Novartis Case Report -

You will have the opportunity to apply the frameworks and tools discussed in class. You will be presented with a practical business problem in the form of a case, and asked to provide your analysis and advice. You are encouraged to work in teams of 3 to 4, and you should organize yourselves in the team well in advance of the case due date.

When working with cases the questions are often similar to what a CEO or an upper level manager would ask. These questions tend to be of type "what options we have" or "what issues we are facing". Unless the number of issues or options to be discussed is clearly specified, the best way to answer for these kinds of questions is to think broadly and identify as many sensible issues or meaningful options as possible. In the main body of the report, you should discuss only the major issues and then reference appendix for issues that you consider of minor interest. Similarly, when you are asked to develop a plan to reach a certain goal, this implies that your plan should reach the goal as efficiently as possible. Also you should explain how you derived your results.

A short case report (of about 3 pages plus appendices of any length) that highlights your results to the questions asked in the case is to be turned in via blackboard's assignment section. The cut-off time on due dates is 7:00 PM Eastern Standard Time. Late submission will result in a 20% penalty of any given grade and an additional penalty of 10% per integer day including weekend and holidays. You can use any writing style in your report (e.g., APA, MLA etc). To ease the grading of the case report, you should include each question (or at least the number of it) and then the answer for that question. Regarding the format, 1.5 line spacing and font size 12 is preferred. You are free to deviate from the questions and include additional analyses that you think are valuable.

Novartis Case Questions -

Your report should provide detailed answers to the following questions:

Question 1 - Framing the Project Portfolio Management Problem

Develop a decision framework for project portfolio management at Novartis:

• What are the objectives?
• What are the constraints?
• What are the risks involved?
• What are your alternatives?

Information for project portfolio management at Novartis:

• Which information is required?
• How can it be collected?

Question 2 - Project Valuation

How would you determine the value of the "Project1" in Novartis's portfolio (data shown on tab "Project1" in "Novartis.xlsx"), a project in the pre-clinical phase? Assume that currently is year 2003.

• What is the value of this project?
• Would you execute this project?

Question 3 - Project Risk

Evaluate the risk embedded in Project 1.

• How would you assess the technical (technology) risk of this project?
• How would you evaluate the market (commercial) risk of this project?

Question 4 - Project Portfolio Decisions

Suppose that next year's R&D budget for the oncology area is $125 million. Which projects you would continue, and which to put on hold (data shown on tab "Oncology projects" in "Novartis.xlsx")?

Suppose that the following R&D budgets have been set for next year, for each of the different therapy areas:

• Oncology: $100 million
• Cardiovascular: $200 million
• Respiratory & Dermatology: $150 million
• Transplantation: $100 million
• Rheumatology, HRT: $300 million
• Central Nervous System: $100 million
• Ophtalmics: $50 million

Which projects you would continue, and which to put on hold (data shown on tab "Budget per Therapy Area.xlsx")? What is your reasoning and logic behind the selections?

Attachment:- Assignment Files.rar