Partnerships: Necessary but not sufficient for the future of the Pharmaceutical Industry
Stewart Adkins, Stewart Adkins Advisors Ltd
In the loosest sense of the word, partnerships meaning relationships with external providers of product and services, have been a large contributor to the pharmaceutical industry for many years. However, those partnerships have rarely become a true symbiosis where the partners become mutually interdependent. Such a relationship would probably have offended the sense of self-importance of most pharmaceutical companies but the balance of power is ebbing away from the traditionally fully-integrated players and self-importance is a luxury that few can afford. This article proposes that the challenges to the future of Big Pharma are of sufficient magnitude that mere adaptations to the hitherto successful business model will not suffice to stave off stagnation and decline and that board rooms need to open their collective minds to completely new ways of doing business.
The perfect business development organisation? Comparison of theory and practice along the pharmaceutical licensing process
Sandy Donaldson and Chedia Abdelkafi, Vlerick Leuven Gent Management School, and Dr Michael Delfs, UCB Pharma SA
Business Development activities are increasingly important in the pharmaceutical industry, as illustrated by the growing number of alliances, reduced novel innovations by internal R&D departments and the increasing financial value of licensing deals. However, there is limited evidence that Business Development organisations follow clear strategic objectives and subsequently translate them into adequate structure, process and performance measures. Whilst the licensing process is similar throughout the Industry, in benchmarking interviews we have highlighted some trends and key drivers of success, such as the need for an optimal balance of stages/gates and built-in agility through clear and empowered decision-making. To complement agility, sufficient organisational support, deal creativity and performance measurement are also of pivotal importance when moulding the perfect business development organisation.
The Reverse Start-Up Model: An organisational approach to bridge the innovation gap
Neil J Campbell, Mosaigen, Inc and Endeavour Capital Asia Ltd
What needs to be done to improve or change the lack of commercial development productivity of the life science industry, specifically the pharmaceutical and medical device industries? Having an innovative approach to creating diversified commercial opportunities can drive enterprise value, share appreciation and diminish the attrition rates of development failure. Having a model that outlines the end results and the steps necessary to achieve it can provide a sustainable and scalable approach to managing and growing your life science organisation, be it large, small or an early-stage venture.
Opportunities and challenges in licensing
Nicholas Adams, Antisoma, Simon Best, BioIndustry Association and Ian Scoular, BTG plc
Licensing may be commonplace these days, but is still not an easy option. You need to look hard for good deals that fit with your strategy, then be careful to maintain a good working relationship with your new partner. In this article, three luminaries of the UK biotech field – Antisoma’s Nick Adams, the BioIndustry Association’s (BIA’s) Dr Simon Best and Protherics’s Dr Ian Scoular – offer advice and a seasoned eye on the opportunities and challenges inherent in licensing.
Creating real value in pharmaceuticals. Driving business development through portfolio strategy
Richard Stevenson, Cognitus Ltd
Ernst and Young (November 2008 survey) report that a majority of drug makers now rate market re-focusing and improved new product flows as their top strategic priorities. The survey also reports an increase in the number ‘strategic initiatives’ meaning companies must increase the speed of change by ‘prioritising and allocating resources effectively’.
These new priorities mean that managing product pipeline and drug portfolios – within a long term value framework – is now at the heart of the strategic agenda. However, maximising the value of planned investments in pharmaceuticals is notoriously difficult using traditional financial methods. Strategic resources must now be prioritised over three dimensions – portfolios, pipelines and time – with value as the ‘common denominator’.
This article describes a proven and transparent strategy architecture that addresses these issues from an integrated dynamic resource management and valuation perspective. Value cycle dynamics (VCD) comprises a rigorous management engagement process supported with value-based decision and communication tools. VCD is applied through a process and toolset known as system dynamics simulation and is illustrated here through a case example. The key features and benefits are summarised.
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