A few Causes Why Pharmaceutical Corporations Will need Specialty Management Consulting Corporations

The pharmaceutical market is going through a tremendous offer check my reference adjust. Providers like Pfizer and Lilly are dealing with considerable solution patent expirations. Additionally, company pipelines are inadequate to switch the revenues missing to patent expirations. And lastly, EU-based and US-based companies and US are shifting their companies toward higher-growth markets in China, India, and other Rising Marketplaces, making interior organizational turmoil of their property marketplaces.

As lots of providers understand, it is decreasingly feasible to easily "research" your way outside of these complications. Component of the solution to those difficulties is developing and executing what we broadly confer with for a Enterprise Advancement and Licensing system (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 providers have an BD&L group, usually led by a member on 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 business enterprise enhancement opportunities. Even smaller firms will have one or two individuals formally charged with the BD&L process.

So why should pharmaceutical firms, even large ones with large BD&L teams, use consulting firms to assist them? We believe there are three explanations why this is the case:

Development of an Overarching Framework - Quite a few pharmaceutical and biotechnology businesses should be applauded for having a strategic and focused BD&L framework. Several organizations know exactly what they are looking for, i.e., asset type, stage of progress, 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 quite a few firms which do not take a framework-driven approach. Lots of 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 firm, its management, 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 organizations 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 businesses, because lots of innovative Japanese providers lacked the global presence to develop and market their innovations outside their residence country.

Today, this is no longer the case. Quite a few Japanese businesses, including Takeda and Eisai, have successfully established a research and commercial presence in the US and EU. Organizations like this no longer require Western pharmaceutical companies to commercialize their internally-developed innovations. So Western pharmaceutical companies are now traveling to and meeting with organizations 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 providers typically have regionally focused BD&L executives who focus on identifying opportunities from their local marketplaces for their local or even global markets.