Selection of licensing candidates in the pharmaceutical industry: an application of the analytic hierarchy process

The ethical (prescription) pharmaceutical industry depends on a stream of innovative, patent-protected products to maintain growth and profitability. With Sterling Drug's entry into a new therapeutic area (oncology, the study and treatment of cancer), licensing and research collaborations have become an important part of the process of developing a pipeline of potential new drugs. The application of the analytic hierarchy process has led to improved articulation of the relevant criteria and better definition of organizational procedures, thereby benefiting Sterling's decision-making process.