Impact on production line: Intrinsically acid-resistant Enteric Gelatin Capsules - BC-641

Project type: Research
Desired discipline(s): Finance, Mathematical Sciences, Business, Social Sciences & Humanities, Economics
Company: GelEntroCeutics Inc.
Project Length: 4 to 6 months
Preferred start date: As soon as possible.
Language requirement: English
Location(s): Canada; Canada; Canada
No. of positions: 1
Desired education level: Master's
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About the company: 

Our company has come up with a new formulation to make intrinsically acid-resistant enteric soft-gelatin capsules.

Enteric capsules are those that bypass the stomach and disintegrate into the intestine.

Capsules need to be enteric in many cases as many medications may irritate the stomach or due to the higher efficacy and results stability of the drug, should they disintegrate in the intestine.

Previously, capsules were made acid-resistant by coating them with another layer of acid-resistant excipients. This means massive capital investment in infrastructures, a higher rate of waste and failure, labour, and use of raw material.

Our formulation will enable pharmaceutical and nutraceutical companies to make intrinsically acid-resistant enteric soft-gelatin capsules without the need to go through the coating process. With a few changes (addition of excipients) in the raw material mixture of the soft-gelatin capsules, our formulation will produce Enteric Soft-Gelatin Capsules.

Describe the project.: 

The project aims to involve a Finance research person to investigate the NPV and IRR (or any other appropriate model to be deployed) of implementing our process instead of implementing the coating process in a pharmaceutical/nutraceutical company.

The potential candidate and the supervisor should obtain the cost and benefits information (RE: Coating method Vs. Our method) either through their literature review or by partnering with companies in the pharmaceutical/nutraceutical industry. 

Our goal is to prove that our proposed formulation will have economies of scale with a significantly high NPV and IRR.

The candidate will obtain the costs and benefits for two scenarios:

  • The first, if a pharmaceutical/nutraceutical company wants to implement the coating method (costs include: Capital costs, labour, raw material, regulatory and other indirect costs, etc.) and (benefits include the projected revenue, scale-up of the projected sales to the volume in ~5-10 years revenue, potential positive impact on the image of the company and Goodwill) and run the NPV and IRR of the project.
  • The second, if a pharmaceutical/nutraceutical company want to implement our proposed formulation and do exact same analysis of what is done above.

The candidate then compares two scenarios and concludes with the results.

Methodology/techniques that will be used:

NPV, IRR by calculating the terminal value. Any other applicable methods that can be persuasive enough.

Required expertise/skills: 

  • Broad Finance / Business / Economics backgrounds
  • GelEntro will leave this to the academic supervisor to determine the required assets and skills