Sample interview questions: How do you assess the credit risk associated with pharmaceutical research financing?
Sample answer:
Assessment of Credit Risk in Pharmaceutical Research Financing
1. Viability of Research Project:
- Evaluate the clinical and scientific merits of the research, including potential therapeutic benefits, target market, and regulatory landscape.
- Assess the expertise, track record, and financial stability of the research team.
- Determine the likelihood of successful clinical trials and regulatory approvals.
2. Financial Health of Sponsor:
- Analyze the sponsor’s financial statements, cash flow, and credit history.
- Evaluate the sponsor’s existing debt burden, leverage ratio, and interest coverage ratio.
- Assess the sponsor’s ability to fund the research project and repay the loan.
3. Market Risk:
- Consider the competitive environment and market dynamics within the industry.
- Evaluate potential changes in regulatory requirements, reimbursement policies, and technological advancements.
- Assess the risk of market failures or delays in product commercialization.
4. Regulatory Compliance:
- Ensure that the research project adheres to ethical guidelines, clinical trial regulations, and data privacy laws.
- Review compl… Read full answer
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