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OPIM 5894 Advanced Project management Vertex Pharmaceuticals case. SURESH NAIR, Ph.D. Professor, School of Business University of Connecticut, Storrs, USA. http://users.business.uconn.edu/snair/opim5894.html. Vertex Pharmaceuticals case. Issues Raised
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OPIM 5894 Advanced Project managementVertex Pharmaceuticals case SURESH NAIR, Ph.D. Professor, School of Business University of Connecticut, Storrs, USA http://users.business.uconn.edu/snair/opim5894.html
Vertex Pharmaceuticals case Issues Raised • Drug development issues – selecting a portfolio of products • In-house versus Licensing issues • Types of risks – Target risk, Mechanism risk, Molecule risk, Market risk • Real options analysis Prof. Suresh Nair, University of Connecticut
Vertex Pharmaceuticals case Team Assignments – Team 1, Team 2, Team 3 • Which of the 4 project portfolio options currently facing Vertex do you favor? • Specifically, which two projects would you advance in development? Why? Show analysis. Remember: If chance of success is 0.2 for each of two projects, • the chance that both succeed is 0.04, • the chance that both fail is 0.64 • The chance that at least one succeeds is 0.32 Prof. Suresh Nair, University of Connecticut
Vertex Pharmaceuticals case Team Assignments (contd.) – Team 1, Team 2, Team 3 • Would you license out the two others not chosen or keep them as backup? • How much should Vertex management rely on quantitative methodologies (such as real option valuation) versus more qualitative approaches? Prof. Suresh Nair, University of Connecticut