The pharmaceutical business is undergoing International development consultancy a tremendous offer of improve. Providers including Pfizer and Lilly are going through substantial item patent expirations. Plus, company pipelines are inadequate to interchange the revenues lost to patent expirations. Lastly, EU-based and US-based corporations and US are shifting their corporations towards higher-growth marketplaces in China, India, and various Emerging Markets, creating inside organizational turmoil within their home marketplaces.
As quite a few organizations recognize, it truly is decreasingly feasible to easily “research” your way away from these challenges. Portion of the solution to those difficulties is producing and executing what we broadly make reference to being a Business enterprise Advancement 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 companies have an BD&L group, usually led by a member in the senior management team. Larger companies will have a team of a dozen or more executives, directors, and managers responsible for sourcing, analyzing, and recommending organization improvement opportunities. Even smaller firms 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 companies to assist them? We believe there are a few reasons why this is the case:
Development of an Overarching Framework - A lot of pharmaceutical and biotechnology corporations should be applauded for having a strategic and focused BD&L framework. A lot of corporations know exactly what they are looking for, i.e., asset type, stage of progress, 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 deal making.
Unfortunately, there are quite a few companies which do not take a framework-driven approach. Several searches are haphazard, where businesses 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 easily 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 firm, 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 corporations 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 businesses, because quite a few innovative Japanese companies lacked the global presence to develop and market their innovations outside their residence country.