A Modern Simulation Approach for Pharmaceutical Portfolio Management Kirk Solo and Mark Paich. International Conference on Health Sciences Simulation (ICHSS'04), January 18 - 21, 2004, San Diego, California, USA
By creating an integrated simulation environment that models the underlying structure of a pharmaceutical enterprise portfolio it becomes possible to identify the optimal longitudinal allocation of finite resources across the constellation of available investment opportunities. The implementation of a hybrid approach that integrates multiple modeling techniques and analytic disciplines allows for a comprehensive environment that captures the underlying dynamics that drive observed market behavior. The implementation of an object oriented model structure constrains the models complexity by supporting dynamic re-use of both structure and logic. By wrapping such a simulation with advanced optimization approaches it becomes possible to evaluate the pharmaceutical enterprise in a holistic fashion that avoids local optima that can be detrimental to the enterprise. The end result is an analytic approach that not only identifies the optimal enterprise investment portfolio, but provides detail around the structure and dynamics that create the observed behavior.
Physician Awareness Model