LIFESCIENCES

The Context:
Today, the Pharma industry in India is looking to effectively diversify their offerings and create a
presence within the different areas in healthcare. This will not only help them create a
sustainable growth in the market in the future but will also help boost the revenue and relevance
within the rapidly evolving market needs.
XYZ is a multinational Pharma company with a steady topline growth rate of 6-7%. Profitability
for the client at EBITDA level is at 18-20%. XYZ’s portfolio has an ageing profile with primary
focus on the following therapy areas:

% Contribution to
Therapy Areas sales
Respiratory 14.6%
Cardiac 13.4%
Anti-infectives 22.7%
GASTRO INTESTINAL 5.5%
ANTI DIABETIC 9.0%
GYNAEC. 14.2%
Vaccines 6.0%
Vitamins/ minerals and other OTC
drugs 8.0%
Others 6.6%

XYZ’s financial profile is as follows:

Gross Revenue 930 Cr.

Discounts 1.20%
Damage/Expiry/ Returns 3.80%

Total Direct costs 27%

 Manpower 21%
Samples 3%
Sales Promo & Doctor Spends 5.50%
Traveling costs 3.50%
Distribution costs 5.25%
Indirect Overheads 9.20%

The Problem Statement:

The CEO of XYZ wants to grow revenues by ~60% in the mid-term (2-3 years) by exploring
opportunities both for the existing portfolio and beyond. The have approached you to provide
your recommendations in the following areas:
1. Where to play
2. What to disrupt
3. How to win

The Expectation:
While trying to answer the above, please detail out the following:
1. Benchmarking of P&L among top 10 Pharma companies to
a) Identify opportunities and gap areas for XYZ
b) Capture which of these top 10 companies are doing well in which area
2. Identify therapy area wise strategies of growth and existing trends in Acute, Chronic and
Over-The-Counter (OTC) markets.
3. What are the additional sources of revenue be identified to accomplish aggressive growth
vision of XYZ?
4. With the existing mature (ageing portfolio), what can be some of the services (like digital
therapeutics, POC diagnostics and many others) that can be offered at
a) Doctor level
b) Patient level
to build stickiness to this brand?
5. How can this growth be supported profitably in the mid-term (2-3 years)? Show through high
level P&L forecast (key revenue and cost elements)?
The Judging Criteria:

• Quality of presentation
• Analytical Thinking
• Creative thinking – novel idea for disruption
• Big picture thinking – ability to understand the dynamics of an industry
• Feasibility of implementation / scale-up
• Usage of new-age technologies
• Creativity in delivery