sgs_healthcare_case_studies_healthcare_devices

© 2011 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc. www.sutherlandglobal.comApril 24, 2023 1

Expert Interviews Intelligence on the Drug Performance

Expert Interviews


Pharmaceutical Expert Interviews

• The client was a leading asset management company and hedge fund in the US. The fund was looking to invest in a pharma company that was in the midst of conducting clinical trials

Client

• The client’s major focus was on understanding future performance of a drug called XXX made by a leading pharmaceutical company in the US and which has passed Phase II & Phase III clinical trials. This drug is used for irritable bowel syndrome and chronic constipation and is prescribed by gastroenterologists

• To understand the long-term efficacy of the drug, the client wanted to gain first-hand reviews from doctors involved in its trials . The client, therefore, wanted SGS to identify and interview the doctors and researchers involved in the trial of the drug

• Major focus of the study was on understanding perceptions of leading doctors on the drug and its performance in the market. The client also wished to understand various technicalities such as comparison of the drug with already-launched competing products to determine its market-competitiveness

Client Ask

• SGS identified key doctors and researchers involved in the clinical trials of the drug through a multi-pronged approach of combing social-media, identifying patient groups involved in the trials and individually reaching out to them and searching the regulatory websites of agencies involved in the trial for mention of doctors and radiologists involved in the trial

• In-depth discussions were held with the doctors and researchers to generate unpublished intelligence and make a more accurate assessment of the drug’s efficacy based on trial-results. SGS conducted 8 detailed interviews with leading gastroenterologists in the study

Sutherland’s Solution

• SGS research helped the client take a more informed call on the likely success of this drug and its ability to displace competition• Armed with this intelligence, the client was able to assess the likely impact on the company’s financials and if there was an

investment case arising from the launch of this new drug

•Benefits to the Client


Sample of the Work


Market AssessmentUS Aesthetic laser – Market Assessment

Market Assessment


Market Assessment of Aesthetic Laser Devices Market in the US

• The client, a global management consulting firm, was advising a medical device manufacturer who was planning to invest in the aesthetic laser devices market in the US

Client

• The client mandated SGS to undertake a thorough market assessment of the aesthetic laser devices market in the US and in particular

• To analyze the historical and future demand for aesthetic laser devices • To identify trends in consumer uptake of aesthetic laser treatments • To understand alternative treatments and trends in such treatments • To understand competitor landscape

Client Ask

• Using a bottoms-up approach, starting with population demographics, income and age segmentation and the penetration of various treatments, SGS sized the market for aesthetic treatments, and, consequently, the devices used for these treatments

• SGS conducted primary research with top device manufacturers to understand equipment buying process, current uptake, buyer-groups and financing needs. Analyzed the drivers of aesthetic treatments, studied the trends in procedure volume, comparison of prices of laser vs. alternative procedures

• Performed a competitive benchmarking of aesthetic laser device manufacturers on technology and cost parameters

Sutherland’s Solution

• Based on the findings of our research, the client was able to get an accurate assessment of the market’s needs, demand drivers and inhibitors, and the attractiveness of the segment from an investment perspective

• The research also helped the client benchmark valuations for similar businesses and explore buy vs. build options

•Benefits to the Client


Aesthetic procedure value estimated to grow ~50% by 2019; laser treatments account for ~17% of non-surgical cosmetic procedures

$400mn $800mn

13%

11%

32%

8%13%

2010: 30 million

5 million25 million

5.2%

(Values in $ million)

Source: SGS Research, XXX reports Note: Dummy data is provided in sample slides

(Volume in # of procedures)

U.S. Medical Laser Market U.S. Aesthetic / Cosmetic Procedures Value

Non-Surgical Cosmetic Procedures by Type of Device


Player # of patents (US)*

Distribution StrategyKey focus areas / strategy

US Non-US

40

• Direct sales• Aesthetic devices for

home-use are sold through retailers

• Subsidiaries in Spain, Portugal, France, Germany, Italy, United Kingdom, China, Hong Kong, Japan and Australia

More acquisitions to expand product portfolio

Increased focus on consumables and service

Innovative physician support programs

XXX • XXX • XXX XXX



38• Direct sales (32

employees)

• Direct subsidiaries - France, Spain, the United Kingdom, Germany, Korea, China, Japan and Mexico

• Distributors – 78 countries

Home-based products Focus on services


Focus on services, consumables and non-core customers are the key themes across laser device manufacturers

Source: SGS Research, XXX reports Note: Dummy data is provided in sample slides


• The company product related services revenue has seen a surge in 2010

• During the years the company has diversified geographically with significant revenues now coming from Europe and Asia Pacific regions

(Values in $ mn) Dec’07 Dec’08 Dec’09 Dec’10

Net Sales 141 115 54.7 189.5

Gross Margin 81% 74% 65% 47%

EBITDA Margin 18.8% 0.3% -40.8% -12.7%

Net Margin 22.2% 4.9% -43.1% -13.5%

Total Assets 269.3 281.3 270.3 374.8

Cash & Investable Securities 132.4 122.6 106.9 89.1

Debt 0.0 0.0 0.0 2.7

Capex (% to Sales) 0.6% 15.5% 34.7% 6.0%

R&D (% to Sales) 13.5% 20.2% 24.1% 24.1%

S&M**Expenditure 20.2% 26.6% 31.9% 31.4%

Sales Per Employee 0.490 0.356 0.297 0.299

Key Financials Revenue by Business Segment

Key Observations

Source: Company filings, XXX reports

Revenue by Geography

XXX company has been diversifying geographically

Note: Dummy data is provided in sample slides



sgs_healthcare_case_studies_healthcare_devices

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