Competition in R&D portfolios impacts drug development project values
The article explores how the value of a drug development project is influenced by other projects in a firm's portfolio. By studying the impact of phase III clinical trial failures on market valuation, the researchers found that projects targeting the same market or requiring the same resources can decrease the value of a project. This study provides insights into how interactions between projects affect their overall worth, offering a data-driven approach to valuing projects in the pharmaceutical industry.