Pharmaceutical Portfolio Management Strategy

Publication Date	March 2006
Publisher	Cutting Edge Information
Product Type	Report
Pages	179
ISBN Number	not applicable
Product Code	CUT00029

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Summary

Cutting Edge Information's latest study delves into the challenges facing pharmaceutical portfolio management teams. As one of the most important components to strategic planning, portfolio management is often left neglected or under-resourced. As many as 82% of pharmaceutical companies believe that their portfolio management successes have been adequate at best. Two-thirds of companies believe that their portfolio management function is lacking resources.

It is no surprise then that many companies struggle with how they will strategically invest in their portfolio products, how to coordinate activities and when to make the decision to cease development in underperforming projects.

Among the many findings that analysts discovered through this research, several strategies and industry trends emerged as more significant, including:

Portfolio management delivers the strongest impact when aligned with corporate strategy
Mid-sized companies face the greatest portfolio management challenges as they grow larger
Data standardization, though difficult to achieve, streamlines portfolio management and makes the decision-making process more effective
Participating companies cited corporate culture and lack of buy-in as the greatest barriers to portfolio management success
An inverse relationship exists between the frequency of portfolio management team meetings and overall satisfied with portfolio management success

Cutting Edge Information developed this research to guide pharmaceutical and biotechnology companies' portfolio management teams. The study includes benchmark data to help portfolio management teams gain adequate resources and understand how best to allocate brand team budgets. The report makes its case with metrics, tools and techniques for managing portfolio planning in these key areas:

Structure, Resources and Tools - Efficient portfolio management structures backed by adequate budgets and staffs allow portfolio planners to obtain required product metrics and make informed recommendations to support the company's products.
Portfolio Management Strategy - Portfolio planning is rendered useless without clear, standardized criteria with which to compare products. Furthermore, maintaining a consistent portfolio strategy allows companies to find lucrative licensing opportunities that drive create at lower costs.
Portfolio Snapshots - Analysis of participating companies' portfolios, including strengths, weaknesses and areas of interest for future growth.

Content

Portfolio Management Structure
- Figure 1.1 : Dedicated Portfolio Management Groups
- Figure 1.2 : Dedicated Portfolio Management Groups: Global-Level
- Figure 1.3 : Dedicated Portfolio Management Groups: Affiliate-Level
- Figure 1.4 : Dedicated Portfolio Management Groups: Small Companies
- Figure 1.5 : Dedicated Portfolio Management Groups: Mid-Sized Companies
- Figure 1.6 : Dedicated Portfolio Management Groups: Large Companies
- Figure 1.7: Portfolio Management Group Structure
- Figure 1.8: Portfolio Management Group Structure: Global-Level
- Figure 1.9: Portfolio Management Group Structure: Affiliate-Level
- Figure 1.10: Portfolio Management Group Structure: Small Companies
- Figure 1.11: Portfolio Management Group Structure: Mid-Sized Companies
- Figure 1.12: Portfolio Management Group Structure: Large Companies
- Figure 1.13: Reporting Relationships in Portfolio Management
- Figure 1.14: Reporting Relationships in Portfolio Management: Global-Level
- Figure 1.15: Reporting Relationships in Portfolio Management: Affiliate-Level
- Figure 1.16: Reporting Relationships in Portfolio Management: Global vs. Affiliate
- Figure 1.17: Reporting Relationships in Portfolio Management: Company Size
Comparison
- Figure 1.18: Reporting Relationships in Portfolio Management: Small Companies
- Figure 1.19: Reporting Relationships in Portfolio Management: Mid-Sized Companies
- Figure 1.20: Reporting Relationships in Portfolio Management: Large Companies
Portfolio Management Resources and Support
- Figure 1.21: Percent of Participants Satisfied with Portfolio Management Resources
- Figure 1.22: Percent of Global-Level Participants Satisfied with Portfolio
Management Resources
- Figure 1.23: Percent of Affiliate-Level Participants Satisfied with Portfolio
Management Resources
- Figure 1.24: Percent of Participants Satisfied with Portfolio Management
Resources by Company Size
- Figure 1.25: Portfolio Management Budgets by Company
- Figure 1.26: Portfolio Management Budgets Based on Number of Investigational Drugs
- Figure 1.27: Portfolio Management Budgets Based on Number of Marketed Drugs
- Figure 1.28: Percent Allocation for Portfolio Investments
- Figure 1.29: Percent Allocation for Global and Affiliate Portfolio Investments
- Figure 1.30: Percent Allocation for Portfolio Investments by Company
- Figure 1.31: Portfolio Management Staffing per Company
- Figure 1.32: Average Staffing by Company Size
- Figure 1.33: Average Portfolio Management Staffing: Global vs. Affiliate
- Figure 1.34: Product Investment Rankings: Global vs. Affiliate
- Figure 1.35: Product Investment Rankings by Company Size
- Figure 1.36: Factors Influencing Increased Portfolio Investments
- Figure 1.37: Factors Influencing Increased Portfolio Investments: Global vs. Affiliate
- Figure 1.38: Factors Influencing Increased Portfolio Investments by Company Size
- Figure 1.38: Factors Influencing Increased Portfolio Investments by Company Size
- Figure 1.40: Factors Influencing Decreased Portfolio Investments: Global vs. Affiliate
- Figure 1.41: Factors Influencing Decreased Portfolio Investments by Company Size
Portfolio Management Tools
- Figure 1.42: Tools Used to Facilitate Portfolio Management Activities
- Figure 1.43: Global-Level Portfolio Management Tools
- Figure 1.44: Affiliate-Level Portfolio Management Tools
- Figure 1.45: Portfolio Management Tools Comparison by Company Size
- Figure 1.46: Small Companies' Portfolio Management Tools
- Figure 1.47: Mid-Sized Companies' Portfolio Management Tools
- Figure 1.48: Large Companies' Portfolio Management Tools
Implementing The Portfolio Management Strategy
Portfolio Management Activities & Timing
- Figure 2.1: Departments Participating in Portfolio Management Activities
- Figure 2.2: Global Departments Participating in Portfolio Management Activities
- Figure 2.3: Affiliate-Level Departments Participating in Portfolio Management Activities
- Figure 2.4: Participation in Portfolio Management Activities: Company Size Comparison
- Figure 2.5: Large Companies' Departments Participating in Portfolio Management
Activities
- Figure 2.6: Mid-Sized Companies' Departments Participating in Portfolio
Management Activities
- Figure 2.7: Small Companies' Departments Participating in Portfolio Management
Activities
- Figure 2.8: Individuals Participating in Portfolio Management Activities
- Figure 2.9: Individuals Participating in Portfolio Management Activities: Global-Level
- Figure 2.10: Individuals Participating in Portfolio Management Activities: Affiliate-Level
- Figure 2.11: Individuals Participating in Portfolio Management Activities: Small
Companies
- Figure 2.12 Individuals Participating in Portfolio Management Activities: Mid-Sized
Companies
- Figure 2.13: Individuals Participating in Portfolio Management Activities: Large
Companies
- Figure 2.14: Portfolio Management Timing: Initiate Activities
- Figure 2.15: Portfolio Management Timing: Global-Level Initiation
- Figure 2.16: Portfolio Management Timing: Affiliate-Level Initiation
- Figure 2.17: Portfolio Management Timing: Small Companies' Initiation
- Figure 2.18: Portfolio Management Timing: Mid-Sized Companies' Initiation
- Figure 2.20: Portfolio Management Meetings
- Figure 2.21: Portfolio Management Meetings: Global-Level
- Figure 2.22: Portfolio Management Meetings: Affiliate-Level
- Figure 2.23: Portfolio Management Meetings: Small