The pharmaceutical marketplace is going through International development consultancy an amazing deal of improve. Organizations including Pfizer and Lilly are facing considerable product patent expirations. In addition, corporation pipelines are inadequate to exchange the revenues dropped to patent expirations. And lastly, EU-based and US-based companies and US are shifting their corporations in the direction of higher-growth marketplaces in China, India, and various Emerging Markets, developing inside organizational turmoil in their household markets.
As several organizations realize, it truly is decreasingly possible to simply “research” your way out of these difficulties. Portion of the solution to those issues is developing and executing what we broadly confer with to be a Business Improvement and Licensing approach (BD&L). This system would include any and all options for seeking and financing external partnerships, licenses, mergers, and/or acquisitions.
Of course all multinational pharmaceutical and biotechnology firms have an BD&L group, usually led by a member of your senior administration team. Larger corporations will have a team of a dozen or more executives, directors, and managers responsible for sourcing, analyzing, and recommending organization progress opportunities. Even smaller firms will have one or two individuals formally charged with the BD&L process.
So why should pharmaceutical corporations, even large ones with large BD&L teams, use consulting firms to assist them? We believe there are a few reasons why this is the case:
Progress of an Overarching Framework - Lots of pharmaceutical and biotechnology corporations should be applauded for having a strategic and focused BD&L framework. Numerous firms know exactly what they are looking for, i.e., asset type, stage of development, 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 deal making.
Unfortunately, there are many firms which do not take a framework-driven approach. Several searches are haphazard, where companies 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 company, its management, and its shareholders. Pharmaceutical administration 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 a lot of smaller BD&L teams have strengths and skills in some areas, but not others. For example, some organizations 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 companies was to license drugs from Japanese companies, because several innovative Japanese companies lacked the global presence to develop and market their innovations outside their house country.