Three Factors Why Pharmaceutical Organizations Will need Specialty Management Consulting Firms

The pharmaceutical business is going through a huge deal UK International development consultants transform. Organizations which include Pfizer and Lilly are dealing with sizeable merchandise patent expirations. Plus, organization pipelines are insufficient to exchange the revenues dropped to patent expirations. Lastly, EU-based and US-based firms and US are shifting their corporations in the direction of higher-growth marketplaces in China, India, and various Rising Markets, producing inside organizational turmoil within their residence markets.

As a lot of organizations know, it is decreasingly possible to easily "research" your way from these challenges. Element of the solution to these difficulties is producing and executing what we broadly refer to like a Business Growth and Licensing technique (BD&L). This strategy would include any and all options for seeking and financing external partnerships, licenses, mergers, and/or acquisitions.

Of course all multinational pharmaceutical and biotechnology businesses have an BD&L group, usually led by a member of 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 company growth opportunities. Even smaller companies 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 reasons why this is the case:

Enhancement of an Overarching Framework - Several pharmaceutical and biotechnology companies 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 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 a lot of corporations which do not take a framework-driven approach. Many searches are haphazard, where corporations 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 administration, and its shareholders. Pharmaceutical management 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 organizations lacked the global presence to develop and market their innovations outside their house country.

Today, this is no longer the case. Many Japanese businesses, for instance Takeda and Eisai, have successfully established a exploration and commercial presence in the US and EU. Providers like this no longer require Western pharmaceutical corporations to commercialize their internally-developed innovations. So Western pharmaceutical businesses are now traveling to and meeting with companies in China, India, and Eastern Europe...anywhere where a new innovation or opportunity may exist. For larger, global BD&L teams this is less of an issue. IN fact, the largest organizations typically have regionally focused BD&L executives who focus on identifying opportunities from their local markets for their local or even global markets.