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Medium Growth Strategy Market Entry M&A Analysis

PharmaDeliver

#Pharmacy #Healthcare #Logistics
ProHub Comment

This case tests quantitative analysis and strategic thinking around emerging technology adoption in pharmacy. The candidate must work through complex capacity calculations, margin analysis, and valuation methods (NPV) while considering regulatory and strategic risks. The case builds progressively from operational feasibility to partnership vs. acquisition decisions.

Estimated Time 15 minutes
Difficulty Medium
Source ROSS
50 / 100
Your client, PharmaDeliver, is a large pharmacy that provides both prescription and over the counter medications to patients. With many new entrants in the healthcare industry, the company is evaluating ways to both improve the customer experience and invest in the future. In one initiative related to this, PharmaDeliver is exploring the use of drone delivery for its’ customers. The company has hired us to evaluate the potential use of drone delivery.

Clarifying Information

  1. They distribute a wide variety drugs directly to customers through both retail and home delivery channels. 80% of non-controlled prescription substances are delivered via home delivery
  2. The company only operates in the US
  3. The company wants to increase their deliveries by at least 15% and have total profits of at least $7B per year by using drones.
  4. The company wants this increase in the first year