A Likelihood Approach for Fitting Nonlinear Mixed-Effects Models to Pharmacokinetic and Pharmacodynamic Data Douglas Bates Department of Statistics University of Wisconsin - Madison Nonlinear mixed-effects models are widely used in the analysis of population pharmacokinetic and pharmacodynamic data, providing valuable information for drug development and for evaluation by regulatory agencies. Over the years many algorithms for obtaining the parameter estimates in these models have been developed and incorporated in various software packages. Estimates from such algorithms are often compared to assess which are the "better" ways of determining the estimates. Unfortunately, concentrating on algorithms and estimates provided by them misses the point. A nonlinear mixed-effects model is a statistical model and we define the estimates from such a model as those parameter values that optimize a criterion, such as the log-likelihood or the posterior density for some prior on the parameters. If we want to compare algorithms that are intended to produce maximum likelihood estimates then we should settle on a reliable way of evaluating the likelihood for a model/data set combination and compare the likelihoods at the estimates provided by different algorithms. More importantly we should evaluate the precision of parameter estimates according to the change in the likelihood. I'll describe how this can be done. Regretably, doing so leads to the conclusion that many widely-accepted methods grossly underestimate the variability in parameter estimates for such models.