What is modeling?
Modeling refers to the use of structured, quantitative frameworks to represent real-world processes or predict outcomes in a virtual environment. In the pharmaceutical context, this includes a wide range of applications such as health economic models (e.g., cost-effectiveness or budget impact models), epidemiological models, disease progression models, and market forecasting. Models are built using clinical trial data, real-world evidence, expert input, and assumptions about future conditions.
Why is modeling important in pharmaceutical strategy?
Modeling helps companies evaluate complex scenarios, quantify risk, and inform high-stakes decisions in clinical development, market access, and commercial planning. Health economic modeling supports reimbursement discussions by estimating the value and affordability of new treatments. Epidemiological models help quantify disease burden and target populations. When grounded in high-quality data, modeling provides clarity in uncertain environments, allowing teams to test assumptions, compare strategies, and prioritize investments with greater confidence.
