Cases

Conducting a Diagnostic Study of a Pharmaceutical Company for a Private Equity Firm

Challenge

The client, a large private equity firmis a financial organisation based in Kuwait and involved in areas such as banking, real estate, trade finance and investments. The company had invested in a Jordanian pharmaceutical company that manufactured IV and hemodialysis solutions and had plans to start manufacturing insulin. However, the client was considering increasing its investment in the pharmaceutical company and turned to UC to have an independent view on the growth potential of the company before proceeding with this investment.

Our Approach

To conduct a diagnostic study of the pharmaceutical company for the client, UC adopted the following approach:

  • Gained understanding of the operations and future plans of the pharmaceutical company by meeting key management personnel
  • Conducted extensive primary research in the local market to understand the following parameters -

    1) Competitive landscape

    2) Perception of the companies’ products in the market

  • Commented the plausibility of the companies’ target by using the internal financial documents and the internal forecasts of the company
  • Re-estimated the financial projections of the company based on the feedback from the market and the internal cost structure of the company.

Impact

The client received a business model with financial projections of the pharmaceutical company, outlining its ability to generate profit over the next 5 years. UC also provided the initiatives that the company should undertake to maximise its profitability, such that it will be a worthwhile investment for the client.