DefineResearchAnalysisSynthesizeRecommendApproachTarget ScreeningSegment ScreeningIdentifying Investment SegmentTaskMAVERI...
Define Research Analysis Synthesize RecommendClient’s ProblemCompany’s growth isdifficult, because USpharmaceuticalindustr...
Segments with PriorityStakeholdersTrade offVCFobjectiveStakeholdersbenefitsDefine Research Analysis Synthesize RecommendSe...
Define Research Analysis Synthesize RecommendVCFObjective(Priority)Wellness Clinics Point of Care Diagnostics Accountable ...
Define Research Analysis Synthesize RecommendSelected Segment : POC DiagnosticsStrength•Patient Centric: Tests available a...
Define Research Analysis Synthesize RecommendApproach used for listing out the companies in this segmentHighSubstantial In...
Define Research Analysis Synthesize RecommendShort listed Companies under the selected SegmentCompanyNameProduct/ServicesI...
Define Research Analysis Synthesize RecommendStrategic InvestmentOur venture Capital Funds TargetLife Cycle of Business an...
AssessmentCoreCompetency Alpha Beta Gamma Sigma DeltaLeadership CEO is successfulCOO - head of globaloperations of largeso...
Define Research Analysis Synthesize RecommendAssessment Framework for Potential Investment targetsItem CommentsExecutive d...
Define Research Analysis Synthesize RecommendMost attractive company from ‘Potential Targets’1: Organizational Compatibili...
Thank You
Appendix1st VESSEL analysis for segment screening :(Clink on Excel sheet for details)2nd VESSEL analysis for Prioritizing ...
Appendix : Reference (Links Used)Clinical Research Orghttp://www.bionity.com/en/whitepapers/49043/outsourcing-in-clinical-...
Wellness Clinichttp://www.free-press-release.com/news/200801/1199574941.htmlhttp://thewellnessrevolution.paulzanepilzer.co...
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CASE STUDY ON CORPORATE VENTURE CAPITAL FOR PHARMA INDUSTRY FOR "DELOITTE-MAVERICK"

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Transcript of "CASE STUDY ON CORPORATE VENTURE CAPITAL FOR PHARMA INDUSTRY FOR "DELOITTE-MAVERICK""

  1. 1. DefineResearchAnalysisSynthesizeRecommendApproachTarget ScreeningSegment ScreeningIdentifying Investment SegmentTaskMAVERICK @ CAMPUSSubmitted ByTeam KolaveriSenthil kumar, Alok Sharma, Debi Prasad DashSCMHRD, PuneCASE STUDY ONCORPORATE VENTURE CAPITAL
  2. 2. Define Research Analysis Synthesize RecommendClient’s ProblemCompany’s growth isdifficult, because USpharmaceuticalindustry is facingsignificant challengesKey Factors/IssuesPatent ExpirationsHigh Pricing PressureRegulatory Scrutiny istighteningInnovation in ApproachIdentify Revenue SourcesCreate future growthoptionsSpur innovationAlready done by clientEstablishedCorporateVentureCapitalFundOur ProblemTo identify 2-3companies forStrategic InvestmentSegment identificationLay out of FrameworkPrioritize the segmentsCompany identificationApproach for Shortlisting the CompaniesAssessment Frameworkfor companiesIdentify Potentialinvestment targetWe have to doDrying drug pipelinesInitial Hypothesis Tree
  3. 3. Segments with PriorityStakeholdersTrade offVCFobjectiveStakeholdersbenefitsDefine Research Analysis Synthesize RecommendSegment Analysis : VESSEL FrameworksEconomicScenarioEconomic ScenarioGlobal EconomyImport/Export RegulationDemand & SupplyNumber of M&A deals(2011)Industry AnalysisMarket SizeMarket Growth Rate (past)Technological AdvancementsMarket share of top 5 playersGrowth PotentialFuture Potential GrowthMarket OpportunityExpansion of the verticalInnovation in ApproachStake holders involvementRegulatory BodiesCompany, ChannelsConsumer BehaviorInvestor SentimentsVCF Objective Payor ProviderBenefits Trade off Benefits Trade offSector LimitationsRevenue ModelInnovationSynergy with old businessBottom line growth
  4. 4. Define Research Analysis Synthesize RecommendVCFObjective(Priority)Wellness Clinics Point of Care Diagnostics Accountable Care OrganizationSolutionPayor Provider Payor Provider Payor ProviderBenefits Trade off Benefits Trade off Benefits Trade off Benefits Trade off Benefits Trade off Benefits Trade offSector LimitationsRevenue Model NA NA NA NA NA NAInnovation NA NA NA NA NA NASynergy with oldbusinessNA NA NA NA NA NABottom line growth NA NA NA NA NA NA NA NA NAEconomic Scenario Industry analysis Growth Potential Stake Holders InvolvementGE I/E DS MA MS MG TA T5 FP MO EV IA RB CC CB ISHealthcare ITSoftwareTele Health devicesWellness ClinicsPoint of CarediagnosticsClinical ResearchOrganizationsHealth CareTrainingAccountable CareOrganization Solution3 21good ok bad
  5. 5. Define Research Analysis Synthesize RecommendSelected Segment : POC DiagnosticsStrength•Patient Centric: Tests available at patient’s site•Offerings: 30 common tests (∼68%) of all are available.•Industry Growth rate: 18%•Technological advancement: expansion of the testmenus on the marketed diagnostic devicesWeakness•Skilled Staff: employment of clinical laboratory workersin the U.S. is expected to grow from 328,100 in 2008 to373,600 by 2018.•Cost: higher unit cost of testing than central laboratory•Multiple sample collections: for unavailable test atPOCOpportunities•New Segments: DNA testing for personalized medicine:Theranostics•Alternate diagnostic tests: expansion of the menus likeVisiongain’s analysis of the blood , coagulation testingThreatsDevelopment of home-care diagnostic equipment:Equipment facilitating Personal insulin level check andother diagnostic report at home are a potential threat forthis industrySWOTAlternateBusinessModelOur company can market drug manufacturedby it through this channel, this will be anadditional point of sale at consumer end.Skilled staff sent at customer site can suggestthe medicine depending on the test resultsand can provide prescribed medicine anddiagnostic strips for future use.
  6. 6. Define Research Analysis Synthesize RecommendApproach used for listing out the companies in this segmentHighSubstantial InvestmentMovementBuildingLongterminterestProjectLevelLongterminterestLowMinimal InvestmentX Axis: Levelof funderinterest inorganizationY Axis: Levelof resourceinvestmentby funderHigh level ofinvestment andLong-terminterest inorganizationOur VentureCapital FundInvestors IntentionThe Decision Matrix Governance Structure of the board & selection processFocus on the board of directorsoverall direction of the organizationLeadership Executive Director & Key leaders of theOrganizationVision, Mission and Challenges companyfacingDevelopment How the company raised its fundStrategy for growing or diversifying fundingbaseFinance Budgeting ProcessReport review ProcessInternal control & Management SystemLiquidity and Cash ManagementHumanResourceManagementObligation to mandated governmentregulationHuman resource function in the CompanySalary Structure and Employee RelationCommunicationscommunication with audiences orconstituenciesmarketing or external communications planFiltering of Companies is on the basisof these 6 strategic Parameters
  7. 7. Define Research Analysis Synthesize RecommendShort listed Companies under the selected SegmentCompanyNameProduct/ServicesInvestor Relation/CollaborationsScale ofOperationMBioDiagnosticsMBio Array System: combinedHIV/Syphilis/Hepatitis C Virusserology system evaluationMBio CD4 System: HIVDetectioninvestments exceeding $20 mnUniversity of California, San Diego(UCSD)Foundation for Innovative NewDiagnostics (FIND)POC Diagnostics,Innovative opticalTechnologyNiproDiagnosticsTRUEresult® SystemTRUresult: TB, HPV detectionTRUtech: CArdiac Marker,Tumor MarkerTRUtrackWalgreens, CVS, and Rite Aid Blood glucose monitoringTest stripsMonitoring accessoriesBiolyticalLaboratories IncINSTI™ tests for diseases suchas Hepatitis C and SyphilisINSTI HIV-1 Antibody TestINSTI HIV-1 Antibody TestControlsHIV-1 Antibody Testprivately-owned Canadian Companyfederally incorporated in 2002point-of-care in vitromedical diagnosticdevices.POC DiagnosticsClinical Antibody testsUltradianDiagnosticsBiologue: an electrochemicalbiosensor that measuresglucose within interstitial fluidThe Company was able to achieve thissignificant milestone for less than$2.5M in equity investment.• The State University of New YorkResearch Foundation• Rensselaer Polytechnic Institute• New York Biotechnology AssociationTechnology platform:biosensor componentsfor point-of-care testingSelf diagnostic products
  8. 8. Define Research Analysis Synthesize RecommendStrategic InvestmentOur venture Capital Funds TargetLife Cycle of Business and its mode of OperationCompany Alpha Beta Gamma Sigma DeltaRevenue Not available $1.5mn $12mn $15mn not availableEBITDA $0.2mnEBITPrevious Funding $220mn seed funding $55mn Not available need fundingFunding Turnover 21.82%Financial Decision
  9. 9. AssessmentCoreCompetency Alpha Beta Gamma Sigma DeltaLeadership CEO is successfulCOO - head of globaloperations of largesocial media companyweak advisoryboard under grad students successful CEOBusiness Modelmodel earning recurringrevenues sales driven modellicensing basedmodelservices basedmodelunclear businessmodelPartnership2 key industrypartnerships NA NA NA NAInnovation disruptive technologyinnovative social mediaplatformcloud basedtechnologyrobust rules basedplatformhighly innovativeproductSustainability strong competitors threat scalable unclear unclearMarket Dynamics proven market fast growing well established consolidated market nascent marketConsumerAdoptability strong strong strongweak due tocompetition unclearIT medium medium strong medium weakFinancialsgood investment alreadypresent mediumhigh fundingturnover unclear startup stageWork Force srtong strong stronginexperiencedstudents weakRisk Assessment low high low high mediumExit Policy(Easyto Exit) costly to exit easy to exit affordable to exit affordable to exit costly to exitHigh Medium LowDefine Research Analysis Synthesize RecommendAssessment Framework for Potential Investment targets
  10. 10. Define Research Analysis Synthesize RecommendAssessment Framework for Potential Investment targetsItem CommentsExecutive director resume RequiredOrganizational chart Essential (if they don’t have, Let them to draw)Board member list with affiliations RequiredBoard minutes for the last year RequiredMonthly financial statements forthe last yearIf they don’t have, It’s an weakness for theevaluation.Projected cash flow for next 12 Months Important (without Audit is also acceptable)Policy regarding internal controls Essential (Write up is also acceptable)Job descriptions for each position RequiredCopy of personnel policies May not be in place yetSample employment agreementand/or hire letterAt least one is required.A sample newsletter OptionalA sample of any constituent orfund appeal mailingsImportant, it can help to understand theorganization’s fund-raising capacity.Any planning documents Not required, but helpful for discussion purposesDOCUMENTREVIEW
  11. 11. Define Research Analysis Synthesize RecommendMost attractive company from ‘Potential Targets’1: Organizational Compatibility2: Organizational SynergySkillStrengthOpportunity3: FinancialConsiderationSystemStrategicduediligenceSharedValueCurrent FundingInvestment PlanSharedValueMobility, collaborative,integrated health systemStrategicduediligenceData security, privacy,ownership, SLAsSystem Scalable, automated andsecure, cost effective andflexible data sharingSkill Strong team having gripin the marketCurrentFundingInvestment PlanTotalfunding : 55MillionRevenue :12M in 2011Funding turnoveris 21%. It shows agood positivesignal for furtherinvestmentStrength OpportunityUnprecedentedlevel expertise inPharmaceuticalIT services canbe achievedthrough CloudOutsource largepharmaceuticaldata to cloudservers.Reduction indata centers.
  12. 12. Thank You
  13. 13. Appendix1st VESSEL analysis for segment screening :(Clink on Excel sheet for details)2nd VESSEL analysis for Prioritizing segments:(Click on Excel sheet for details)Appendix : Framework Reference1: McKinsey Way (book)2: ZENESYS Consulting3: Deloitte4: La Piana Associates (Assessment tool)
  14. 14. Appendix : Reference (Links Used)Clinical Research Orghttp://www.bionity.com/en/whitepapers/49043/outsourcing-in-clinical-research-the-indian-perspective.htmlhttp://blog.nasscom.in/nasscomnewsline/2009/05/emerging-vertical-%E2%80%93-clinical-research-outsourcing/http://www.frost.com/prod/servlet/press-release.pag?docid=244280315http://oig.hhs.gov/oei/reports/oei-01-00-00190.pdfhttp://www.iom.edu/~/media/Files/Perspectives-Files/2012/Discussion-Papers/Drug%20Forum-Call%20for%20CTE.pdfAccountable Care Orghttp://www.accountablecarechoices.org/news/can-accountablecare-organizations-improve-health-care-while-reducing-costs--1http://online.wsj.com/article/SB10001424052748703300904576178213570447994.htmlhttp://www.accountablecarechoices.org/news/?offset=20http://www.ncqa.org/portals/0/publiccomment/ACO/ACO_%20Overview.pdfHealth Care Traininghttp://futurehealth.ucsf.edu/Content/29/2011_11_California_Healthcare_Workforce_ACA_v2.pdfhttp://www.bizjournals.com/sacramento/news/2011/11/14/report-health-care-staffing-california.html?page=allPoint of Carehttp://www.scientiaadv.com/blog/2011/02/17/looking-at-point-of-care-diagnostics-through-a-new-lens/http://bccresearch.blogspot.in/2012/04/global-point-of-care-diagnostics-market.htmlhttp://www.visiongain.com/Report/739/Point-of-Care-Diagnostics-World-Market-Outlook-2012-2021http://www.visiongain.com/Press_Release/132/The-total-point-of-care-diagnostics-market-will-reach-20-9-billion-dollars-in-2015-says-visiongain-reporthttp://www.espicom.com/point-of-care-diagnosticshttp://www.veripath.co.za/articles/presentations/Point%20of%20Care%20testing%20-%20A%20Clinicians%20perspective.pdfhttp://www.healthcareitnews.com/news/lab-staff-shortages-call-better-point-care-diagnostics
  15. 15. Wellness Clinichttp://www.free-press-release.com/news/200801/1199574941.htmlhttp://thewellnessrevolution.paulzanepilzer.com/hof.phphttp://www.ny-forum.com/forumblog/2011/06/technology-advances-driving-health-innovation/http://www.bhsea.org.za/http://www.ibisworld.com/industry/corporate-wellness-services.htmlHealth Care IT Sofywarehttp://www.informationweek.com/news/healthcare/EMR/229500682http://blogs.alternet.org/speakeasy/2010/03/24/a-global-perspective-on-us-health-care-reform-passage/http://blogs.alternet.org/speakeasy/2010/03/24/a-global-perspective-on-us-health-care-reform-passage/Tele Health Deviceshttp://www.guardian.co.uk/healthcare-network/2012/jan/16/will-2012-telehealth-take-offhttp://www.informationweek.com/news/healthcare/mobile-wireless/231601670http://healthinformatics.uic.edu/telehealth-device-shipments-could-exceed-2-million-by-2013-says-market-research-firm-800601113/http://www.nytimes.com/2010/11/23/health/23monitor.htmlAppendix : Reference (Links Used)Company shortlisthttp://www.niprodiagnostics.com/http://mbiodx.com/http://www.ultradian.com/http://www.biolyticalus.com/company.html

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