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Portfolio Management & Optimization

 

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With our unique, time-tested Methodology and Process,
we analyze R & D Portfolios and balance Risk and Reward
based on a Mix of quantitative and qualitative Criteria
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Portfolio management
 
Key Objectives of the Portfolio Management & Optimization Process
   
     

What is the finacial Value of a Product for the Company versus the Cost to develop it?

Thr Risk-adjusted Net-Present-Value (NPV) is one of the key metrics for Pharmaceutical - Biopharmaceutical Companies to asses the Value of a Compound.

Key components for the Evaluation / Assessment include:

- Total cost of development (Clinical Trials, Approval Cost etc.)
- Sales & Expense forecasts
- Pricing, Cost of Goods (COG's), Royalties etc.
- Annual and cumulative Profits
- Annual and cumulative discounted Cash Flows, terminal Value
- Technical probability of success
- IRR

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Depth of Understanding

Gain concrete knowledge of the scientific and commercial issues facing each compound in clinical development

Scientific issues include:
- Phase of Development and technical probability of success
- Competitive technologies competing in the same space

Commercial issues include:
- Current and future competition
- Changes in Healthcare arena (Pricing, Reimbursement etc.)
- Competitive intensity / spending levels now and in the future

   

Choices, Decisions and Agreement

Prioritized list of all Compounds / Products / Projects in development.

- Pre-clinical
- Phase I - III incl. IIIb

The organization agrees on the prioritizes list as well as high level budgets and development plans for all projects supported for the next budget year

 

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Implications and Action

Understand the implications of these portfolio choices on the operations and budgets of the company

- Product completely supported and go "full speed"
- Products not supported during the next budget year
- Products put on the "back-burner"
- Product prepared for out licensing
- Products to be sold

   
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The overall Objective is to balance a set of financial
and non-financial measures
   


1. Risk adjusted NPV

2. Peak Sales

3. Strategic Fit

4. Innovation / Scientic Value (First in Class, Best in class)

5. R & D Productivity Index

6. Technical Probability of Success

7. Commercial Probability of Success

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