Strategy

KROMITE works with you to develop strategies that create value while managing risk. We help you identify the key value drivers and understand the vital risk factors to develop innovative strategies, which incorporate contingencies that deal with future events while maximizing the organization's goals.

KROMITE has helped develop a wide range of strategies, including:

New Product Development
Therapeutic Area
Indication Sequencing
Portfolio
Licensing

We help you map out a clear plan of action that balances long-term value creation and short-term goals through a facilitated process that engages key stakeholders to generate organizational buy-in and create total transparency.

Portfolio Management

KROMITE is recognized as the leading expert in portfolio management in the healthcare industry; some of the most successful institutions in this area use processes implemented by us or count on us as their go-to analysts for complex portfolio challenges. Our approach is backed by years of industry specific experience in implementing portfolio prioritization and optimization systems. We can help you, for example, perform or develop processes for

Optimization
Gap Analysis
Balance, and
Prioritization.

KROMITE is unique in that it uses both financial valuation (e.g., for late stage projects) and non-financial valuation utilizing Multi-Objective Decision Analysis as part of its customized portfolio processes. As a result, KROMITE has created millions of dollars in value for its clients by helping them focus on assets that maximize value while managing risk. We bring together top-down portfolio strategy and bottom-up project assessment to develop robust processes that can meet short and long-term organizational deliverables. Every one of our portfolio management processes is customized to meet your needs and to align it with your organization's culture. Our goal is ensure that you have functional and sustainable processes and tools in place.

Multiple Objective Decision Analysis

KROMITE is the leading practitioner of Multiple Objective Decision Analysis (MODA) in the healthcare and life science industry. We use MODA to help clients gain clarity around decisions and derive valuable insights for decisions involving multiple conflicting objectives, and situations where the value of the assets cannot be quantified using traditional financial approaches (e.g. Net Present Value {NPV}, Internal Rate of Return {IRR}), and when transparency is critical. KROMITE has applied MODA to a wide range of problems, including prioritizing early stage pharmaceutical project portfolios where NPV is less credible but prioritizations must be made. KROMITE uses MODA as a framework to explicitly capture the objectives of the organization and distill them to specific metrics, which are measured for each project (e.g., "Differentiation" can be one measure for the organizational objective of Innovation).

We use a systematic facilitation process and an analytical method supported by the Society of Decision Professionals as well as the Decision Analysis Society. Working with our clients, we develop definitions for each metric, establish the importance (or weight) for metrics and objectives, and develop value functions - all of which can be used to efficiently determine the value of each asset in the context of the overall objectives while taking into account risk and uncertainty. New insight can be gained by using MODA for resource allocation, project prioritization, portfolio optimization, and portfolio balancing. [Link to white paper "Deciding which project to fund"]

See "Deciding which Projects to Fund" for more details.

Modeling of Complex Systems

KROMITE uses discrete event simulation modeling to help you gain insight into throughput, constraints, costs, and resource needs within a complex system (e.g. R&D, Manufacturing, Distribution). We have built simulations for a number of pharmaceutical and agricultural companies and we specialize in customized simulation models that generate insightful output as well as real-time visualizations of the system under study. This type of modeling allows for what-if analyses at a cost that is orders of magnitudes less than building a sample pilot system.

In the healthcare and life science industry, simulations help with: pipeline analyses that incorporate projects and resources from research to launch, and impact assessment of key events such as mergers, spinoffs, and licensing. These models identify capacity constraints and over-capacity likelihood in complex operations, such as R&D, in the presence of uncertainty. They also help with resource management, infrastructure what-if analyses, portfolio management, and long-term financial forecasts.

Benefit-Risk Analysis

Benefit-risk assessment is a fundamental element of drug development with the aim to strengthen decision making for regulators, payors, providers, and patients. Customized benefit-risk assessment can provide useful information for proactive intervention in health care settings, which could save lives, reduce litigation, improve patient safety and health care outcomes, and lower overall health care costs. We have been focusing on post approval benefit-risk assessment methodologies.

We argue that a structured benefit-risk assessment is not simply a statistical exercise, but should be a multi-disciplinary effort involving experts in clinical science, patient advocacy groups, safety assessment, decision science, health economics, epidemiology and statistics. Multiple stakeholders, each with their own objectives and perspectives, are involved in making treatment decisions. Instead of ignoring the different perspectives and insisting upon one set of benefits and risks and one way to measure their impact, we believe we need to embrace the difference and help all stakeholders make consistent, well-thought out decisions.

Supporting Services

Facilitation

KROMITE's team has years of experience working with cross-functional teams, including groups of executives. Several of KROMITE's members have taught important soft skills, such as facilitation, to classes of experienced analysts over the years. We have found that poor facilitation can impede or even stop the decision making process. We use multiple techniques and industry-specific insight to reach innovative solutions and consensus in a timely manner, while avoiding common pitfalls associated with group decision-making and motivational and cognitive biases.

Elicitation

Our team has learned, thanks to the many psychological researchers and decision analysts who have published in this area, how to "extract" key information from internal or external experts and avoid or mitigate the many biases which can hurt the validity of expert estimates. In R&D, the projects are, by definition, innovative and untested. Therefore, experts are one of the main sources of information and insight.

Financial Valuation

KROMITE utilizes state-of-the-art analytical methods to value assets, beginning with an appropriate level of revenue forecasting. We firmly believe that all point estimates of future revenues are dangerous if used for decision-making. Estimating the range of revenues is more relevant to a decision and is more realistic. KROMITE consultants work with project teams or use independent research to assess the key drivers of value uncertainty, where value may be NPV or other chosen value measures. One key uncertainty driver is the technical risk present in all R&D projects. Uncertainty in cost, timing, market share, pricing, market access, and reimbursement can all play a large part in the ultimate value a product brings to the company. Our valuation technique measures the impact of R&D risk, cost, value, and timing on the decision under consideration to deliver an estimated expected value of the asset, as well as a better understanding of the likelihood of outcomes and their impact on the project. This allows you to consistently compare projects and to develop contingency plans in a challenging and changing business climate.

Risk Assessment

KROMITE has been helping companies assess and then mitigate or manage project (indication or single use), compound, and portfolio risk for over nine years. Once the type of risk (financial, technical, other) and the level of risk (project, compound, etc.) have been identified, KROMITE will work with the teams and/or experts to quantify the likelihood of events occurring. The impacts of those identified risks will also be determined either in a financial sense or non-financial sense (a compound financial may have both a financial impact as well as an impact on a current partnership or the reputation of the company). Technical risks have become a very important element of the risk-adjusted value of a project or compound. KROMITE has access to valuable benchmarks and often uses these to check the subjective assessments of involved experts.