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SOME STATISTICAL ISSUES IN PROJECT PRIORITIZATION IN THE PHARMACEUTICAL INDUSTRY

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Capital Investment and Risk Analysis Pharmaceutical Economics and Policy Health Systems, Economic Evaluations, Quality of Life

Abstract

Various aspects of portfolio management and project prioritization within the pharmaceutical industry are examined. It is shown that the cost and probability architecture of a project is a crucial aspect of its value. An appropriate simple tool for ranking projects is the Pearson index. Various difficulties are considered.

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2006Optimal decision indices for R&D project evaluation in the pharmaceutical industry: Pearson index versus Gittins index

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