How Bayer Makes Decisions to Develop New Drugs

Jeffrey S. Stonebraker ()
Additional contact information
Jeffrey S. Stonebraker: Bayer Biological Products, 4101 Research Commons, 79 T.W. Alexander Drive, Research Triangle Park, North Carolina 27709-3387

Interfaces, 2002, vol. 32, issue 6, 77-90

Abstract: Drug development is time consuming, resource intensive, risky, and heavily regulated. To ensure that it makes the best drug-development decisions, Bayer Pharmaceuticals (Pharma) uses a structured process based on the principles of decision analysis to evaluate the technical feasibility and market potential of its new drugs. In July 1999, the biological products leadership committee composed of the senior managers within Bayer Biological Products (BP), a business unit of Pharma, made its newly formed strategic-planning department responsible for the commercial evaluation of a new blood-clot-busting drug. Even though Pharma's use of decision analysis began in the late 1980s, this commercial evaluation was BP's first decision analysis project. Previously, BP had analyzed a few business cases for review by Pharma. Pharma senior managers considered our recommendations relevant to their decision making. The project also institutionalized decision analysis at the business-unit level.

Keywords: Decision; analysis:; applications.; Industries:; pharmaceutical (search for similar items in EconPapers)
Date: 2002
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://dx.doi.org/10.1287/inte.32.6.77.6475 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:orinte:v:32:y:2002:i:6:p:77-90

Access Statistics for this article

More articles in Interfaces from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().