Decision-Making at a Pharmaceutical Company

For a large pharmaceutical company, does the decision-making process regarding a new blockbuster drug varies with different stages of new product development?

Your job is to oversee R&D for a large pharmaceutical company. A new blockbuster drug can mean enormous profits for your firm, partly because of many years of patent protection. New drug development is an extremely large financial investment. Mistakes can be very costly because new drugs might harm customers and damage the firm’s brand name. Finally, the government’s Food and Drug Administration imposes its own very stringent oversight of your drugs at the last stage before they are approved as new products. Describe the decision-making process that you would recommend. Would it vary with different stages of new product development?