Advisory service

Capital Allocation & Investment Analysis

Capital allocation analysis ranks competing investments — pipeline programs, licensing deals, manufacturing capacity, commercial launch spend — by the risk-adjusted value each one creates per dollar committed.

We help biotechnology and pharmaceutical leadership teams evaluate competing investment opportunities using objective financial analysis. Every recommendation is aligned with long-term strategic priorities and shareholder value creation.

Investment evaluation

Our analyses incorporate DCF, NPV, IRR, scenario modeling, and sensitivity analysis to compare investment alternatives and support confident capital allocation decisions.

Financial risk management

Every growing company faces financial risks, including market fluctuations, economic uncertainty, and unexpected operational challenges. Strategic financial planning involves identifying these risks and developing strategies to mitigate them. Companies can protect themselves by maintaining emergency reserves, diversifying revenue streams, and implementing strong financial controls.

Long-term financial planning

Sustainable growth requires a long-term perspective. Companies must look beyond immediate profits and consider how their financial decisions will impact the future. By aligning financial strategies with their overall business vision, companies can create a road map that supports continuous expansion and stability.

Live model

Try it on your own numbers

Adjusted NPV

$4.08B

Unadjusted

$5.54B

Implied share price

$9.34

Discount rate

10.0%

Discount rate10.0%

Swipe the table

Risk-adjusted valuation by program at a 10.0% discount rate. Illustrative data.
CodeIndicationStatusLaunchPeak salesPoSAdjusted NPV
LRA-045Major Depressive DisorderNeuropsychiatryFiled2027$1,460M80%$1.88B
LRA-201Post-Traumatic Stress DisorderNeuropsychiatryPhase 32028$1,120M68%$0.98B
LRA-114Generalized Anxiety DisorderNeurosciencePhase 32029$730M58%$0.45B
LRA-330Social Anxiety DisorderNeurosciencePhase 2b2031$480M42%$0.11B
LRA-078Chronic InsomniaSleep MedicineMarketed2026$390M93%$0.66B
Long Range Advisory gave us a financial model our executive team actually used to make investment decisions. The analysis brought clarity to our capital allocation process and significantly improved our long-range planning discussions.

VP Finance

Mid-Size Biotechnology Company

Attributed as supplied · anonymous

Answers

Questions about capital allocation

How do you decide which program to fund first?

By risk-adjusted value created per dollar of capital required. A program with a smaller headline NPV can still rank first if it needs far less capital to reach its next value inflection point.

What happens when the budget will not cover every program?

That is the normal case, and it is the point of the analysis. The model shows what the portfolio is worth at each funding level, so leadership can choose deliberately rather than by seniority or momentum.

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