Pallas Pharma: Finding 21% Growth
Consulting
easy45 min0 submissionsGoldman Sachs
Scenario
Pallas Pharma (specialty pharma, US) has grown at 5% a year for three years. The new CEO has committed the board to 21% growth — a gap of roughly $179 M of incremental revenue in year one.
What we know.
- Current revenue: $1118 M
- 1586 active customers
- Annual customer churn: 13%
- Estimated share of existing customers' relevant spend: 23%
- The core market is growing at 6% — so the company is roughly holding share
The CEO's instinct is to enter a new geography. The CFO thinks the answer is in the existing base. Nobody has yet sized either.
Supporting data
market
- core market growth pct
- 6
customers
- active customers
- 1586
- annual churn pct
- 13
- share of wallet pct
- 23
- average revenue per customer
- 704918
current state
- revenue m
- 1118
- growth pct
- 5
- revenue gap m
- 179
- target growth pct
- 21
Your task
Build the growth case. Provide:
- Analysis — where growth could come from, sized.
- Risks — of the options you recommend and reject.
- Recommendation — a prioritised growth portfolio for the next 24 months.
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How you'll be graded
100 points, 60% to pass.
- evaluation25
- recommendation25
- option generation25
- problem structuring25
Hint
Reveal suggested structure
Decompose growth into five sources and size each:
- Retention — reducing 13% churn
- Penetration — raising 23% share of wallet
- New customers in existing segments
- New products to existing customers
- New geographies or segments
Score on size, speed, cost and risk. The first two are usually cheapest and fastest; the last is usually slowest.