Objective and Scope
The objective of this product was to perform a market-focussed market focussed review of the Client’s potential R&D programs in food, biotechnology and agriculture.
The client had a suite of R&D programs currently under development, with Technology Readiness Level (TRL) of 2 – 6 in six areas
The project scope included a review of the Client’s R&D activities:
1. Review of the scope of R&D activities performed by the Client and associated resource allocation;
Gate 1: identification of R&D programs which will form the basis of the strategic review.
The identified R&D programmes on the shortlist were then be taken forward and are to be placed under strategic review in Gate 2 of the assessment programme.
2. For each R&D programs selected at Gate 1 CPL confirmed target end product(s) for industrial/ commercial exploitation which would enter the market analysis review.
3. For each product CPL performed an overview using a qualitative and quantitative analysis, to give an indicative assessment of market entry potential based on:
- Indicative market/segment size
- Time to market
- Indicative growth rate
- Example competitors
- Price points
- Differentiation factors
- Barriers to entry
CPL aimed to provide sufficient information to be able to rank the potential opportunities in terms of their relative potential for the Client.
4. For each product/market, if possible, relevant M&A activity was identified to assess valuation references.
Gate 2: Identify a subset of R&D Lines with positive product/market analysis to perform economic assessment.
For this, CPL used its proprietary Non-Parametric Analysis (NAMAP) methodology. Opportunities were assessed and ranked according to the criteria specified in section 3 above. The criteria were weighted according to their relative importance. The rankings from the NAMAP table were used as a basis of discussion in deciding which opportunities are to proceed to the next stage.
5. For the subset of products chosen from Gate 2, economic analysis will be developed which will integrate information on: –
- Time to market / resources required to achieve same
- Investment required to scale from current stage of R&D to industrial / commercial stage
- Capital investment requirement to support production at industrial / commercial scale
- Operating expenditure
- Return calculation
The Client also sought advice on the structures/management processes to apply for the future execution of R&D activities.