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Portfolio analysis and R&D decision making

Nature Reviews Drug Discovery volume 8, pages 189–190 (2009)Cite this article

Standard practice

Standard approaches to portfolio management in the biopharma industry involve sizing R&D portfolios as a function of expected revenues, and making inclusion–exclusion decisions on a compound-by-compound basis. However, both the sizing and the composition of the portfolio may often not be ideal, for reasons that we give here.

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Figure 1: Influence of portfolio composition on success in pharmaceutical R&D.

References

  1. Blau, G. E., Pekny, J. F., Varma, V. A. & Bunch, P. R. Managing a portfolio of interdependent new product candidates in the pharmaceutical industry. J. Prod. Innov. Manag. 21, 227–245 (2004).

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Authors and Affiliations

  1. Richard Evans, Scott Hinds and Denise Hammock are at AVOS Life Sciences, 1600 Perimeter Park Drive, Suite 225 Morrisville, North Carolina 27560, USA.,

    Richard Evans, Scott Hinds & Denise Hammock

Authors
  1. Richard Evans
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  2. Scott Hinds
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  3. Denise Hammock
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Corresponding author

Correspondence to Scott Hinds.

Supplementary information

Supplementary information S1 (box)

Basis of analysis between portfolio size and probability of drug launches (PDF 186 kb)

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Evans, R., Hinds, S. & Hammock, D. Portfolio analysis and R&D decision making. Nat Rev Drug Discov 8, 189–190 (2009). https://doi.org/10.1038/nrd2744

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