Joshua Boger, CEO of Vertex has to decide on two out of four R&D portfolios that are to be fully funded by Vertex and to decide on the fate of the other two portfolios i.e. whether to partner or hold them as backups.
In order to decide on the R&D portfolio, an objective quantitative analysis might not be suitable considering the high levels of uncertainities and consequently the risks involved in pharmaceutical research projects. It is important to have a qualitative analysis of the situation as a whole that includes Vertex’s own financial position, strategic implications, a quantitative analysis of its Portfolios with realistic estimations and a risk analysis of the portfolios.
1. Vertex finacial analysis …show more content…
The potential market for each drug decides the future marketability and income from the product. However compared to the other six factors and assuming that any bio-techonology farm before embarking on a research project has a fair idea of the target disease and the drug’s poential market, a weight of 3 has been assigned to this factor.
Vertex’s success is directly dependent on its success on its researchs. Considering the current financial situation, it is important that Vertex needs to focus on projects which are less complex and so that the risk can be reduced. However, complexity