AVOS Large Cap Pharma Performance Outlooks
Characteristics of Large Cap Pharma Performance Outlooks (LCPPO)
- Strategic tool for understanding and valuing large Pharma/Biotech within a strategic and financial framework
- Proprietary Pharma/Biotech company scoring based on comparative competitive analyses of major prescription drug Portfolios and key prescription drugs based on integrated performance metrics
- Identifies those major prescription drugs with the widest range of investment sell-side analyst forecasts and analyzes the source of ambiguity. AVOS asserts that the spread of analysts' drug forecasts is a viable proxy for risk.
- Uses proprietary analytical techniques such as portfolio momentum and analyst ambiguity analysis to characterize the performance of the major prescription drug Portfolios and of key products therein.
- Academically validated to exhibit meaningful statistical correlation to market capitalization trends
- Facilitates scenario planning/custom analysis
Benefits of Large Cap Pharma Performance Outlooks (LCPPO)
Standardized data for systematic analysis. AVOS goes to great lengths to aggregate and clean sell-side investment analyst forecast data. You can have confidence that our work rests on a solid foundation of aggregate data that is rigorously consistent with respect to product names or income statement figures. It is this standardization of sell-side research that makes systematic analysis possible.
Unbiased, unfiltered analysis. LCPPO is free of the unintentional subjectivity that may color the forecasts of individual product managers or sell-side analysts. Product managers are by nature single-minded champions of a particular product or franchise. They also tend to be reactive to events of the moment. Sell-side investment analysts, while more strategic in outlook, are often limited by a frame of reference geared to their universe - the companies and products covered by their firm.
Must-have data for senior decision makers. Senior executives at the corporate and business area level need to understand how their company is performing now and 5 years out. They need to understand the dynamics of their performance in isolation and in comparison with other large-cap peers. And they need to understand it at the portfolio level and at the product level, in crisp language and in easy-to-scan visuals.
- LCPPO can increase the skill-set of heads of pharma or R&D - executives who are regularly called on to interact with the investment community
- LCPPO is a valuable resource for heads of operations or planning who are charged with keeping close watch on the operating budget and are often tasked with producing analyses of their company vs. the competition - analyzing product, Portfolio, or P&L trends.
- LCPPO can provide VPs of Investor Relations and other corporate executives with unvarnished and sophisticated insight into what the Street is saying about their company, about the competition, and about how current performance trends will play out over time.
- LCPPO uses analytical techniques that can have specific applications around the organization. For instance, AVOS has developed a particularly robust Replacement Ratio calculation. R&D or Operations heads can use their company's Replacement Ratio - a simple number - to get to the quick of productivity and R&D performance. Product Managers, Portfolio Managers, and Therapeutic Area heads can gain instant insight into the degree of risk around specific products using LCPPO's Analyst Ambiguity. These "risk spreads" on product forecasts are similar to the share price spreads provided by Bloomberg or Thomson. AVOS takes this perspective to the product level within each company and to the aggregate Portfolio level for each company within the AVOS peer group.
