Biomedical Engineering Reference
In-Depth Information
Therapeutic Areas
Phase I
Phase II
Phase III
In Registration
Cardiovascular
& Metabolic
9
3
3
2
Inflammation
& Immunology
4
10
2
0
Neuroscience
& Pain
8
6
8
4
Oncology
11
4
8
2
2
2
0
1
Vaccines
Other Areas of
Focus
3
6
4
1
Overall
37
31
25
10
Fig. 3.3
Product development portfolio of Pfizer (
2011
)
authority to initiate and kill projects, with fewer management layers and increased
focus on specific initiatives for scientists within a unit (Garnier
2008
). Similar orga-
nizational transformations are evidenced in other firms such as Pfizer (Taylor
2009
).
From this example, it appears that pharmaceutical firms are still exploring optimal
organizational structures to manage their R&D portfolios to combat the decline of
20 % in R&D productivity between 2001 and 2007 (IMAP
2011
). Further, pharma-
ceutical firms are also dealing with how to minimize bureaucracy, align research
objectives with incentives, and maintain balance between flexibility and control
(IMAP
2011
).
3.1.5
Managerial Issues Discussed in This Chapter
The remainder of this chapter covers the two major areas of portfolio management
(portfolio evaluation and optimization) and discusses various execution issues in
portfolio management.
To manage a new drug portfolio, the first step is to accurately evaluate a port-
folio and its constituent projects. In Sects.
3.2.1
through
3.2.3
, we review popular
methods for evaluating the value and risk of individual projects and portfolios
including decision trees, real options, and the Capital Asset Pricing Model
(CAPM). In Sect.
3.2.4
, we discuss managerial heuristics used in interpreting data
such as portfolio measures.
Search WWH ::
Custom Search