Pharmaceuticals and Life Sciences case studies

Doing deals in India

  • We have assisted one of India’s leading mid-sized vertically integrated pharmaceutical company in acquiring a UK-based generic pharmaceutical company, with sales of US$ 32 million and adjusted EBITDA of US$ 5 million. The acquisition gave the Indian company front-end sales and marketing access to the highly regulated and lucrative generic medicines market in the UK and Europe.
  • We have also assisted many global and domestic pharmaceutical companies with accounting, financial, tax and commercial due diligence on specified targets. Our assistance has helped global pharmaceutical companies in post merger integration and other areas.

Market entry strategy

  • We have assisted a global pharmaceutical company in partner identification for entering the Indian market. We carried out an assessment of the Indian market in the identified segment and compared it against other key global markets on several parameters.
  • We have also advised a reputed domestic healthcare company planning a foray into medical devices. PwC carried out a comprehensive market assessment covering market size and potential demand, key trends, competitive landscaping and potential opportunities and challenges.

Governance risk and compliance

  • We have assisted a leading pharmaceutical company in India in addressing concerns about inappropriate payments made to government officials and non-compliance of the client’s code of conduct. PwC worked with client’s legal counsel in performing a review of the accounting and financial records of the company.

Operations and supply chain management

  • We have worked with a leading pharmaceutical manufacturer in India in the design, development and implementation of solutions to improve throughput. The PwC team identified bottlenecks in the manufacturing process and worked with the client team to address the issue.
  • Working with the local unit of a global medical device, we have harmonised the quality system of the player with the global system and remediated critical system gaps. The effort led to the local unit receiving approval to supply to global markets.
  • PwC has worked with a leading global medical devices firm to design the supply chain strategy to support growth in underpenetrated Tier 2 markets in India. This effort involved identifying eight distinct areas of opportunity to realise the supply chain strategy and vision and crafting a three-year programme implementation schedule.

Finance function effectiveness

  • PwC has assisted a global pharmaceutical company which had acquired an Indian company in developing a spreadsheet based standard costing system for the product portfolio and enabling the use of the system through SAP. This solution provided the client with the ability to compare and evaluate cost impact of different scenarios with respect to capacity, cost elements and production mixes.

People and change

  • PwC has assisted a leading global pharmaceutical company in the development of a strategic workforce plan for their India subsidiary. The objective of the engagement was the identification and augmentation planning of organisational capabilities required to support the company’s growth plans.

Internal audit

  • PwC has assisted a leading pharmaceutical company in India that has a network of 18 distribution points and caters to 11,000 stockists and 70,000 retailers. PwC reviewed and ascertained the operation of controls at the transactional level and suggested improvements wherever required by testing transactions for authenticity, accuracy, completeness of recording and reconciliations.

Transfer pricing

  • PwC has advised a leading global pharmaceutical group in realigning its Indian operations from a contract manufacturer to a toll manufacturer. Key issues addressed in the restructuring were PE risk on account of tolling, tax holiday entitlement for tolling exports, customs procedures on change in model, regulatory aspects and exit charge considerations on change in model.

Outsourcing

  • PwC has assisted a mid-sized pharmaceutical company in the US in reducing overall fixed costs in product development by outsourcing capability to locations where costs were lower and a skilled workforce was available.