...September 2005 Project Portfolio Management at XYZ Pharma Early morning, Monday 29th August 2005. John Smith, head of portfolio management and strategic planning, was paging through the slides he had prepared for the Portfolio Management Board (PMB) meeting which would start at 9 am, and which was scheduled to last until Friday. “We have been preparing this meeting for weeks”, he thought, “and it seems the PMB has some tough decisions to make”. The PMB of XYZ Pharma, the pharmaceutical division of XYZ, one of the world’s leading companies in the life science sector, convenes yearly in August to review the composition of the research and development (R&D) project portfolio. It also meets on a monthly basis to monitor the project portfolio and make decisions regarding new developments. According to John Smith, “The PMB is an important decision making body because it shapes the future of the company by determining its product pipeline”. The PMB members include the CEO of XYZ, the CEO of XYZ Pharma, the heads of the different business units, the heads of Development, Research, Global Marketing and Strategic Planning, the regional heads for the US, Europe and Japan and the functional managers for Regulation, Clinical, Licensing, Technical Research and Development, and Patents. The portfolio group, led by John Smith, had analysed the project portfolio carefully and had highlighted several potential threats that required action. According to John, “There will be an indepth discussion...
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...What are the objectives? The objective of XYZ’s pharmaceutical division is to reach and maintain a growth rate in the double digits. The top management of XYZ is committed to vigorous growth in total sales and the creation of shareholder value. Their goals are to release other NME products within the next 5 years, especially in the cardiovascular therapy area and the immune disorder and inflammation franchise. What are the constraints? The time frame that it takes to research, test, approve, and market a new drug place a big constraint on the pharmaceutical industry. The approximate time of the total process is 12 years. John Smith stated that “… a good performance today is actually determined to a large extent by which decisions have been made 10 years ago.” Another constraint would be the probability of each drug advancing to the next stage. What are the risks involved? One risk involved would be the probability that each drug will advance to the next stage. These probabilities are very low, meaning that only a small percentage of drugs actually make it to the market for use. According to the report, on average only one in five drugs entering clinical trials is launched on the market. In addition, only one in five thousand developed compounds in the research phase makes it to the market. There are also cost risks. You must consider the cost to research the drug (billions of dollars) while also keeping in mind that the drug may never make it to the market. Additionally...
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...Running head: XYZ PHARMECEUTICALS BUSINESS PROBLEM Business Problem: XYZ Pharmaceuticals University of Phoenix Introduction Good research has quantifiable metrics that can be used to prove a given theory or point. Good research practices are also necessary if one is to provide credible and professional work. This is why good research skills are so important and why XYZ Pharmaceuticals in Atlanta, Georgia needs to account for the following when determining research sources: 1) Independent research-also known as third party research that should be an objective study with no hidden agendas; 2) Quantitative Research studies needs to be measurable and provide quantifiable facts and not just opinion; 3) Qualitative Research is the collection of subjects and third party information that provides accurate opinions and data for a given subject; 4) Sample Size of research can give credence to the veracity of the claims based on study. Too small or too large a sample can throw off the analysis obtained from the study; 5) Variables: in most studies, there are certain variables that have to be accounted for. Some variables are uncontainable, but accurate data collection has to have variable standards that can be controlled; 6) Replication/Peer Review: the most credible studies have to be able to be duplicated by peers in the same field who lend their own authority to the validity and credibility of the experiment or endeavor. A group of experts that can replicate...
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...Davida Franklin SCMS 3711 M50 M.Cervetti XYZ Critical Thinking Project Part 1- Framing the Project Portfolio Management Problem 1. What are the objectives? The objective is to research and develop pharmaceuticals products based on the selections that minimize cost and maximize value and sales. There will be a discussion of which projects will be allocated additional resources and at what cost. 2. What are the constraints? Competition is usually between brand-name drugs. Constraints for the study include risky drug discovery and development which could cause harm to participants and also waste money used on development. Other restrictions include the amount of time spent on Research and Development which leads to increased costs. There is also the concern with low return on investments and the emergence of generic drugs and competitors. 3. What are the risks involved? There are both technical and commercial risks involved. The most risky aspect of the project is within the research and development process. Drug discovery and development is extremely risky, time-consuming, and expensive. Millions of dollars are spent in the R& D process and many of the drugs created do not make it past the Basic Research stage. The risks associated with low return on investment or no return at all on the investment pose a big risk for pharmaceutical companies. 4. What are your alternatives? The company can choose to allocate resources to other projects or services besides pharmaceutical...
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...consuming and expensive process. Lower priced generic drugs and their competitors impose constraints along with risky drug discovery and development and uncertain return on investments. • What are the risks involved? A large fraction of drug development costs are spent on drugs that do not reach the market illustrating the high technical risks. Even the drugs that reach the market only 30 percent achieve the commercial success to recover the development costs to yield a healthy return, illustrating the additional commercial risk involved. • What are you alternatives? Development with lower costs, optimal research, reducing costs elsewhere and increasing sales • What information is required for project portfolio management at XYZ and how can it be collected? All independent research and development projects including their cost. Technical success probability. Projected launch year, pre-launch cost, return on investment and market risk. This information can be collected by comparison from competitors costs and sales or previous years costs and sales. Part 2 – Project Valuation How would you determine the value of the following project (Project 1) in XYZ’s portfolio, a project in the pre-clinical phase, part of the Oncology therapeutic area? I would determine the value by evaluating all of the risk associated with the projects, figure the probability of success and failure, along with calculating the projects cost and present value. What additional information...
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...September 2005 Project Portfolio Management at XYZ Pharma Early morning, Monday 29th August 2005. John Smith, head of portfolio management and strategic planning, was paging through the slides he had prepared for the Portfolio Management Board (PMB) meeting which would start at 9 am, and which was scheduled to last until Friday. “We have been preparing this meeting for weeks”, he thought, “and it seems the PMB has some tough decisions to make”. The PMB of XYZ Pharma, the pharmaceutical division of XYZ, one of the world’s leading companies in the life science sector, convenes yearly in August to review the composition of the research and development (R&D) project portfolio. It also meets on a monthly basis to monitor the project portfolio and make decisions regarding new developments. According to John Smith, “The PMB is an important decision making body because it shapes the future of the company by determining its product pipeline”. The PMB members include the CEO of XYZ, the CEO of XYZ Pharma, the heads of the different business units, the heads of Development, Research, Global Marketing and Strategic Planning, the regional heads for the US, Europe and Japan and the functional managers for Regulation, Clinical, Licensing, Technical Research and Development, and Patents. The portfolio group, led by John Smith, had analysed the project portfolio carefully and had highlighted several potential threats that required action. According to John, “There will be an indepth discussion...
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...September 2005 Project Portfolio Management at XYZ Pharma Early morning, Monday 29th August 2005. John Smith, head of portfolio management and strategic planning, was paging through the slides he had prepared for the Portfolio Management Board (PMB) meeting which would start at 9 am, and which was scheduled to last until Friday. “We have been preparing this meeting for weeks”, he thought, “and it seems the PMB has some tough decisions to make”. The PMB of XYZ Pharma, the pharmaceutical division of XYZ, one of the world’s leading companies in the life science sector, convenes yearly in August to review the composition of the research and development (R&D) project portfolio. It also meets on a monthly basis to monitor the project portfolio and make decisions regarding new developments. According to John Smith, “The PMB is an important decision making body because it shapes the future of the company by determining its product pipeline”. The PMB members include the CEO of XYZ, the CEO of XYZ Pharma, the heads of the different business units, the heads of Development, Research, Global Marketing and Strategic Planning, the regional heads for the US, Europe and Japan and the functional managers for Regulation, Clinical, Licensing, Technical Research and Development, and Patents. The portfolio group, led by John Smith, had analysed the project portfolio carefully and had highlighted several potential threats that required action. According to John, “There will be...
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...Project Portfolio Management at XYZ Pharma Early morning, Monday 29th August 2005. John Smith, head of portfolio management and strategic planning, was paging through the slides he had prepared for the Portfolio Management Board (PMB) meeting which would start at 9 am, and which was scheduled to last until Friday. “We have been preparing this meeting for weeks”, he thought, “and it seems the PMB has some tough decisions to make”. The PMB of XYZ Pharma, the pharmaceutical division of XYZ, one of the world’s leading companies in the life science sector, convenes yearly in August to review the composition of the research and development (R&D) project portfolio. It also meets on a monthly basis to monitor the project portfolio and make decisions regarding new developments. According to John Smith, “The PMB is an important decision making body because it shapes the future of the company by determining its product pipeline”. The PMB members include the CEO of XYZ, the CEO of XYZ Pharma, the heads of the different business units, the heads of Development, Research, Global Marketing and Strategic Planning, the regional heads for the US, Europe and Japan and the functional managers for Regulation, Clinical, Licensing, Technical Research and Development, and Patents. The portfolio group, led by John Smith, had analysed the project portfolio carefully and had highlighted several potential threats that required action. According to John, “There will be an in-depth discussion of which...
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...Respected Sir/Madam, I xxxx completed Bachelors in xyz College of xyz affiliated to University, Mumbai with 50% Following this, I was involved in research and has been working as an Analyst for Plant pharmaceuticals in Quality Control Department of Alapati Pharma company. I was Kindled with an ambition of higher education that would give a desired push to my career. With a strong will to pursue my further studies in Canada, I prepared for the IELTS examination and scored 6.5 bands. I am prepared to further deepen and refine my expertise through Biotechnology Course which has led me to take admission in one of the top Colleges, Centennial College, Canada. I was brought up in a well educated family and this helped me to maintain a consistent and excellent academic record; I secured Distinction marks in SSC and Intermediate. During my Bachelors, I submitted many research papers in worldwide and India wide seminars like IPC, IPA, National seminars where 12 of my Research papers were published in Medical and Pharmacy Journals. I was also awarded a "Gold medal" for a Seminar conducted by Indian Pharmaceutical Congress which provided me a wonderful platform to meet the top heads of Pharmaceutical Industry in the country. I Started my career as an Asst. Manufacturing Chemist in Triomed Formulations India(Pvt) Ltd as soon as i was graduated. Then i opted for a Subject Knowledge Enhancement Course (Student...
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...Trueblood case 09-2: Pharmgen 1. There are several issues in this case. How to account for the funding of the R&D and royalty payments. The other issue is to identify the authoritative literature applicable to this funding arrangement and to discuss the appropriate accounting for the Agreement in accordance with that guidance. 2. The facts: a. Pharma enters into an agreement with Company XYZ, a PEI. b. Pharma to receive up to $500 million from the PEI for R&D for the development of a new drug. c. The PEI is to participate financially in the development of X. d. The funding is to be solely used for the development of X. e. The amounts received is non-refundable and Pharma is not obligated to successfully complete the development of X. f. Pharma will receive incremental funding from the PEI as long as Pharma is showing progress towards the development of X. g. The total estimated costs are $1 billion and the development will take 3 years. h. Pharma retains all the intellectual property rights to X. i. There will be no joint marketing agreements nor will there be collaboration agreements. j. The PEI is entitled to receive royalties associated with the revenues of X and future royalties associated with an existing commercialized drug for a defined period. 3. ASC-730-20 is applicable here. This is because Pharmgen is entering into an agreement with PEI (investors) on a contractural basis to provide services for the R&D results (FASB 68). Pharmgen obtains the exclusive...
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...Essay Name Institution Course Xyz Pharma Part 1: Project Portfolio Management Problem Framing a. Objectives: The objective is to undertake research and develop pharmaceutical products using criteria that will reduce the value b. Constraints: There are factors that affect the process of drug discovery and development making it time consuming, extremely risk and also very expensive. The development of generic drugs and competitions they create in the market is a constraint on the development of new drugs. There is always the uncertainty of not getting return on investment. c. Risks: The biggest risk in the industry is research and development of products that do not qualify to reach the market despite the technical and financial commitments that accrue during the process. The drugs that reach the market are not guaranteed success with less than 30% recording success. There are several instances where a company fails to recover their investment making the whole process high risk. d. Alternatives: It is more prudent to engage in development with lower cost, conduct optimal research and maximize on the sales. e. What information is required for the portfolio management at XYZ and how it can be collected: The information required include the development projects, research conducted and their costs. The probability of the technical success should be analyzed. The probable year of launch, the cost of launching, the market risk analysis, and return...
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...Project Portfolio Management at XYZ Pharma Part 1 – Framing the Project Portfolio Management Problem * What are the objectives? To prioritize the research & development selection based on the selection that maximizes value * What are the constraints? Extremely risky drug discovery and development, lengthening development times which increase development cost, return on investments, and generic competitors. * What are the risks involved? Technical risk, a large portion of all development costs are spent on drugs that never reach the market. Commercial risk, even of the drugs that reach the market, only 30% are successful enough to recover the development costs to yield a healthy return. * What are your alternatives? Optimal research and development with lower cost, increase sales, reduce other cost. * What information is required for project portfolio management at XYZ and how can it be collected? All independent research and development projects, including their cost, technical success probability, projected launch year, the company’s net sales relative to the project’s launch year, pre-launch cost, return on investment, and the appropriate market risk Part 2 – Project Valuation How would you determine the value of the following project (‘Project 1’) in XYZ’s portfolio, a project in the pre-clinical phase, part of the Oncology therapeutic area? I would determine the value by evaluating all risk associated with the project, calculate...
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...RESEARCH PROJECT ON “TRAINING AND DEVELOPMENT IN PHARMASUITICAL INDUSTRY WITH SPECIAL REFERENCE OF MANKIND PHARMA LTD” SUBMITTED IN PARTIAL FULFILLMENT OF DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION SESSION (2011-2014) SUBMITTED TO: SUBMITTED BY: XYZ XYZ BBA III University Roll No. SUBMITTED TO ACKNOWLEGDEMENT “Gratitude is the hardest of emotions to express and one often does not find adequate words to convey what one feels and trying to express it” The present project file is an amalgamated of various thoughts and experiences .The successful completion of this project report would have not been possible without the help and guidance of number of people and specially to my project guide .I take this opportunity to thank all those who have directly and indirectly inspired, directed and helped me towards successful completion of this project report. I am also immensely indebted to my project guide, MS. Divya Vaid Lecturer, ICL, for his illumining...
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...MASTER OF BUSINESS ADMINISTRATION (MBA) (Revised) 1. The Program: The importance of „management‟ as a professional study can today be compared with that of obtaining a normal graduate degree in order to be called educated. It is just short of becoming a compulsion. Businesses and institutions are growing in complexity and size. They are cutting across space and time by embracing technology, globalization and information. Mere operational efficiency is no more sufficient. Managerial capabilities have become necessary for firms to act on a global platform. Although there are a large number of institutions offering MBA programs, many of them just churn out non employable MBAs. A good institute must incorporate what the industry requires with changing times. The SMU way to Management degree or diploma is to mould the learning towards this objective. With this perspective it has introduced several programs which are geared to meet the industry requirement. These areas are Banking, Information System, Retail Operations and Healthcare. It is planning to offer more programs in the field of environment, disaster management, and media. The master of business administration (MBA) is an integrated program designed to provide an advanced program in management for those seeking managerial positions in industry, commerce and services. The core subjects are aimed at developing knowledge and skills in fundamental management disciplines. The program also involves participation in group work with...
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...100 100 100 100 50 50 TRIMESTER – II CODE MBA-072 MBA-082 MBA-092 MBA-102 MBA-112a MBA-112b PAPER CREDITS Quantitative Methods and Operations Research 4 Economic Environment for Business 4 Production and Operations Management 4 Financial Management 4 Seminar on Negotiation Skills 2 Workshop on Management Information Systems 2 o Introduction to Retail Management (R. Mgt.)* 4 SECTORAL SUBJECT – 1 MARKS 100 100 100 100 50 50 100 o Principles of Banking and Insurance (B & I)* o Introduction to IT and Telecommunications (IT & Tel)* o Introduction to Infrastructure (Infra. Mgt.)* o Industrial Pharmacy and Pharmaceutical Technology (Pharma. Mgt.)* o Hospital Planning and Organization (Hosp. Mgt.)* MBA-122 *R. Mgt= Retail Management; B&I= Banking & Insurance; IT & Tel.= IT & Telecommunication; Infra. Mgt.=Infrastructural Management; Pharma. Mgt.=Pharmaceutical Management; Hosp. Mgt.=Hospital Management. TRIMESTER – III CODE MBA-133 MBA-143 MBA-153 MBA-163a MBA-163b PAPER Legal Aspects of Business Marketing Management Organizational Behaviour Seminar on Business Research Methodology Seminar on Business Ethics o Advertising and Sales Management (R.Mgt.)* SECTORAL SUBJECT – 2 CREDITS 4 4 4 2 2 4 MARKS 100 100 100 50 50 100...
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