The Importance of ROI Evaluation in the Pharmaceutical/Biotechnology Industry

Several of LBG’s consultants recently published a joint article on Return on Investment (ROI) calculations and tools used by pharmaceutical and biotechnology companies in evaluating product returns, guiding decisions on further product development or terminating programs prior to company losses. In the article they present a framework for executing ROI calculations to enable investment or termination decisions for research and development projects. This is augmented with insight on how to apply the framework to academic, government and non-governmental organization (NGO) program evaluations where ‘profits’ are not always measured in purely economic terms.

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