D-Cube

Determining optimal pricing and valuation to empower small and mid-size pharmaceutical companies in clinical supply chain management

Students Shaherezada Ismatova, Mohammad Malik, Rebecca Omachonu, Andrew Parker, Erick Torres

Corporate Liaison D-Cube Co-founders

Faculty Advisor Habio Liu

D-Cube is a tech start-up in the biotechnology/pharmaceutical industry focused on delivering software as a service (SaaS) to clinical supply chain management. Their vision is to dismantle the barrier to entry for small and mid-size pharmaceutical companies by delivering highly specialized digital solutions, empowering them to lead the way in developing breakthrough therapeutics.

D-Cube seeks to determine the optimal pricing model for its product offering and ascertain the company’s valuation based on target market segments. The KGI team was tasked with developing an Excel-based valuation model, pricing model, and market sizes for target market segments to actionable insights for the founding team, shape strategic decisions, and prepare the company for successful investor/client engagement.

The team conducted primary research by interviewing decision-makers in the clinical supply chain and secondary research to determine optimal pricing models tailored to different market segments. Market sizing was performed for the Total Addressable Market (TAM), Serviceable Addressable Market (SAM) and Serviceable Obtainable Market (SOM). To determine D-Cube's valuation, the team developed a risk-adjusted discounted cash flow (DCF) model with best-case, base-case, and worst-case scenarios over 10 years.