The pharmaceutical market is undergoing International development consultancy a tremendous deal of modify. Businesses for example Pfizer and Lilly are struggling with sizeable item patent expirations. Furthermore, organization pipelines are insufficient to replace the revenues lost to patent expirations. Finally, EU-based and US-based companies and US are shifting their companies to higher-growth marketplaces in China, India, as well as other Emerging Marketplaces, generating inner organizational turmoil within their residence marketplaces.
As a lot of firms notice, it is decreasingly feasible to easily “research” your way out of these complications. Element of the solution to those worries is building and executing what we broadly seek advice from as being a Company Development 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 enterprise enhancement 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 companies to assist them? We believe there are 3 motives why this is the case:
Development of an Overarching Framework - Lots of pharmaceutical and biotechnology providers should be applauded for having a strategic and focused BD&L framework. Many organizations 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 deal making.
Unfortunately, there are many firms which do not take a framework-driven approach. Lots of 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 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 firm, its administration, 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 numerous smaller BD&L teams have strengths and skills in some areas, but not others. For example, some firms 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 corporations was to license drugs from Japanese firms, because lots of innovative Japanese organizations lacked the global presence to develop and market their innovations outside their dwelling country.