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already in the portfolio, and the new project is added to the appropriate place in the grid based on its relative risk and reward characteristics. |
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The third type of project assessment is an evaluation of each project to assess its progress. For research projects, this can and should be done prior to the risk-reward assessment. The review of research projects is a valuable mechanism for scientists to organize their data in a way that demonstrates to themselves as well as to management what they have accomplished and what they propose to do. The research team should outline what yet needs to be done to identify a development candidate, how long it will take, and how much effort will be required, including known technical hurdles. With this information, the cost of research for completion of the planned research studies can be easily estimated. |
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Unlike the discovery portfolio, the development portfolio focuses on the strengths and weaknesses of specific drug substances. The internal criteria that characterize the drug's effects, the capabilities of the staff to develop it, and the external criteria that assess competing products and the marketplace should be assessed in financial terms whenever possible. As new information about the drug is generated in the development process, this information should be factored into an updated assessment of the candidate's value and place in the portfolio. |
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If development projects are reviewed with each new finding, estimates of the market value of the product will become more accurate. These financial and economic factors should be increasingly weighted in the latter stages of development in determining whether or not to proceed with development [27]. In the market of the future, the attractiveness of a product will depend not only on medical need but also on competitive pricing. Therefore, if the financial value of the product is no longer attractive, drug development should be terminated, no matter how far development has proceeded. |
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For research projects that are making good scientific progress, termination should be considered only if the costs are prohibitive or the time to reach a development candidate is excessively long. However, if progress has not been made in identifying a strategy that would lead to a development candidate, and it is not clear what steps should be taken to work toward a development candidate, the research should be terminated, no matter how scientifically intriguing. |
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F. Portfolio Review and Priority Setting |
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The objective of the portfolio is to maintain a collection of potential drug products that meet the strategic objectives of the company and are balanced between the high likelihood of reaching the market and a good return on their investment. Few drugs promise both a high likelihood of success and a high |
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