Larka

Portfolio Optimisation

Customer Experience - Pharma company's product is facing generic competition. See how Larka helped its client to sort this out.

 
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Do I Have To Pull The Plug?

Context

PharmaCo has been producing a treatment in-house for the last 20 years. When the product lost its patent and companies launched a generic version, PharmaCo wished to evaluate its options: was it worth it to keep producing this treatment? If so, were there any ways to lower manufacturing costs and stay competitive?

Company Profile

  • Based in Western Europe
  • Multibillion-euro revenue
  • Several branches all around the globe
  • At the time of the project kick-off meeting, was manufacturing the finished product in-house

Larka's Scope Of Intervention

Larka performed a market assessment for this product:

  • Historical market value across the last five years
  • Determination of the competitive strength - identification of significant competitors, evolution of their market shares, determination of their strategy
  • SWOT analysis
  • Product's cost breakdown and related leverages to lower these costs
  • Elaboration of a market view for the next five years, and related rationales

Conclusion

Following Larka's report, PharmaCo was convinced the product could still bring profit. PharmaCo requested Larka to perform a cost analysis of the product, which showed that external API supply and FDF manufacture were the key cost optimisation leverages. Analysis covered:

  • In-house manufacturing process analysis
  • Identification of new API suppliers and FDF CMOs, and RFQ management - read more about our outsourcing solutions ⇀
  • Risk analysis performed for each scenario: in-house Vs. external FDF manufacturing