Exponent’s economic consultants apply objective economic, statistical, financial, and quantitative methods to complex issues faced by corporations, non-profits, trade associations, and governments. We specialize in science-based economic damages analysis, risk assessment, litigation support and other advisory services with a focus on energy, environmental, health impacts and intellectual property.
An Economics Team within a Scientific Firm
Exponent’s economics team is unique relative to the typical financial advisory services or traditional economics consulting firms. With consultants in 90 technical disciplines, our team of economists can draw upon in-house scientific, engineering, and regulatory expertise to bring an integrated, scientific point of view to economics consulting services.
As enterprises face increasingly complex challenges and greater uncertainties, a multidisciplinary approach to problem solving is essential. New and existing products confront growing regulatory scrutiny and potential exposure to enforcement actions and/or litigation. In light of these uncertainties, an integrated approach, combining scientific knowledge and economic principles, provides a robust framework to navigate these challenging environments. Exponent is uniquely positioned to offer clients this unparalleled perspective.
Health Economics and Outcomes Research
Health Outcomes – Exponent’s health economics and outcomes research consultants determine the “value for money” of new medical technologies. We specialize in evaluating the economic impact of pharmaceuticals, medical devices, biotechnology products, and diagnostics on treatment patterns, medical care resource utilization, and health-care costs. Exponent staff is experienced in assessing the changes in health outcomes that result from new medical technologies, including decreased mortality, reduced disease cases or less severe symptoms, improved quality of life, and increased patient satisfaction. Our analyses provide rigorous quantification of changes in health outcomes relative to their costs and to the costs of competing health-care interventions, allowing assessment of the appropriate value for these new medical technologies. Examples of our services include medical claims analyses, cost-of-illness studies, value-based pricing, clinical-trial based services, and market evaluations for product development and licensing decisions.
Reimbursement & Compensation – Reimbursement and compensation have always been important areas in health-care economics. In addition, changes to Medicare reimbursement rules in recent years, and possible expansion of insurance coverage if implementation of the Patient Protection and Affordable Care Act proceeds, indicate growing uncertainties about how health-care expenditures will be reimbursed. The regulatory changes suggest that the universe of “allowed” procedures is expanding, and risk pools are expected to change with the introduction of previously uninsured patients into the managed-care system. Companies and other organizations need to understand how changes prompted by health-care reform will affect business practices and performance. Exponent economists provide clients with sound scientific approaches to risk pooling, pricing, and benchmarking—fundamental components of developing new and efficient insurance products.
Product Liability, Risk Assessment and Regulation
Whether the enterprise is the corporation, the marketplace, or the household, products’ risks and their liabilities have become core drivers for decision making. Product-liability claims can be detrimental to the financial health of a corporation. Exponent assists clients in evaluating exposure to potential and ongoing liability claims and the resulting economic impact. Exponent provides risk assessment, product failure analysis, and impact analysis with long-term forecasting (e.g., in bankruptcy and mass-tort proceedings) and insurance claims analysis.
Business activities often encompass a wide range of environmental risks of exposure. These exposures can result in the release of pollutants into the environment, which may lead to environmental and health consequences, or to property value diminution due to stigma from fear of contamination and adverse health impact. Exponent economists assess damages related to environmental cleanup obligations; toxic tort claims involving bodily injury, property damage, and natural resource damages; and regulatory fines and penalties.
Intellectual Property
Exponent provides businesses, inventors and their counsel technical and economics consulting services for intellectual property (IP) issues. Intellectual property generally consists of two elements—a technical aspect and an economic aspect that affect the financial benefits of the asset to the owner. With strong technical and recently expanded economics expertise, Exponent is uniquely qualified to assist businesses, governments, universities, and individuals in understanding, evaluating, and protecting both aspects of their intellectual property. Our consultants provide assistance to our clients for all forms of IP litigation as well as consulting on the economic value of specific IP for due diligence, mergers/acquisitions, ITC Hearings, and other matters. Exponent has a demonstrated history of technical and economic expertise across a multitude of industries, including agriculture, electronics and telecommunications, software and hardware, biotechnology, medical devices, and industrial and consumer products.
Due Diligence
With its scientific and engineering resources, Exponent is uniquely positioned to offer due-diligence services for mergers and acquisitions; financial and insurance solutions to transfer risks; intellectual property valuation; and commercial transactions that involve high-technology, health-care, manufactured and consumer products, technologically driven components, and environmental risks. With extensive experience in risk analysis and risk management techniques, Exponent’s economic, scientific, and regulatory consultants are well versed in modeling, analyzing, and communicating the effects of combined risks. We conduct vulnerability assessments of regulatory and safety systems, perform compliance audits, and carry out due diligence projects. Often working with clients’ in-house counsel or outside law firms, Exponent provides the technical and regulatory capabilities needed for time- and issue-sensitive work that is critical for business success.
Market Mechanisms and Competitive Processes
A well-designed market can yield efficiencies to participants, but markets often are subject to manipulation, obstacles to their development, and failure. The growth of market-based approaches in many different contexts—e.g., cap-and-trade mechanisms for pollution control, markets for health insurance, and auction-based procurement of goods and services—requires careful definition of “the rules of the game.” Exponent staff has assisted clients in identifying alternative market mechanisms for increasing product value. We capitalize on Exponent’s science base to investigate new mechanisms to buy and sell, as well as develop technology and its applications.
In class-action litigation, Exponent consultants advise clients on the entire range of economic issues that can arise, including the determination of common impact on a class-wide basis, proof of injury, analysis of intra-class conflict, and the feasibility of formulaic approaches to damages. Exponent economists employ sophisticated economic theory and quantitative methods, grounded in a thorough understanding of markets. Empirical analysis is often a central and critical element of class action cases. Exponent’s economists and statisticians have the advanced modeling and statistical experience and technological capability required for working with extremely large data sets.