Multi-Objective Pharmaceutical Portfolio Optimization under Uncertainty of Cost and Return
This paper presents the study of multi-objective optimization of a pharmaceutical portfolio when both cost and return values are uncertain. Decision makers in the pharmaceutical industry encounter several challenges in deciding the optimal selection of drug projects for their portfolio since they ha...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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MDPI AG
2021-09-01
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| Series: | Mathematics |
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| Online Access: | https://www.mdpi.com/2227-7390/9/18/2339 |
| _version_ | 1797518317683998720 |
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| author | Mahboubeh Farid Hampus Hallman Mikael Palmblad Johannes Vänngård |
| author_facet | Mahboubeh Farid Hampus Hallman Mikael Palmblad Johannes Vänngård |
| author_sort | Mahboubeh Farid |
| collection | DOAJ |
| description | This paper presents the study of multi-objective optimization of a pharmaceutical portfolio when both cost and return values are uncertain. Decision makers in the pharmaceutical industry encounter several challenges in deciding the optimal selection of drug projects for their portfolio since they have to consider several key aspects such as a long product-development process split into multiple phases, high cost and low probability of success. Additionally, the optimization often involves more than a single objective (goal) with a non-deterministic nature. The aim of the study is to develop a stochastic multi-objective approach in the frame of chance-constrained goal programming. The application of the results of this study allows pharmaceutical decision makers to handle two goals simultaneously, where one objective is to achieve a target return and another is to keep the cost within a finite annual budget. Finally, the numerical results for portfolio optimization are presented and discussed. |
| first_indexed | 2024-03-10T07:28:11Z |
| format | Article |
| id | doaj.art-952a2c5f673a498e9c2613fdfb3bcacd |
| institution | Directory Open Access Journal |
| issn | 2227-7390 |
| language | English |
| last_indexed | 2024-03-10T07:28:11Z |
| publishDate | 2021-09-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Mathematics |
| spelling | doaj.art-952a2c5f673a498e9c2613fdfb3bcacd2023-11-22T14:06:54ZengMDPI AGMathematics2227-73902021-09-01918233910.3390/math9182339Multi-Objective Pharmaceutical Portfolio Optimization under Uncertainty of Cost and ReturnMahboubeh Farid0Hampus Hallman1Mikael Palmblad2Johannes Vänngård3Captario AB, 411 38 Gothenburg, SwedenCaptario AB, 411 38 Gothenburg, SwedenCaptario AB, 411 38 Gothenburg, SwedenCaptario AB, 411 38 Gothenburg, SwedenThis paper presents the study of multi-objective optimization of a pharmaceutical portfolio when both cost and return values are uncertain. Decision makers in the pharmaceutical industry encounter several challenges in deciding the optimal selection of drug projects for their portfolio since they have to consider several key aspects such as a long product-development process split into multiple phases, high cost and low probability of success. Additionally, the optimization often involves more than a single objective (goal) with a non-deterministic nature. The aim of the study is to develop a stochastic multi-objective approach in the frame of chance-constrained goal programming. The application of the results of this study allows pharmaceutical decision makers to handle two goals simultaneously, where one objective is to achieve a target return and another is to keep the cost within a finite annual budget. Finally, the numerical results for portfolio optimization are presented and discussed.https://www.mdpi.com/2227-7390/9/18/2339portfolio optimizationmulti-objectiveuncertaintypharmaceutical industry |
| spellingShingle | Mahboubeh Farid Hampus Hallman Mikael Palmblad Johannes Vänngård Multi-Objective Pharmaceutical Portfolio Optimization under Uncertainty of Cost and Return Mathematics portfolio optimization multi-objective uncertainty pharmaceutical industry |
| title | Multi-Objective Pharmaceutical Portfolio Optimization under Uncertainty of Cost and Return |
| title_full | Multi-Objective Pharmaceutical Portfolio Optimization under Uncertainty of Cost and Return |
| title_fullStr | Multi-Objective Pharmaceutical Portfolio Optimization under Uncertainty of Cost and Return |
| title_full_unstemmed | Multi-Objective Pharmaceutical Portfolio Optimization under Uncertainty of Cost and Return |
| title_short | Multi-Objective Pharmaceutical Portfolio Optimization under Uncertainty of Cost and Return |
| title_sort | multi objective pharmaceutical portfolio optimization under uncertainty of cost and return |
| topic | portfolio optimization multi-objective uncertainty pharmaceutical industry |
| url | https://www.mdpi.com/2227-7390/9/18/2339 |
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