3 Motives Why Pharmaceutical Providers Need Specialty Management Consulting Corporations

The pharmaceutical business is going through an amazing deal https://www.mottmac.com/international-development adjust. Providers for instance Pfizer and Lilly are experiencing considerable products patent expirations. Additionally, business pipelines are inadequate to switch the revenues lost to patent expirations. Lastly, EU-based and US-based companies and US are shifting their businesses towards higher-growth markets in China, India, and other Emerging Marketplaces, building inner organizational turmoil within their dwelling markets.

As many companies recognize, it's decreasingly feasible to simply "research" your way outside of these issues. Component of the solution to these issues is acquiring and executing what we broadly confer with for a Organization Progress and Licensing strategy (BD&L). This tactic 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 in the senior administration team. Larger firms will have a team of a dozen or more executives, directors, and managers responsible for sourcing, analyzing, and recommending organization advancement opportunities. Even smaller corporations will have one or two individuals formally charged with the BD&L process.

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

Improvement of an Overarching Framework - Many pharmaceutical and biotechnology providers 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 deal making.

Unfortunately, there are lots of firms which do not take a framework-driven approach. Lots of searches are haphazard, where providers 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 company, 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 several 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 businesses was to license drugs from Japanese companies, because numerous innovative Japanese organizations lacked the global presence to develop and market their innovations outside their household country.

Today, this is no longer the case. Several Japanese providers, including Takeda and Eisai, have successfully established a investigate and commercial presence in the US and EU. Providers like this no longer will need Western pharmaceutical organizations to commercialize their internally-developed innovations. So Western pharmaceutical corporations 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 firms typically have regionally focused BD&L executives who focus on identifying opportunities from their local marketplaces for their local or even global marketplaces.