The complex pharmaceutical landscape in Europe — especially in Germany — make financial planning and forecasting a difficult and formidable process. To overcome such challenges, drug manufacturers and other companies in the industry are discovering that financial modeling in health care is crucial to predicting future revenue streams, annual budgets, and winning the drug tender game in socialized medicine.

When health care companies enter the European market, they must navigate the sector’s complicated regulations as well as contend with multiple reimbursement schemes for over the counter, generic, or patent-protected pharmaceutical products. Companies must incorporate the entire market landscape when evaluating the best strategy to market their products. That additional complexity, and understanding the possible scenarios, must now become a fundamental requirement for accurate financial forecasting.

Effective modeling of health care financial scenarios requires using different sources, including existing and purchased data, and ensuring the assumptions and data are transparent to optimize strategic decision making. It also entails gathering data on current regulations and various reimbursement schemes, as well as creating interactive visualizations to help support decisions and reduce risk of misjudgments.

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For more information on financial modeling, please contact Raymond Berglund or Marcel Wibbe.