I am Joachim Greuel,
Managing Director at Bioscience Valuation,
a company engaged in portfolio management
and risk management as well.
And I'm going to talk about
and Risk Management
in the Pharmaceutical Industry.
Before I begin, a few words about myself,
I studied biology in Germany and in the UK,
and received a PhD in neuroscience
from the Max-Planck-Institute
for Brain Research.
I also hold an MBA
from the Wharton School of the University
of Pennsylvania in the US
with a healthcare management
and finance focus.
I also served as academic director
at the IE Business School in Madrid,
teaching courses related to pharmacoeconomics
and also related to portfolio managements
in the pharmaceutical industry.
Before I co-founded Bioscience Valuation
more than 18 years ago,
I worked for Bayer Pharmaceuticals
as head of a research group
for couple of years
and also as investment manager
for a venture capital fund in Switzerland.
The presentation is divided into four parts.
I will start with a short introduction
and then move on to the evaluation
of individual projects.
The evaluation of individual projects
is a prerequisite for portfolio management.
The third part will talk about
portfolio planning and risk management,
and the final section will focus on project
and portfolio value maximization.
I'll begin with a short introduction.
What is the objective
of portfolio management?
Well, first, it's to promote project
and portfolio related decisions
that are in line with company's strategy.
For example, if a company
is an expert in oncology
and develops only drugs
related to cancer,
it does not make sense
to in-license a project
from the cardiovascular field for example.
Now this may be obvious.
The second bullet may be less obvious,
but it's a very important one.
So, primary objective
of portfolio management
is to allocate available resources
to individual projects
such that overall portfolio value
The reason behind that second bullet
is that a company's goal typically
is to maximize company value
in order to satisfy
the investors in a company.
And company value can only be maximized
if the value of the portfolio is maximized.
So a good portfolio management
therefore is related to finance
and you will see in some of the later slides
that we will talk also about
some fundamental concepts of finance
because at least we at Bioscience Valuation
do not support portfolio management
that would not be linked
to financial measures.
As the portfolio
is the sum of individual projects,
this also means that
we have to focus first
on individual projects
and analyze individual projects
in order to, as a second step,
analyze the entire portfolio.
Although, the final objective
of portfolio management
is to maximize portfolio value,
there are some subtle differences
between big pharma, midsized,
and biotech companies.