundaries—an important consideration for innovative companies navigating high-stakes projects.

Joe Cecala, Founder and CEO of Dream Exchange, framed Dr. Floros’s contributions as essential to addressing one of the key challenges facing the economy—capital access for smaller enterprises. The Dream Exchange aims to create an accessible and liquid public market specifically for these small and mid-sized companies. He stated, "Dr. Floros's work is a cornerstone of our effort," stressing its significance in guiding evaluations of which small-cap firms might be ready to graduate to public trading.

Floros’s commitment to this cause aligns perfectly with Dream Exchange's innovative approach toward the financial markets. The organization seeks to champion emerging businesses, emphasizing equity, ethics, and fairness in finance. The researchers' findings will support the mission of providing a robust environment for small companies, empowering them with the tools they need to compete in larger markets.

Dream Exchange's Form 1 Application has been submitted to the Securities and Exchange Commission (SEC), marking an important step toward becoming the first minority-controlled stock exchange licensed in the United States. Ongoing efforts will ensure its operational readiness upon SEC approval. Additionally, Dream Exchange is striving to create a new type of market— a venture exchange—dedicated to reporting and trading the securities of smaller, early-stage businesses.

For more information about the mission and vision of Dream Exchange, visit www.dreamex.com. As the landscape continues to shift, the insights of academic leaders like Dr. Floros will play a crucial role in informing the strategies employed by the Dream Exchange, paving the way for a more equitable financial environment for the burgeoning pharmaceutical sector and beyond.