Development of a business case for project profitability in the pharmaceutical industry

With continuously growing markets and steady research potential the pharmaceutical industry is a complex sector always seeking for innovative solutions. The so called XStraw® is a drinking straw containing solid medicine which has been designed to facilitate the oral consumption of medicine for children or elderly people. According to market research results the new technology can provide benefits to patients all over the world and sustainably improves the pediatric and geriatric health care system. DS Technology is a start-up company, holding patents for the innovative drinking device with the objective to out-license the technological know-how to pharmaceutical companies on a global level. The company has created a partner network, combining all the required equipment and services for customers in respect to machines, consumables and drug development facilities. Currently the focus of DS Technology is to develop an efficient market entry strategy for successful project acquisition. Projects for new product or application introductions within the pharmaceutical industry are time and cost extensive with a high amount of potential risks. Therefore, DS Technology has designed business models to address customers and provide a holistic solution to varying requirements. Due to the novelty of the concept, no reliable data in respect to the project management, the project costs and for the project profitability are available. In order to solve that problem this thesis analyzes the proposed business models in order to draw conclusions about the profitability of the strategic alternatives under different circumstances. Finally recommendations for a successful strategy selection are proposed according to the specific customer requirements or needs.