Portfolio review and analysis is not new. Techniques have been available and widely used in many industries for a number of years. However, the changes in the pharmaceutical industry and its environment have caused pharmaceutical companies to examine their portfolios with a degree of rigor which, in the past, has not always been considered desirable or necessary. Probability of success must be maximized and cost of failure minimized because future returns are unlikely to allow the industry to cover its risk with the same margins historically achieved. It is becoming increasingly clear that a more structured portfolio review process is required to achieve these aims. The organization will benefit at several levels through
gaining greater insight into the value of existing and proposed developments.
gaining insight into strategic issues
development of analytical processes and tools to assist effective decision making
FIG. 1
Three elements to balance in portfolio review and
analysis.
