The pharmaceutical industry is undergoing UK International development consultants a huge deal of modify. Companies like Pfizer and Lilly are facing significant product or service patent expirations. Furthermore, company pipelines are inadequate to switch the revenues missing to patent expirations. And finally, EU-based and US-based firms and US are shifting their companies toward higher-growth marketplaces in China, India, along with other Rising Marketplaces, building inner organizational turmoil of their home marketplaces.
As a lot of providers comprehend, it is decreasingly possible to simply “research” your way out of these difficulties. Section of the answer to those worries is acquiring and executing what we broadly refer to being a Organization Development and Licensing tactic (BD&L). This method 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 the senior management team. Larger corporations will have a team of a dozen or more executives, directors, and managers responsible for sourcing, analyzing, and recommending enterprise improvement opportunities. Even smaller firms will have one or two individuals formally charged with the BD&L process.
So why should pharmaceutical providers, even large ones with large BD&L teams, use consulting companies to assist them? We believe there are a few good reasons why this is the case:
Enhancement of an Overarching Framework - Quite a few pharmaceutical and biotechnology companies should be applauded for having a strategic and focused BD&L framework. A lot of firms know exactly what they are looking for, i.e., asset type, stage of advancement, 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 several corporations which do not take a framework-driven approach. A lot of 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 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 corporation, 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 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 businesses was to license drugs from Japanese companies, because lots of innovative Japanese firms lacked the global presence to develop and market their innovations outside their residence country.