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Factors influencing the profitability of pharmaceutical research

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The output from a pharmaceutical research project is a stream of candidate drugs which may be submitted to clinical trials. The value of this output depends on the characteristics of the stochastic process generating this stream, and on the extent to which the candidate drugs are chemically similar to each other. This paper explores the impact of these factors on profitability, and on the policy which should be followed for selecting candidate drugs.
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Document Type: Research Article

Affiliations: Department of Statistics, University of Oxford, 1 South Parks Road, Oxford, OX1 3PG, UK. ; gittins@stats.ox.ac.uk, Email: charalam@stats.ox.ac.uk

Publication date: 2008-03-01

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