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Case Study

Assessing acquisition targets to leverage on synergies

Our client wanted to license a product pipeline from another company through BD&L process. They wanted to evaluate the product’s potential opportunity across its mechanism of action

Objective

To provide overall valuation of product and strategic insights around:

  • Revenue potential
  • Strategic asset management
  • Value add to existing portfolio

Approach

We evaluated the product and its opportunity using the following steps:

  • Evaluated probable indications based on product mechanism
  • Shortlisted indications based on patient potential and overall opportunities
  • Filtered indications based on synergies with current assets
  • Built forecast model structure that would suit the product and its indications
  • Formulated assumptions for market share and pricing based on analogues & primary market research
  • Built forecasts backed by advanced analytics

Outcome

  • Our assessment included analysis around:
    • Product’s market landscape
    • Targeted patient pool
    • Pricing of product
    • Multiple forecast scenarios based on various market events
  • We also gave them possible revenue simulation scenarios for each indication
  • This provided the client with strategic solutions (e.g. cannibalization and synergies) and rationale to take decision on licensing

Client benefits

Client used our analysis and forecasts in a workshop with senior leadership. It served as the central document for an intense brainstorming session which helped them to:

  • Understand insights about various opportunities they have at hand
  • Decide which strategy they should go ahead with in future acquisitions and relationships

Size SF right to get $ right!

A global pharmaceutical company wanted to expand their Sales Force (SF) size to fuel revenue & profit growth ($) for their pain management product. They also wanted to ensure that the decision was in line with industry benchmarks and target-customer based analysis

Objective

  • To restructure the existing sales force and provide sales force size numbers for promoting new & growing non-opioid pain management drug in USA market
  • To recommend the optimum investment in sales force in line with industry benchmark

Approach

  • We analyzed the existing SF structure and recommended merging three different types of sales reps for maximizing performance
  • We leveraged multiple approaches to estimate the sales force size:
    • Cost of sales
    • Same as last year
    • Workload buildup
    • Target customer focused

Outcome

  • We provided sales force estimate in terms of:
      # of sales rep based on convergence of various approaches
      # of managers
      Target customers
  • Over and beyond, we suggested to consider kickers and contests in incentive compensation plan for reps by using the budget saved in the restructuring process

Client benefits

  • Our agile approach ensured that we completed the project in expediated timeline of 2 weeks
  • It resulted in faster decision making by C-level leadership, because the estimate was already cross validated by multiple sizing approaches
  • Also, it led to increase in profits, 5% of net revenue savings, due to merging of the three different types of sales force

Enabling change to achieve competitive advantage

One of USA’s top pharmaceutical company had a certain Product X. It was a biologic which has recently lost its patent protection and was marketed in multiple indications. The company wanted to know LCM opportunities available for this drug, in a new indication along with a new route of administration (RoA)

Objective

  • To conduct a thorough analysis and identify LCM opportunities for Product X in a new RoA
  • To identify the ideal delivery system and carrier for the product, depending upon the viscosity and molecular weight of the Product X

Approach

A multi-step approach was used to provide the client with all the required information:

  • Mapped out existing RoAs and devices for biologics
  • Identified novel RoAs and devices under development
  • Identified delivery carriers for products with similar viscosity as Product X
  • Analyzed all delivery techniques and carriers to find the best suitable combination according to the molecular weight and viscosity of Product X
  • Gathered insights on patient convenience

Outcome

  • We analysed the data and shortlisted best-fil options
  • Best-fit options for novel delivery devices and carriers were chosen after considering the following:
      Ease of use
      Scope for patent extension
      Probability of entry of ‘me too’ products
      Pricing and competitive advantage
      Cost vs. benefit analysis

Client benefits

  • The analysis and findings helped the client in better understanding the current and future delivery technologies most suited for Product X
  • Our insights helped the client in strategy planning
  • It also laid a platform for better discussions with their R&D and strategy team, enabling them to discover new ways to approach LCM strategies for Product X

Exploring untapped opportunities

One of the leading players in the injectable drug delivery space wanted us to investigate the potential of a new market. They had very limited presence in this country, that too, only via a joint venture. They wanted to assess the potential of this market, to decide if they should expand their presence there beyond the existing joint venture

Objective

To help the client investigate this new market and understand its environment in terms of:

  • Market dynamics
  • Competitors
  • Potential opportunities

Approach

The following factors were covered in our assessment:

  • Region specific market assessment to understand and investigate the overall market dynamics
  • Identified key current market trends, players and products
  • Monitored competitors’ presence, activities and other market specific nuances
  • Identified unmet needs
  • Provided region specific pipeline analysis and identified opportunities

Outcome

Our detailed report included:

  • Outlook on various direct and indirect factors that broadly shape the market space in that country
  • Understanding the overall pharma market space and its key trends, disease prevalence, demographics etc.
  • Competitive landscape for inline and pipeline products
  • Identify trends and unmet needs that are relevant for our client
  • Opportunity assessment from client perspective leveraging existing connections in this country
  • Client fit in the market scenario: upsides and downsides

Client benefits

  • The report helped the client understand the market scenario and served as a first point of information for all basic queries
  • It helped client to identify and target low-hanging opportunities by leveraging its existing market reach and connections

Discovering the truth behind hypothesis

A multinational pharma company acquired a new pipeline product through a BD&L process. They wanted to better understand the products current use, typical patient pathway, challenges and unmet needs. All of this would in turn help them to develop the right strategy and positioning

Objective

Firstly, PMR was required due to :

  • The exploratory nature of the business objective
  • The lack of secondary data
  • Need to validate assumptions about current agents

To conduct in-depth interviews with key stakeholders in the hospital and physician office setting

  • This required a custom recruit due to the unique audience involved who are not typically available in panels

Approach

  • Hypotheses were build based on our existing market knowledge and were further tweaked after detailed discussions with the client
  • Market objectives were listed and defined
  • Questionnaire was fine tuned to match the unique needs

Outcome

  • Hypothesized challenges with existing products were substantiated with the help of the PMR findings
  • Opportunities were also identified around the following key points:
    • Logistics, stability of supply
    • Reimbursement status
    • Manufacturer support programs
    • Patient information
    • Right positioning of the product

Client benefits

  • The report helped the client to better understand the true preferences and issues of the new product’s unique market
  • As suggested, they decided to further investigate by conducting a quantitative market research survey to assess preference share for the new product vs. existing options using a pre- and post-allocation exercise approach

Invest or divest?

A large multi-national pharmaceutical company recently acquired a company (one of the biggest acquisitions in the industry by value). They wanted to evaluate the market potential of a pipeline asset that it was gaining via the acquisition, in a disease indication naïve to them, so that they could decide on retaining vs. divesting the product later.

Objective

  • To help the client navigate this invest-or-divest dilemma
  • To educate the client’s analytic team on following:
    1.  Market setting: the attributes of the acquired product, the disease area it is being developed for etc.
    2. Competitor landscape
    3. Forecast report on the product’s revenue potential

Approach

  • We conducted thorough secondary research on the acquired product, disease area, competition, healthcare trends and potential future events and built a robust forecasting model
  • Our research included review of medical literature, clinical trials, peer reviewed articles, syndicated reports, annual reports of competitors and coverage of the major medical conferences in the disease area of interest

Outcome

Our detailed report included:

  • Information on therapy area, disease pathophysiology and current treatment algorithms
  • Competitive landscape for inline and pipeline products
  • Detailed attribute analysis of the key competitor products
  • Market value of inline products and market potential of the pipeline competitor products
  • Detailed forecast for the acquired product of interest
  • Our recommendation on investing in the product and developing it further vs. divesting it

Client benefits

Based on our recommendations, the client decided to do a further deep dive on the long-term revenue potential of the asset and retained us for that engagement as well

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