EVALUATE the each of the three investment options that board of Niramaya Pharma Limited is considering along with potential impact thereof on the…

8 The three options will affect the portfolio as follows: Option 1 - Combi-instant-relief The Combi-instant-relief has successfully concluded its clinical trials and is prepared for market introduction. This development will effectively prolong the patent protection for Combi-relief by an additional 10 years, thereby averting its transition into the decline phase and extending the maturity phase. This measure is intended to maintain a balanced portfolio with respect to cash flow, as the Combi-instant-relief will produce revenue to support other products within the portfolio. Additionally, it will mitigate (if not entirely; then reduce) portfolio risk since the sales revenue from Combi-instant-relief is expected to be more reliable than the projected returns from other products that are presently under initial phase. Option 2 - Immunol Allocating resources to a marketing campaign for Immunol has the potential to transition it into the growth phase, thereby enhancing the immediate growth prospects of the portfolio. However, the presence of a close substitute in the market increases the risks associated with Immunol, which could result in lower-than-expected growth and delay its break-even point, as additional investments may be required to position Immunol competitively. In the short term, Immunol may place greater demands on the portfolio's cash flow rather than contributing to it. Option 3 - Sanjeevini If Sanjeevini successfully conclude the final clinical trials, it will swiftly transition from the development and launch phases into the growth stage. Anticipated demand is likely to drive significant growth, thereby enhancing the overall growth balance of the portfolio. Nevertheless, there is no assurance of Sanjeevini's success, making this the most precarious option available. The effect on the total cash flow of the portfolio will be influenced, to a degree, by the established price and the resulting sales volumes. If Sanjeevini proves to be a revolutionary product, it is possible to achieve both a premium price (though intent is to keep the prices low due to social significance of product) and substantial sales volume; however, there exists a risk that certain resource-constrained nations may manufacture generic versions of the medication prior to the expiration of the patent or global patent can be obtained. Recommendation Overall, investing in Combi-Instant-Relief appears to be the most secure strategy for sustaining cash flow within the portfolio, while Sanjeevini offers the greatest potential for growth and long-term profitability. However, the intent is not to generate substantial profits through premium pricing, as this aligns with the social mission of "Sarve Santu Niramaya." Ultimately, the final decision will depend on the directors' risk tolerance and strategic priorities.