CLIENT RESULT

CDD on Novel Handheld Diagnostic Device Manufacturer

Client INDUSTRY
Investors
Stakeholder Interviews
35
Market Model Segmentations
10
Valuation Methods Applied & Triangulated
3
Project Details
capability
Voice-of-Customer Research
capability
KOL Identification
capability
Pricing Strategy
capability
Revenue Projection
capability
Due Diligence
capability
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 of key assumptions
  • Projected revenues by key customer segment over a five-year horizon and modeled 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 on management projections to demonstrate profitability and rapid growth within five years post-launch
  • Global investment firm decided to invest >$200M in follow-on funding; the target company is now commercially established in the clinic
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