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Vanguard's Model Evolves

Executive Summary

Vanguard's founders believed they could pick preclinical compounds destined to become successful drugs and develop them cost-effectively with a virtual organization using CROs. To get access to other companies' compounds, Vanguard agrees to fund development--and to give the originator the option to reacquire the drug for marketing. But the original model's weaknesses--high risk, high cost, and perhaps not so high a return--have become apparent. Vanguard's trying to adjust the model appropriately.

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