Conducting Financial Analysis of a Drug Asset in Development

Bfs Consulting

Client Challenge

The client was involved in assisting its clients with predictive analytics to see emergent patterns and develop a deeper understanding of the marketplace and other business issues and improve the accuracy and effectiveness of decisions.

The client was seeking assistance in developing a financial assessment for Parkinson’s disease in US, Europe and Japan and hired UC Strategy to assist in the same


Our Approach

In order to conduct a financial analysis, UC Strategy used the following approach:

  • Conducted a detailed market assessment, this included:
  • Assessed the disease epidemiology and treatment paradigms
  • Understood market feedback on potential adoption of the new drug
  • Determined the competitive landscape for the new drug
  • Determined the addressable patient population
  • Examined the regulatory landscape, this included:
  • Understood the regulatory landscape for the drug
  • Developed pricing and reimbursement landscape
  • Estimated Cost and Revenues, this included:
  • Developed pricing recommendations for the drug
  • Developed revenue estimates for the drug
  • Assessed the estimated costs for the drug
  • Developed a risk-adjusted NPV for the drug, this included:
  • Revenue potential for the new drug based on the patient population, pricing, competitive landscape and feedback on the clinical outcomes
  • Cost estimates were developed based on costs such as cost of clinical trials, cost of manufacturing/importing and marketing expenses
  • Probability of success of the drug was accessed and presented based on market landscaping
  • Developed multiple scenarios based on changes in some of the factors of developing NPV.

Our Impact

The client received a detailed financial analysis and clarity to proceed with further action.

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