Target portfolio

The model lends itself to discussion of what if scenarios, and to this end a simulation tool ° has been produced which enables managers to probe the relationship between current or projected target portfolios and chemistry design streams (Figure 14.8). 

The appropriate number of futures contracts needed to achieve the desired lengthening of duration can be found by taking the difference between the BPV of target portfolio duration and the BPV of the current portfolio and dividing that difference by the BPV of the futures contract. As a formula this appears as... 

Figure 19.7. The off-line system The optimization model is run every month for several combinations of risk profiles, horizons, and target portfolio growth rates. (Source Consiglio et al., 2002.)...

Even with the switch to more targeted research, the Industry is almost universally criticized for neglecting the diseases of developing countries and diseases that affect very small patient numbers. Again, it is a case of "profits before people" that industry critics use to call for reform of the Industry and its practices. In reality, profits are essential to the industry s research programs across the portfolio, and both profit and revenue targets must be met, if not exceeded, if the companies are to engage in any research platform. 

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