Pharmaceutical Portfolio Management Primer
Why is Portfolio Management So Successful in the Pharmaceutical Industry?
R&D portfolio management has been embraced by the pharmaceutical and biotech industries more than any other because of the unique characteristics of drug development: Huge investments, long development timelines, extremely high risk, and a large number of products in the pipeline. Other industries possess some of these characteristics, but it is the combination of all of them that provides both ample time and motivation to actively manage the portfolio. For example, airplane manufacturers have both long lead times and high investment requirements, but they only develop a few planes at a time, so managing the “portfolio” is primarily achieved by managing the individual projects.