A few Reasons Why Pharmaceutical Firms Need to have Specialty Management Consulting Corporations

The pharmaceutical sector is undergoing a tremendous deal International development consultancy modify. Firms like Pfizer and Lilly are struggling with significant solution patent expirations. Furthermore, organization pipelines are insufficient to interchange the revenues misplaced to patent expirations. And lastly, EU-based and US-based businesses and US are shifting their corporations toward higher-growth markets in China, India, and other Emerging Marketplaces, making inside organizational turmoil inside their household marketplaces.

As lots of providers notice, it's decreasingly possible to easily "research" your way away from these challenges. Component of the solution to these problems is creating and executing what we broadly check with as being a Organization Growth and Licensing technique (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 corporations have an BD&L group, usually led by a member with the senior management team. Larger companies will have a team of a dozen or more executives, directors, and managers responsible for sourcing, analyzing, and recommending organization progress opportunities. Even smaller companies will have one or two individuals formally charged with the BD&L process.

So why should pharmaceutical businesses, even large ones with large BD&L teams, use consulting corporations to assist them? We believe there are 3 reasons why this is the case:

Advancement of an Overarching Framework - A lot of pharmaceutical and biotechnology providers should be applauded for having a strategic and focused BD&L framework. Numerous providers 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 a lot of firms which do not take a framework-driven approach. Several searches are haphazard, where firms 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 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 lots of 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 providers was to license drugs from Japanese companies, because quite a few innovative Japanese organizations lacked the global presence to develop and market their innovations outside their household country.

Today, this is no longer the case. Many Japanese companies, for example Takeda and Eisai, have successfully established a study and commercial presence in the US and EU. Organizations like this no longer need to have Western pharmaceutical firms to commercialize their internally-developed innovations. So Western pharmaceutical firms are now traveling to and meeting with corporations 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 businesses typically have regionally focused BD&L executives who focus on identifying opportunities from their local marketplaces for their local or even global markets. But what with the smaller organizations which may lack this geographic infrastructure?

This is precisely where consultants, especially boutique, highly focused consultancies, can play a critical role in sourcing and identifying opportunities that fit the strategic and financial objectives of your enterprise. A consulting firm can act to be a de facto seeker and "shopper" of opportunity. Consultants can be utilized to focus on particular geographic areas for specific ideas.