3 Good Reasons Why Pharmaceutical Companies Need Specialty Management Consulting Firms
As much companies realize, it truly is decreasingly feasible to easily "research" your method out from these complaints. A part of the answer to these challenges is developing and executing everything we broadly make reference to as being a Business Development and Licensing strategy (BD&L). This plan would include any and all options for seeking and financing external partnerships, licenses, mergers, or acquisitions.
Naturally all multinational pharmaceutical and biotechnology companies offer an BD&L group, usually led by part of the senior management team. Larger firms will have a team of the dozen or higher executives, directors, and managers in charge of sourcing, analyzing, and recommending business development opportunities. Even smaller firms are going to have 1 or 2 individuals formally charged with the BD&L process.
So just why should pharmaceutical companies, even large ones with large BD&L teams, use consulting firms to help you them? We believe you can find three reasons why here is the case:
Development of an Overarching Framework - Many pharmaceutical and biotechnology companies must be applauded for having a strategic and focused BD&L framework. Many companies know precisely whatever they are looking for, i.e., asset type, stage of development, geography, deal structure, or anything else. A framework, also a simple one, makes it easier for that search team to recognize and quickly eliminate opportunities that do not fit. This then enables the team to focus additional time on those opportunities which can be an excellent fit. This leads to better research and faster deal making.
Unfortunately, there are numerous firms which will not require a framework-driven approach. Many searches are haphazard, where companies seek out anything having a certain revenue potential, or anything that could be sold by their existing sales and marketing infrastructure. Inside our experience, any approach which aims to only provide the sales organization with products to market is unsustainable ultimately.
Savvy BD&L executives can leverage consultancies in order to develop this overarching framework, identifying the important thing variables which can be crucial to this company, its management, along with its shareholders. Pharmaceutical management consultants can bring an unbiased perspective to the exercise which, if done efficiently, results in a roadmap that the BD&L team can then use to organize and execute a BD&L tactical plan.
Broaden Skill Set - We now have pointed out that many smaller BD&L teams have strengths and skills in some areas, but not others. By way of example, some companies have BD&L teams led by scientists or clinicians or attorneys who lack the experience to quantitatively and financially assess opportunities. By using a consultancy provides unbiased, rigorous quantitative analysis and financial modeling.
Extend Geographic Breadth and Depth - The original model for all of us and EU companies would be to license drugs from Japanese companies, because many innovative Japanese companies lacked the international presence to formulate and market their innovations outside their house country.
Today, this is not the situation. Many Japanese companies, including Takeda and Eisai, have successfully established a research and commercial presence in the united states and EU. Businesses like this no longer need Western pharmaceutical companies to commercialize their internally-developed innovations. So Western pharmaceutical companies are planning a trip to and meeting with companies in China, India, and Eastern Europe...anywhere when a new innovation or opportunity may exist. For larger, global BD&L teams it is less of an issue. The fact is, the biggest companies most often have regionally focused BD&L executives who concentrate on identifying opportunities off their local markets for his or her local or maybe global markets. But what of the smaller companies that might lack this geographic infrastructure?