By treating the biomarker-based CDx molecular test as a Real Option, the additional economic value arising from organizational choice and strategic risk management is taken into account.
CDx Economics
- Focus of the Firm -Constructing decision trees of the drug discovery process allows two scenarios to be modeled: 1) empirical all-comers without patient screening; and 2) efficacy stratification with CDx testing.
From analyzing the pharmacoeconomics of CDx-stratified targeted therapeutics, an Adjusted Present Value (APV) in excess of $250 MM is created for select cancer cases.
