Integrated financial planning plays a crucial role in the pharmaceutical industry to ensure the financial stability, efficiency and growth strategies of companies. Here is an example of how integrated financial planning can be beneficial in the pharmaceutical industry:
Scenario: Introduction of a new medication
For example, suppose a pharmaceutical company is planning to launch an innovative medication for the treatment of a previously inadequately treated disease. The development, clinical trials and approval processes have required significant resources. Now the company faces the challenge of successfully bringing the medication to market, scaling production and ensuring financial stability at the same time.
This is where the advantages of integrated financial planning come into play:
Resource allocation: Integrated financial planning enables the company to manage all relevant financial data in one central system. This includes capital expenditure, operating costs, marketing budgets and much more. By connecting this data, the company can allocate resources more efficiently and ensure that there are enough resources to increase production and get to market.
Sales forecasts: By analysing historical data, market trends and competitive information, the company can make accurate sales forecasts. This helps to determine realistic revenues from the new medication and simplifies planning for the coming quarters or years.