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Prepalyst has 20 healthcare coverage interview questions with model answers, covering pipeline risk-adjusted valuation, reimbursement and patent cliffs. Every question is graded on technical accuracy, completeness and interview communication. Practice is free.
CROs are essential to pharma R&D. This tests understanding of the healthcare services ecosystem.
Explain the business model of a contract research organisation (CRO). How do they generate revenue, and what drives demand for their services?
Generics have different economics than branded pharma. This tests understanding of the value chain.
Explain the generic drug business model. How does it differ from branded pharmaceuticals, and what drives profitability?
Healthcare real estate is a growing asset class. This tests understanding of the property side of healthcare.
Explain the business model of a healthcare REIT. How do they generate revenue, and what are the key risks?
Healthcare services (hospitals, insurers, PBM) have different economics than medtech/pharma. This tests breadth.
Explain the business model of a hospital company. How do they generate revenue, and what are the key cost drivers?
Medical devices have different economics than pharma. This tests understanding of the subsector.
Explain the business model of a medical device company. How does it differ from pharmaceuticals, and what are the key value drivers?
Reimbursement determines whether healthcare products get paid for. Fundamental to understanding the sector.
Explain how reimbursement works for pharmaceuticals and medical devices. What are the key payers and how do they decide what to cover?
Healthcare coverage teams use this as a foundational test of how payment incentives can reshape an otherwise stable revenue pool.
What is a site-of-care shift in healthcare, and why can it matter to the revenue and valuation of providers, payers and medical-device companies?
The patent cliff is the single most important concept in pharma valuation. Every healthcare interview covers it.
Explain the patent cliff for pharmaceutical companies. Why does it matter, and how do companies manage the risk?
Healthcare coverage teams use this to test whether you can distinguish a real operating improvement from acquired growth.
A physician-services company reports 12% revenue growth, including 8% from acquisitions. How would you assess the quality and value of the remaining 4% same-store growth?
Managed care has unique economics. This tests understanding of the insurance side of healthcare.
Explain the business model of a health insurance company. How do they generate profit, and what are the key risk factors?
Digital health is a growing subsector with unique economics. This tests understanding of new business models.
Digital health companies (telehealth, health IT, digital therapeutics) have different economics than traditional healthcare. How do you value them, and what metrics matter?
Regulatory risk is omnipresent in healthcare. This tests understanding of the political/legal landscape.
What are the major sources of regulatory risk in healthcare, and how do they differ across subsectors? How do you model this risk in valuation?
A managed-care earnings review tests whether you can turn a headline medical-cost ratio into a clean operating-profit bridge.
A Medicare Advantage insurer reports $1,000m of premium revenue, $840m of medical claims and $80m of administrative expense. Calculate its medical cost ratio and operating profit. If claims rise by $20m with all else…
Pricing power is the core pharma investment thesis. This tests understanding of the market dynamics.
What factors determine whether a pharmaceutical company can charge high prices for a drug? Why do some drugs have strong pricing power while others don't?
R&D productivity is the core pharma investment thesis. This tests understanding of industry challenges.
Pharma companies spend more on R&D but approve fewer drugs per dollar spent. Why is R&D productivity declining, and what are companies doing about it?
Healthcare coverage analysts must distinguish prescription demand from net-sales quality during an earnings miss.
A specialty-pharma company says prescriptions rose 12% and gross sales rose 10%, but reported net sales fell 3%. Management attributes the gap to gross-to-net deductions rising from 28% to 39%. How would you diagnose the…
A sell-side healthcare process can test whether you know how a regulatory condition changes both price and deal certainty.
A biotech with one oncology drug is being sold after accelerated approval. The confirmatory trial reads out in 18 months, and the buyer wants to pay a headline price based on full approval. How would you advise the…
Healthcare coverage teams use this to test whether you can identify the recurring economics embedded in a capital-equipment franchise.
A surgical-robotics company grows procedure revenue 18%, capital-equipment revenue 2%, and its installed base 10%. Management argues that the slowing equipment line is positive because the business is becoming more…
Healthcare coverage and biotech-focused funds start here.
A clinical-stage biotech has no revenue and one drug in Phase II. How do you value it?
Healthcare M&A has unique strategic drivers. This tests understanding of sector dynamics.
What are the primary strategic reasons for M&A in healthcare, and how do they differ across subsectors (pharma, medtech, services)?
Write your answer, get it graded on technical accuracy, completeness and communication, and see exactly which mechanic you missed.
Firm names indicate where a question type is commonly reported in interviews. They are not sourced from, endorsed by, or affiliated with the firms named.