Long range planning platform for portfolio assessment
A leading international biotech company wanted an adaptive platform which would provide a real-time depiction of the company’s financials based on the performance of 30+ product-indication combinations having a market worth of around $2B.
Viscadia was asked to design and build a scalable and dynamic long-range planning model which would aggregate the product and firm level financials from cross-functional stakeholders in order to create an all – encompassing portfolio dashboard.
Singular platform to synthesize and aggregate asset level forecasts and expenses to support long range planning.
CHALLENGES
Deal structures
- Formulating a flexible and scalable design to accommodate inputs across varying deal structures and partnerships; including but not limited to – royalty, milestone, upfront payment, cost sharing etc.
Asset standardization
- Categorizing and incorporating the plethora of assets, each varying in aspects such as stage in product life cycle, launch year, modeling complexity etc. onto a standardized template which can be leveraged to efficiently add/edit assets over time.
Portfolio management & analysis
- Aggregating asset and firm level dynamics while accounting for their respective synergies to create a singular yet comprehensive picture of the company portfolio.
APPROACH
Asset segmentation
- Classified and segmented the assets on basis of their stage of development, deal structure and forecast availability, and mapped the segments to a forecast approach and appropriate financial template.
Profit sharing
- Incorporated asset specific profit-sharing deal structures to track revenue and expenses as a result of partnerships and support a clear depiction of the financial performance.
Asset templatization
- Built a base standard template to house asset level financials and facilitate data collation and representation across all asset types – to ensure consistency and scalability.
Central repositor
- Created a one stop repository for all the financial inputs related to different assets to make the user experience more streamlined and hassle free.
Portfolio management
- Managed client’s complete portfolio through dynamic, individual asset level modelling and aggregation that caters to different cross functional needs
Analyses support
- Provided frameworks to configure multiple scenarios across different financial elements + Calculated portfolio specific KPIs (such as NPV) to measure the health of the business.
OUTCOMES
End deliverables
- Long Range Planning model with comprehensive set of insights and output views including comparator view that helped the user quantitatively compare changes between different models/scenarios with the help of waterfall charts.
- User manual providing extensive documentation to facilitate and support easy knowledge transfer and refresh in subsequent LRP cycles.
Key highlights
- Enabled leadership to measure and reflect on historical performance and plan strategies for future years.
- Established streamlined processes to manage inputs and outputs across cross-functional stakeholders.
Impact
- Built an extensive model that serves as the heart and core of Long-Range Planning (LRP) planning cycles at the client’s end till date.
- A self-sufficient automated framework that will continue to help the client to add/edit any new/existing assets for the next 5-10 years.
