Quantification
Let us turn the problem into a number you can check yourself
Below is an illustrative portfolio of six programs at a mid-size developer with a $400M annual R&D budget. The structure is what matters: fill in your own figures and the arithmetic behaves the same way.
| Program | Stage | Annual capital | Evidence signal since last review | Capital at risk of misallocation |
|---|
| Program A | Phase II | $96M | Biomarker response narrower than modeled | $24M per quarter |
| Program B | Phase III | $150M | Comparator standard of care shifting | $37.5M per quarter |
| Program C | Phase I | $40M | Regulatory precedent now more favourable | Underfunded relative to updated value |
| Program D | Preclinical | $34M | No material change | Stable |
| Program E | Phase II | $50M | Enrolment slower than plan by 5 months | $12.5M per quarter |
| Program F | Phase I | $30M | Manufacturing scale-up risk rising | $7.5M per quarter |
Capital exposed to a decision that is one quarter behind the evidence
$81.5M per quarter — 20.4% of the annual R&D budget
The arithmetic, in four lines
- 1. Annual R&D budget: $400M. Quarterly deployment: $100M.
- 2. Programs where evidence moved but allocation did not: 4 of 6, carrying $326M annually.
- 3. One quarter of spend on those programs: $81.5M.
- 4. Recovering even 15% of that through earlier reallocation: about $12.2M per quarter, roughly $49M per year.
This is an illustrative modeled calculation using a composite portfolio built from published industry benchmarks. It is not a NUVRENZA customer result, not a guarantee, and not a forecast. Substitute your own budget and program mix to produce your own figure.