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.
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.
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.