Pharmaceutical Industry – Business Planning & Financial Forecasting Model
Originally published: 06/12/2024 10:29
Publication number: ELQ-33327-1
View all versions & Certificate
certified

Pharmaceutical Industry – Business Planning & Financial Forecasting Model

Pharma Forecasting Model

Description
Objective : The main objective of this model is to develop a 10 year Forecast for the Business, both in terms of market/business FRC and in terms of financials FRC. Moreover to provide a Valuation for the Business by using a Discounted Cash Flow Model.
Business Forecast : The model supports a forecast concerning 3 distinct therapeutic areas in which the company may operate, each consisting of up to 3 segments (e.g. could refer to line of therapies, or any other segment as defined). 
*As a 1st step the market is forecasted by tacking into account the factors: Prevalence Rate, Diagnosis Rate, Treatment Rate, as well as, the break-down to each segment of the market.
** Following this, the assumed Market Share evolution per product is inputted for each segment. The model supports 10 company products and 5 competitive products. Taking into account also the Compliance Rate, and the Units per Patient per Month, the Sales Volume in units/packs are calculated per product.
Finally, by inputting the Gross Prices per product and the Gross to Net Discounts, we come up with the net revenue per month/year.
Financial Forecast : Using as an initial input the Net Revenue per year calculated in the Business Forecast, a 10 year Financial Forecast is performed for the 3 main Financial Statements: Income Statement, Balance Sheet & Cash Flow Statement. Moreover, one can see the main Financial Ratios in the relevant worksheet.
Business Valuation : A Business Valuation is performed in the relevant worksheet using a Discounted Cash Flow model to calculate the intrinsic value of the Company.
The required Return on Equity is calculated through the Capital Asset Pricing Model (CAPM). The WACC of the firm is then calculated taking into account also the cost of Dept.     

This Best Practice includes
1 Excel File; 1 PDF File

Acquire business license for $89.00

Add to cart

Add to bookmarks

Discuss

Further information

The main objective of this model is to develop a 10 year Business and Financial Forecast for a Business operating within the Pharma Industry. The model includes a Business Forecast from Prevalence to Net Revenue, as well as a fully comprehensive 3-statement Financial Forecast. Moreover a Business Valuation is performed using the Discounted Cash Flow method.

Companies Operating within the Pharma Industry.


0.0 / 5 (0 votes)

please wait...