Using @RISK for a Drug Development Decision: a Classroom Example – Palisade
Using @RISK for a Drug Development Decision: a Classroom Example – Palisade
5 PagesCustomers & Industries: Illinois State University Industry: Pharmaceutical, Academic Product(s): @RISK Application: Pharmaceutical R&D, Net Present Value, Internal Rate of Return Summary @RISK is a valuable teaching tool that can be used to illustrate countless risk evaluation examples to students. At Illinois State University, Associate Professor of Finance Domingo Joaquin uses @RISK to demonstrate how simulation modeling can be employed to support the R&D decision of a pharmaceutical firm. @RISK The example assumes that the company, “Drugco”, has just successfully completed Phase I and Phase II clinical trials for a new pharmaceutical, “Newdrug”. Drugco must decide if it should proceed with Phase II, which takes two years to complete and requires an investment of $200 million. At complet
