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Specialised financial modelling and risk analysis
The pharmaceutical and medical technology industries are extremely competitive: companies must be able to move quickly to identify technology opportunities, evaluate them, and structure deals that create value. The pharmaceutical and medical products industries are also characterised by high risks, substantial investment levels and long payback periods. Specialised financial modelling and risk analysis, can help unravel the complex interactions between risk drivers and financial returns, providing the insights to support better decision making.
How Expantium can help
Expantium’s modelling services help management teams evaluate business opportunities and assess likely outcomes from different policy options. Advanced modelling techniques provide our clients with the insights they need to ensure that scarce resources are used to maximise the benefits to shareholders. Our goal is to help clients make better and more informed decisions in the face of uncertainty and risk, and we can help them to prioritise their activities and growth strategies. A core focus of Expantium is the provision of cutting-edge risk analysis and strategic modelling customised to the client’s needs and circumstances.
Measuring value with powerful simulation modelling
Building on the principles of expected NPV (eNPV) calculations, Monte Carlo simulation is an evaluation technique which assesses the probability of all possible project outcomes subject to uncertainty. It represents a more sophisticated modelling technique, replacing discrete choice decision trees with distributions of possible outcomes to provide a more representative reflection of possible market events: Monte Carlo simulation presents outcomes as a probability set of all possible outcomes rather than as a probability adjusted average outcome as with eNPV calculations. Where Monte Carlo simulation analysis recognizes the technological and market uncertainties neglected by NPV and eNPV, Decision Analysis with Real Options Valuation adds the possibility to assess the financial impact of alternative project outcomes and forthcoming management responses during the course of the project.
Investment firms
Expantium works directly with financial firms, including specialty biopharma investors and venture capital firms. Venture Capital is all about risk and uncertainty. With dedicated risk modelling services, Expantium helps venture capital firms get a better insight into the uncertainties and risks of a potential investment opportunity, allowing to make a more secure investment decision.
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To find out more about Expantium's work in this solution area or how we can support the growth objective of your organisation, please contact lifesciences@expantium.com, call us or complete the contact form.
