IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

How Bayer Makes Decisions to Develop New Drugs

Listed author(s):
  • Jeffrey S. Stonebraker


    (Bayer Biological Products, 4101 Research Commons, 79 T.W. Alexander Drive, Research Triangle Park, North Carolina 27709-3387)

Registered author(s):

    Drug development is time consuming, resource intensive, risky, and heavily regulated. To ensure that it makes the best drug-development decisions, Bayer Pharmaceuticals (Pharma) uses a structured process based on the principles of decision analysis to evaluate the technical feasibility and market potential of its new drugs. In July 1999, the biological products leadership committee composed of the senior managers within Bayer Biological Products (BP), a business unit of Pharma, made its newly formed strategic-planning department responsible for the commercial evaluation of a new blood-clot-busting drug. Even though Pharma's use of decision analysis began in the late 1980s, this commercial evaluation was BP's first decision analysis project. Previously, BP had analyzed a few business cases for review by Pharma. Pharma senior managers considered our recommendations relevant to their decision making. The project also institutionalized decision analysis at the business-unit level.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Article provided by INFORMS in its journal Interfaces.

    Volume (Year): 32 (2002)
    Issue (Month): 6 (December)
    Pages: 77-90

    in new window

    Handle: RePEc:inm:orinte:v:32:y:2002:i:6:p:77-90
    Contact details of provider: Postal:
    7240 Parkway Drive, Suite 300, Hanover, MD 21076 USA

    Phone: +1-443-757-3500
    Fax: 443-757-3515
    Web page:

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:inm:orinte:v:32:y:2002:i:6:p:77-90. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.