---
title: Due diligence of a company's commercial forecasts
description: Due diligence of a company's commercial forecasts to inform an investor on key risks to their valuation calculations.
---

[Case Studies Archive - Alacrita ](https://www.alacrita.com/case-studies)

# [Due diligence of a company's commercial forecasts](https://www.alacrita.com/case-studies/due-diligence-of-a-companys-commercial-forecasts)

 Written by [Cort](https://www.alacrita.com/case-studies/author/cort) | Feb 15, 2023 4:45:18 AM

#### Challenge:

A private equity investor was considering a transaction involving a speciality pharma company dedicated to pediatric medicines. The target company had successfully launched a major product and had a pipeline of projects at various stages of development. The investor asked Alacrita to undertake due diligence of the company's commercial forecasts to inform them of key risks to their valuation calculations.

#### Solution:

Alacrita based the due diligence analysis on an analysis of the environment for pediatric medicines. The investor had perceived that the area was being driven by medicines for children legislation on both sides of the Atlantic, but we pointed out that the various regulations (e.g. PUMA in the EU) had so far proven ineffective in stimulating specialized development of stand-alone pediatric drugs. As a result, the target company was effectively developing and commercializing a range of branded generic products which carried significant commercial uncertainty. Our DD report contributed to our client's decision not to progress the deal.

#### Due Diligence Services

Alacrita's due diligence experts have conducted over 200 major assignments for large pharma, biotech, universities and investors, underpinned by our ability to ensure each due diligence exercise is supported by individuals with the precise expertise required for a complete, thorough and accurate assessment.

[Learn more](https://www.alacrita.com/our-services/due-diligence)

[View full post](https://www.alacrita.com/case-studies/due-diligence-of-a-companys-commercial-forecasts)

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