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

The pharmaceutical field is undergoing an amazing deal International development consultancy alter. Organizations like Pfizer and Lilly are facing considerable product or service patent expirations. In addition, business pipelines are inadequate to switch the revenues missing to patent expirations. Lastly, EU-based and US-based organizations and US are shifting their corporations towards higher-growth markets in China, India, and other Rising Markets, making inner organizational turmoil inside their house marketplaces.

As lots of firms understand, it is decreasingly feasible to simply "research" your way outside of these troubles. Element of the solution to these problems is building and executing what we broadly consult with for a Organization Advancement and Licensing approach (BD&L). This approach 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 from the senior management team. Larger firms will have a team of a dozen or more executives, directors, and managers responsible for sourcing, analyzing, and recommending organization growth opportunities. Even smaller corporations will have one or two individuals formally charged with the BD&L process.

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

Progress of an Overarching Framework - A lot of pharmaceutical and biotechnology businesses 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, 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 lots of companies which do not take a framework-driven approach. A lot of searches are haphazard, where businesses 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 a lot of 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 providers was to license drugs from Japanese corporations, because quite a few innovative Japanese corporations lacked the global presence to develop and market their innovations outside their home country.

Today, this is no longer the case. Several Japanese firms, for example Takeda and Eisai, have successfully established a investigation and commercial presence in the US and EU. Corporations like this no longer need to have Western pharmaceutical organizations to commercialize their internally-developed innovations. So Western pharmaceutical companies 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 corporations typically have regionally focused BD&L executives who focus on identifying opportunities from their local markets for their local or even global marketplaces. But what of your smaller businesses 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 the business. A consulting firm can act being a de facto seeker and "shopper" of opportunity. Consultants can be utilized to focus on particular geographic areas for specific ideas.