L.E.K. Consulting Interview Question: Case Interview: Pharmaco want... | Glassdoor.co.uk

Interview Question

Senior Associate Consultant Interview London, England

Case Interview: Pharmaco wants to explore expanding its

  indication to a new therapeutic area, in which it has no commercial footprint. Questions are: 1) How would you figure out what peak revenues would be if client were to expand to this new therapeutic area? 2) How would you figure out how the company should enter this new therapeutic area?
Answer

Interview Answer

1 Answer

1

For question 1:
Question needs to be addressed from a temporal perspective, considering both volume of patients and price per patient

- Estimate what volume of patients at different point in time by considering:
a) Epidemiological trends of disease, segmented by line of therapy / disease subtypes
b) Proportion of patients eligible for the drug at different times, assuming drug's indications for different lines of therapy / disease subtypes expand over time
c) Potential market share at different times, considering adoption rates, treatment algorithms and existing/new competitors

- Estimate starting price using value-based pricing i.e. Take competitor prices and add/subtract value based on differences in product profile, and triangulate. Then forecast pricing at different times: assume price reductions at each indication expansion (Use historic pricing trends of competitor agents) to estimate discounts, and assume price reductions upon entry of biosimilars

- Multiple volume and price at different time points to find peak revenues

Interview Candidate on 17 Aug 2016

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