The pharmaceutical business is going through International development consultants a huge deal of change. Organizations for instance Pfizer and Lilly are facing substantial item patent expirations. Furthermore, organization pipelines are insufficient to interchange the revenues dropped to patent expirations. Lastly, EU-based and US-based businesses and US are shifting their companies to higher-growth markets in China, India, and also other Rising Marketplaces, creating interior organizational turmoil inside their household marketplaces.
As numerous firms know, it really is decreasingly possible to simply “research” your way from these problems. Element of the answer to these challenges is creating and executing what we broadly seek advice from for a Company Progress and Licensing strategy (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 companies have an BD&L group, usually led by a member with the senior administration team. Larger corporations will have a team of a dozen or more executives, directors, and managers responsible for sourcing, analyzing, and recommending small business growth opportunities. Even smaller corporations will have one or two individuals formally charged with the BD&L process.
So why should pharmaceutical companies, even large ones with large BD&L teams, use consulting firms to assist them? We believe there are 3 motives why this is the case:
Improvement of an Overarching Framework - A lot of pharmaceutical and biotechnology firms should be applauded for having a strategic and focused BD&L framework. Many corporations know exactly what they are looking for, i.e., asset type, stage of advancement, geography, offer 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 quite a few firms which do not take a framework-driven approach. Several searches are haphazard, where organizations 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 organization, 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 many smaller BD&L teams have strengths and skills in some areas, but not others. For example, some providers 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 providers was to license drugs from Japanese organizations, because numerous innovative Japanese providers lacked the global presence to develop and market their innovations outside their property country.