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Bain Medium Revenue Growth Profitability

Take Your Pills!

#Pharmaceutical
ProHub Comment

This is a revenue decomposition case that requires candidates to identify that despite consistent new patient acquisition, revenue per patient is declining due to low patient adherence and persistence rates. The case tests quantitative modeling skills through a campaign ROI analysis and qualitative brainstorming abilities around healthcare patient behavior factors.

Estimated Time 15 minutes
Difficulty Medium
Source NYU
50 / 100
Your client is Foci Pharmaceuticals - a leading rare disease pharmaceutical company - has seen US sales growth slow down over the past year. Your firm has been hired to determine the cause of this slow down and recommend ways to reverse the trend.

Clarifying Information

  1. No direct competitors
  2. The client is the market
  3. 100% of revenues come from just one drug, Nalparcin, which treats a rare type of muscular dystrophy (MD)
  4. Nalparcin was launched in 2017 and is classified as an orphan drug (meaning it treats a disease that afflict fewer than 200,000 people in the US)
  5. Nalparcin’s period of exclusivity (the period during which FDA will not approve a generic version of the same drug) will last through the end of 2024
  6. Only 30,000 patients in the US are eligible to receive Nalparcin
  7. The annual price of Nalparcin treatment is $500,000/patient
  8. Nalparcin has to be taken daily