Achieving a return on invested capital (ROIC) that exceeds the cost of capital remains a challenge for pharmaceutical R&D. To make progress, there needs to be consistent and rigorous modeling of the clinical and commercial determinants of ROIC.
In the second of three articles, CRA’s Dr. Nick Davies, presents such a framework and demonstrates its application to an oncology asset entering Phase 3. The approach utilizes two interlinked engines for clinical simulation and commercial forecasting to provide an integrated view of program economics and risks.
In the last part, we consider how these, and related analytics tools, may be incorporated into portfolio decisions and stage-gate processes, and the benefits that such an integrated approach brings at each stage. We consider both internal R&D and the evaluation and structure of BD&L opportunities.
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