3 Reasons Why Pharmaceutical Organizations Have to have Specialty Management Consulting Firms

The pharmaceutical field is undergoing a huge deal London International development consulting modify. Corporations like Pfizer and Lilly are struggling with substantial item patent expirations. In addition, enterprise pipelines are insufficient to interchange the revenues lost to patent expirations. Finally, EU-based and US-based corporations and US are shifting their businesses in the direction of higher-growth marketplaces in China, India, and various Emerging Markets, developing internal organizational turmoil in their house marketplaces.

As lots of companies comprehend, it really is decreasingly possible to easily "research" your way outside of these challenges. Element of the solution to those challenges is acquiring and executing what we broadly consult with for a Company Enhancement and Licensing strategy (BD&L). This technique would include any and all options for seeking and financing external partnerships, licenses, mergers, and/or acquisitions.

Of course all multinational pharmaceutical and biotechnology companies have an BD&L group, usually led by a member with the senior administration team. Larger companies will have a team of a dozen or more executives, directors, and managers responsible for sourcing, analyzing, and recommending business enterprise growth opportunities. Even smaller corporations 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 firms to assist them? We believe there are a few causes why this is the case:

Advancement of an Overarching Framework - Several pharmaceutical and biotechnology organizations should be applauded for having a strategic and focused BD&L framework. Several companies know exactly what they are looking for, i.e., asset type, stage of development, 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 several firms which do not take a framework-driven approach. Many 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 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 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 corporations was to license drugs from Japanese providers, because lots of innovative Japanese companies lacked the global presence to develop and market their innovations outside their household country.

Today, this is no longer the case. Numerous Japanese businesses, like Takeda and Eisai, have successfully established a investigation and commercial presence in the US and EU. Firms like this no longer have to have Western pharmaceutical firms to commercialize their internally-developed innovations. So Western pharmaceutical corporations are now traveling to and meeting with firms 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. But what on the smaller firms 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 on the organization. A consulting firm can act for a de facto seeker and "shopper" of opportunity. Consultants can be utilized to focus on particular geographic areas for specific ideas.