Leading pharmaceutical companies invest billions of dollars in research and development every year little or no guarantee of a return on their investment.
With the average cost of developing a new drug hitting the $800 million mark, accurately forecasting market potential of new compounds is becoming an essential tool in long-term strategic planning.
Forecasting is essential in understanding how the dynamics of a market are changing, in evaluating licensing and acquisition opportunities for a particular therapeutic candidate and in raising the awareness of company executives of both current and potential future competitors.
Pharmaceutical product forecasting also provides precious building blocks for modeling and simulation exercises that investment analysts need to conduct on a continuous basis to estimate return-on-investment decisions and fine tune their portfolios.