CDD on Novel Handheld Diagnostic Device Manufacturer
Financial Services
35
10
3
Voice-of-Customer Research
KOL Identification
Pricing Strategy
Revenue Projection
Due Diligence
Novel Technology Commercialization
Objective
A global healthcare investment firm wanted to perform a commercial due diligence (CDD) prior to investment in a company producing a novel handheld diagnostic.
Our Approach
Secondary Research
- Analyzed competitive landscape, including technical strengths, and shortcomings of existing diagnostic offerings
- Identified M&A, investment, and cash flow comparable benchmarks for valuation triangulation (DCF, company comparison, and funding)
Primary Research
- Conducted 35 in-depth stakeholder interviews with clinical and technology experts to assess pain points, key users, and adoption nuances of the product across >10 primary clinical settings where this technology is applied
- Identified relevant stakeholder advocates to engage for adoption
- Tested pricing sensitivities and willingness to pay for key product features to model product adoption across multiple price points
Quantitative Analysis
- Calculated current / projected target company valuation, including a sensitivity analysis key assumptions
- Projected revenues by key customer segment to 2027 and model parallel expenses including R&D costs, manufacturing COGS, and workforce expansion
Outcome
Key takeaways from DeciBio’s presentation to the client team included:
- Developed consensus with target company management projections to demonstrate profitability and rapid growth within 5 years post launch
- Global investment firm decided to invest >$200M in follow-on funding; target company is thriving and clinically present
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