Innovation

Market expansion strategies for competitive advantage.

New indications are capital allocation decisions wearing a commercial costume. Price them accordingly.

Operators in a pharmaceutical clean room beside filling equipment

A new indication looks like a commercial opportunity and behaves like a capital allocation decision. It consumes development spend, delays other programs, and only pays back if the incremental population is both reachable and reimbursed.

Price it the same way you would price an in-licensing deal: risk-adjusted, against the program it displaces.

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