Pipeline Phase Transition Rate
Percentage of candidates advancing from one R&D phase to the next (e.g. Phase I to II)
What is Pipeline Phase Transition Rate?
Pipeline phase transition rate is the percentage of drug or product candidates that move from one development phase to the next. It shows how many candidates survive each stage of research and development.
Most candidates fail somewhere along the way, so transition rates help estimate how many early projects are needed to produce a successful product.
How this KPI is measured
- Function
- Product & Engineering
- Sub-function
- Pipeline
- Industry
- Pharma & Life Sciences
- Type
- Lagging
- Impact
- Operational
- Unit
- %
- Measurement frequency
- Annual
- Formula
- (Candidates advancing to next phase / Candidates entering current phase) × 100
How to calculate it
Divide candidates advancing to the next phase by candidates entering the current phase, and multiply by 100.
For example, if 20 candidates entered phase 2 and 6 advanced to phase 3, the transition rate is 30%.
Measure for each phase separately, and use the results to plan the size of the pipeline and budget needed at each stage.
Where it is used
Planning the portfolio
Estimate candidates needed.
Managing risk
Understand attrition.
Allocating R&D budget
Fund the right stages.
How to improve it
Tips and common mistakes
- Rates differ by therapy area and type of candidate.
- Small numbers make rates volatile.
- Failing early is cheaper than failing late.
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