The pharmaceutical sector is undergoing discover more an amazing deal of transform. Providers such as Pfizer and Lilly are dealing with considerable merchandise patent expirations. As well as, corporation pipelines are insufficient to replace the revenues dropped to patent expirations. And finally, EU-based and US-based corporations and US are shifting their companies toward higher-growth markets in China, India, and various Emerging Marketplaces, building internal organizational turmoil inside their house marketplaces.
As several organizations understand, it can be decreasingly possible to easily “research” your way outside of these challenges. Portion of the answer to those issues is producing and executing what we broadly seek advice from for a Enterprise Growth and Licensing strategy (BD&L). This approach would include any and all options for seeking and financing external partnerships, licenses, mergers, and/or acquisitions.
Of course all multinational pharmaceutical and biotechnology providers have an BD&L group, usually led by a member from the senior administration team. Larger companies will have a team of a dozen or more executives, directors, and managers responsible for sourcing, analyzing, and recommending small business development opportunities. Even smaller companies will have one or two individuals formally charged with the BD&L process.
So why should pharmaceutical organizations, even large ones with large BD&L teams, use consulting firms to assist them? We believe there are three explanations why this is the case:
Advancement of an Overarching Framework - Many pharmaceutical and biotechnology firms should be applauded for having a strategic and focused BD&L framework. Numerous corporations know exactly what they are looking for, i.e., asset type, stage of improvement, geography, deal structure, and so forth. A framework, even a simple one, makes it easier for the search team to identify and quickly eliminate opportunities that do not fit. This then enables the team to focus more time on those opportunities which might be a good fit. This results in better due diligence and faster offer making.
Unfortunately, there are many companies which do not take a framework-driven approach. Several searches are haphazard, where firms look for anything with a certain revenue potential, or anything that can be sold by their existing sales and marketing infrastructure. In our experience, any approach which aims to simply provide the sales organization with products to sell is unsustainable in the long run.
Savvy BD&L executives can leverage consultancies to help them develop this overarching framework, identifying the key variables which are important to the enterprise, its management, and its shareholders. Pharmaceutical management consultants can bring an objective perspective to an exercise which, if done properly, results in a roadmap that the BD&L team can then use to plan and execute a BD&L tactical plan.
Broaden Skill Set - We have noticed that several smaller BD&L teams have strengths and skills in some areas, but not others. For example, some businesses have BD&L teams led by scientists or clinicians or attorneys who lack the experience to quantitatively and financially assess opportunities. Using a consultancy can provide unbiased, rigorous quantitative analysis and financial modeling.
Extend Geographic Breadth and Depth - The traditional model for US and EU organizations was to license drugs from Japanese companies, because quite a few innovative Japanese companies lacked the global presence to develop and market their innovations outside their house country.