The purpose of this case is to provide students with exposure to strategic decision-making in the Life Sciences industry. Executives in this industry are tasked with deciding whether they should approve the advancement of experimental drugs in their pipelines. In many cases, company staff – including those in the Research and Development as well as the Commercial functions – would like to see as many potential drugs advanced to launch as possible. The reality, however, is that all companies have constraints when it comes to financial and human resources that prevent companies from advancing all drugs in their pipelines.
As a result, Life Sciences companies have governance committees to evaluate proposals to advance pipeline assets. For CardioGen, the fictional company that is the subject of this case, decisions are made by the Portfolio Governance Committee (or “PGC”), which is chaired by two of its top executives. Cross-functional development teams prepare investment proposals for PGC each time they need funding to advance a drug to a new clinical trial phase. A key facet of each investment proposal is the financial analysis, which students will be required to prepare.
Through this case, students will learn about the drug development process and prepare financial analyses for two investment proposals going to PGC in June. In addition to preparing quantitative analyses, students will evaluate qualitative factors that may be considered by CardioGen management when making pipeline advancement decisions.