Biotech & Medical

Biotech & Medical


Pharmaceutical Case Study

A pharmaceuticals distributor, recently acquired by private equity, was aware their systems were insufficient to provide visibility and process, but could not decide with confidence whether a Treasury Management System was a viable investment.

The main challenges were:

  • Cash balance reporting, cash flow forecasting, liquidity management and FX risk management were unachievable within desired time frames.
  • Their processes lacked a consistent sourcing and calculation process to achieve key actionable insights.
  • A Treasury management system investment size and implementation timeframe would not produce enough return on investment and they were unsure of alternative options.

Rochford’s solution included:

  • Rochford first isolated multiple workstreams for design and development within Excel that would have the highest value impact.
  • We ensured stakeholders stayed informed of development work and implemented updated processes wrapped in the system across three continents.
  • We continued to provide ongoing active management based on system outputs, from cash balance reporting through to M&A and Capex funding advice.

Outcomes:

  • We now have a weekly Treasury reporting process and have reduced time spent compiling monthly Board reports by 85%.
  • Rochford’s tools, processes and advice enable proactive cash management previously unavailable, eg funding M&A transactions through multiple revenue currencies while minimising trapped cash and required draws on revolver credit facilities.

BioTech Case Study

A biotechnology business, heavily focused on R&D
for years, was now experiencing rapid sales growth but was without a robust policy framework to protect against it’s also rapidly growing risk profile.

The main challenges were:

  • Increasing cash flow forecasts of a publicly listed entity meant that the size of potential losses from otherwise typical market moves was rapidly increasing.
  • The finance team and Board did not have direct experience developing an appropriate treasury policy.

Rochford’s solution included:

  • Rochford consulted with the CFO and presented a proposed hedging policy to the Board for approval.
  • We then worked with the finance team to execute an initial hedging strategy that ensured base compliance.
  • Ongoing proactive hedging decisions are now advised by Rochford with an appropriate product mix to ensure compliance, which we report on a monthly basis.

Outcomes:

  • Investors can encourage the Engineering, Sales and Finance team to focus on growing commercial opportunities with confidence their risk management program will scale alongside them.
  • Heightened revenue certainty from a smoothed earnings profile has reduced the business’ cost of capital and risk premium applied by investors, generating increased gains to enterprise value.