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Equity research on Pharma companies

master thesis discussion

15th of December, 20

To our students of Master in Finance at ISEG – Universidade de Lisboa, that I had the pleasure to supervise their master thesis, a word of appreciation for their effort, attitude and good work.

Telmo Vieira 

Foto ISEG TFVº_edited.jpg

This group of students performed their final Master in Finance´s work on Equity Research /company valuation of reference companies in pharmaceutical industry:

Sofia Moras performed her equity research regarding GLAXOSMITHKLINE.

Diana Sardinheiro performed her equity research regarding BAYER.

Ravi Rameschandra performed his equity research regarding JOHNSON & JOHNSON.

João Ventura performed his equity research regarding PFIZER.

Miguel Lavado Morais performed his equity research regarding MERCK.

Bruno Sousa performed his equity research regarding NOVARTIS.

All these companies in the pharmaceutical industry are facing a significant disruption in their business as a result of digital transformation, increased use of artificial intelligence and machine learning techniques, digital health, the use of remote clinical trials, patient empowerment, etc.

Healthcare: a sector in fast transition

Healthcare is a sector in fast transition facing some major drivers of change.

The unsustainable burden of healthcare costs is leading the industry from volume to value-based healthcare.

New therapies are moving from blockbuster drugs to prevention and personalized medicine.

Pharmaceutical companies are “moving from pill to data '', allocating an increased attention to health Data Lakes with the objective of obtaining quality data that allows faster and more effective research. There are today collaborative environments / # innovation hubs where healthcare authorities, hospitals, pharmaceutical companies, technology, data science and management consulting companies cooperate for fostering innovation as for example the project H-INNOVA: HEALTH INNOVATION HUB ( where PREMIVALOR CONSULTING, the Government of Madeira, VODAFONE, ROCHE, BC PLATFORMS and other reference companies are partnering with a common objective of i) improving the quality of life of patients, ii) improving the working conditions of healthcare professionals, and iii) achieving efficiency and productivity gains for hospitals and other healthcare providers including primary care.

Shift In Patient’s behaviours

The Healthcare industry is also facing a shift in Patient’s behaviours and expectations characterised by an improved access to information allowing health-conscious patient to know more about his/her health condition.

Patients expect information and increased transparency regarding treatments and procedures, probable outcomes, experience, and costs.

Patients used to have a more passive approach, but are now driving their own healthcare experience, becoming active participants in their health.

Equity Research / company valuation

Performing an equity research / company valuation on pharma companies requests a deep comprehension of what are the main trends in the industry, in what way the strategic options of the company might influence its value and how some relevant events might be able to impact company's growth, for example a pandemic as COVID-19.


After developing a base scenario, it is relevant to build alternative scenarios, optimistic and pessimistic, and perform a sensitivity analysis to the key value drivers to have a better understanding of the range of enterprise and equity values of the company that is being valuated.

Once again congratulations to our Master in Finance students of ISEG that could defend with success their master thesis on 15th of December, 2021 being this an important step for their lives and professional careers.

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