Investor Perspective & Strategy for a New Cryopreservation Technology
Investor Perspective & Strategy for a New Cryopreservation Technology: Opportunities in the Human Biologics, Animal Health & Agriculture Industries
The Challenge
The client wanted a better understanding of potential buyers for their novel cryopreservation equipment and technology, as well as potential acquisition partners. The target geography was the United States. Target Markets were Human Biologics, Animal Health, and Agriculture.
Project Objectives
The objectives were to: (1) Identify and size the Human Biologics, Animal Health, and Agricultural markets. (2) Create a value proposition for each vertical market. (3) To financially model and project revenue within each vertical for years 1-5, and (4) To provide strategic recommendations and potential partners.
Our Approach & Work
Our approach was to first fully understand our client’s product status, business structure and future goals and objectives. Industry key opinion leaders were identified and interviews conducted. Secondary market research was also performed to identify and size market segments within the verticals. As a result, market opportunities, current best practices, equipment pricing and key competitors were identified. We then took a top-down and bottom-up approach to financially model revenue projections for sales of our client’s products, accessories, and services over the next 1 – 5 years. Based on Cell Bridge Strategies' key findings, recommendations business strategies were provided.
Top-Down Business Case
Market segments and sizes within an industry vertical were determined. The percent of these markets segments that encompassed Cryo-equipment sales were calculated, and the percent market capture of equipment sales were modeled. The resulting market opportunity for each industry vertical was then calculated.
Bottom-Up Business Case
Here, the total number of units (equipment) software sales, metered fees and service agreements were calculated based on the total number of potential end users, i.e., Human Biologics - US based biotech companies, CDMO/CMOs and others. Assumptions were then made to estimate the potential sales for each segment per industry. The results were used to model profit, loss and return on investment for 1-5 years. The same approach was taken for Animal Health and Agriculture.
Recommendations
We suggested that our client focus on opportunities in two of the three industries, with a specific focus on human Biologics related to Hematology and Regenerative Medicine. Additional pre-clinical studies were suggested, and potential research and acquisition partnerships identified. High-level commercialization strategies and value propositions were created, along with materials for customizable investor pit decks.
Business Impact
Our client began performing additional preclinical studies in collaboration with local partners. New strategies were also created. Partnerships and M&A decisions were re-evaluated, and new directions taken. Cell Bridge Strategies deliverables were used for customized investment pitch decks.
About Cell Bridge Strategies
Cell Bridge Strategies, LLC is a global growth consulting firm that helps executives and investors in life sciences, regenerative medicine and the Advanced Therapies. Cell Bridge Strategies has the deep understanding of the technologies, products, global regulatory environments, markets, operations, and US and international growth opportunities to help companies advance their products, increase valuation while building their revenue streams. Cell Bridge Strategies delivers insights that help companies match their core assets to the optimal growth opportunities. Our comprehensive consulting services spans R&D, clinical, regulatory, financial, and commercial strategies. Learn more at cellbridgestrategies.com