ABSTRACT

This chapter explains closer integration of the strategic and financial appraisal for pharma projects. Project evaluation brings together analysis of both the external and internal pharma environment and translates this picture into value- and cost-driver analysis. The business value system provides a context against which the value of pharma projects can be assessed. Defining the assumptions underpinning the value of the project requires considerable debate and challenge to provide a realistic basis for a business case. One way of now testing the external and internal assumptions for the project is by using the Uncertainty-importance grid. Using this analysis grid, managers can plot key assumptions driving the value of the pharma project decision. Here the Uncertainty-importance grid needs to be accompanied by some intensive thinking about the system which drives key uncertainties for any major pharma project. The uncertainty tunnel is depicted as a tunnel bounded by constraints on what is possible within a project's environment.