SiRM, L.E.K. Consulting and RAND Europe win tender for study into the financial ecosystem of medicine development
Together with L.E.K. Consulting and RAND Europe, SiRM is conducting a study into the financial ecosystem of medicine development. The research will focus on the evolution, risks, tradeoffs and investment decisions in the different phases of medicine development and identify and characterize the different players active in this field. Additionally, we will consider how the financial ecosystem may evolve in the future.
The research is tendered by the Ministry of Health of the Netherlands. SiRM has formed a collaboration with L.E.K. Consulting, a global management consulting firm, and RAND Europe, an independent not-for-profit research institute. Based upon the quality of their proposal the Ministry has decided to grant the research to this collaboration.
The research will be conducted over the coming 15 months and will focus on the financial ecosystem of medicine development. Different players in the ecosystem will be mapped, as well as the financial instruments through which investors fund R&D at the different stages of drug development. The source and extent of R&D investment will be analysed, as well as the revenue and profit that result from such investment. We will be examining how value is created and lost across the R&D process and elucidate how the inherent risk in R&D influences investment strategies, decision making processes, and return on investment thresholds. The study will focus on the developments in the last decade, but will also investigate different possible directions for the financial ecosystem in light of future scenarios.