RESEARCH TRIANGLE PARK, NC - The greatest barriers to pharmaceutical portfolio management success come from within the organization, according to a new study from business intelligence firm Cutting Edge Information (www.PharmaPortfolioManagement.com).

Among all surveyed companies, the largest percentage of executives – 45% – cited corporate culture and lack of buy-in as the greatest barriers to portfolio management success. Lack of buy-in presents a large problem because of the learning curve presented by some of the tools that portfolio management uses.

“Pharmaceutical Portfolio Management Strategy” sheds light on the world of pharmaceutical portfolio management, including detailed case studies and strategies for building successful functions, allocating resources, and prioritizing portfolio investments. The study compares 26 pharmaceutical portfolio management teams’ benchmarks, including those from companies such as Novartis, Roche, Merck & Co., Sanofi-Aventis and TAP Pharmaceuticals.

“Portfolio management teams are doomed to failure without adequate support from senior executives,” said Elio Evangelista, senior research analyst at Cutting Edge Information. “Internal struggles will plague portfolio management groups until their corporate cultures accept their strategic value.”

Interviewed executives consistently pointed to the need for a clear corporate strategy to drive the portfolio management process. Despite acknowledging this need, countless portfolio management teams are currently operating without a clear strategy or guidance from upper management. In fact, 40.9% of participating pharmaceutical and biotechnology companies feel that their portfolio management successes are either poor or inadequate. Another 40.9% feel that their portfolio management successes are only adequate at best.

Other key findings from the report, which is available online at www.PharmaPortfolioManagement.com, include:
* Portfolio management delivers the strongest impact when aligned with corporate strategy.
* Mid-sized companies face the greatest portfolio management challenges as they grow larger.
* Data standardization, though difficult to achieve, streamlines portfolio management and makes the decision-making process more effective.
* An inverse relationship exists between the frequency of portfolio management team meetings and overall satisfaction with portfolio management success.

 

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