Analysis of neurodegenerative disease indications using risk adjusted net present value

Pharmaceutical drug development is a costly and risky venture characterized by low clinical success rates. The neurodegenerative disease market segment has the highest drug development costs and the lowest clinical success rate of any therapeutic disease area. Small biotechnology companies that specialize in the neurodegenerative disease market must carefully select the appropriate disease indications to pursue. This study examines the neurodegenerative disease market and analyzes the attractiveness of drug development in four key market indications. The purpose of this study is to identify the most economically viable neurodegenerative disease indication for a small biotechnology company to pursue. Recommendations are made based on a risk adjusted net present value analysis that assesses the drug development risks, costs, and potential value of each disease indication.