Commercialisation Strategy

Case Study: Commercialisation Strategy

The Commercialisation Strategy Challenge

An early stage biotechnology company was seeking to develop a global/regional strategy for the commercialisation of their Phase I compound to maximise the value to the company over the potential life cycle of the product.

The Solution

PharmaVentures conducted a detailed assessment of the market opportunities, technology risks and developments, launch and marketing costs via scenarios of “go-it-alone”, “outright sale”, “out-licensing for royalties” as well as “out-licensing with co-promotion”.

The value generated was modelled and the scenarios were prioritised. Partnering and deal strategies were developed for the selected optimal strategy and incorporated into a business plan.

Pharmaceutical Company Growth

Case Study: Pharmaceutical Company Growth

Why PharmaVentures?

PharmaVentures was chosen because its knowledge of the global pharmaceutical market, access to proprietary data resources as well its transaction experience in effectively acquiring these on behalf of clients.

The Challenge

A major pharmaceutical company was seeking mid market growth products for emerging markets.

The Solution

PharmaVentures developed a customised search strategy based on the specific requirements of the client, which involved a systemic country by country identification of candidates with the correct therapeutic indications, combined with their commercial potential and availability for the territories of interest. These prospects were delivered to the client on a rolling weekly basis, with an initial data pack, with sufficient information to allow the client to select leads. For each lead Pharmaventures generated a tailored proposal which was the basis of formal and confidential approach by PharmaVentures on behalf of our client to capture the business opportunity.

This project has identified many more promising leads than the client had been able to achieve with its own resources and PharmaVentures has contributed to an efficient acquisition process.

Pharma Deal Strategy, Deal Structuring

Case Study: Pharma Deal Strategy, Deal Structuring

The Pharma Deal Strategy Challenge

A mid-sized life sciences manufacturing company with new cell lines developed a novel pipeline and they sought the partnership of a global or several regional pharmaceutical companies with strong competencies in clinical development and marketing in the focus therapy areas. However, the company had no clear understanding regarding the value the selected compounds were worth and how that value should be shared with their future partners.

The Solution

Following a detailed valuation phase, PharmaVentures conducted a comprehensive pharma deal strategy benchmarking analysis using PharmaDeals Agreements proprietary data to evaluate the possible deal outcomes and to identify three deal structures for the client: “Optimal”, “Fall-back” and “Walk-away” positions.

The developed deal structures were assessed for returns to the client across the life cycle of the products as well as regional versus global partnerships.

Life Sciences Valuation

Case Study: Life Sciences Valuation

The Life Sciences Valuation Challenge

A large diversified chemical company made a strategic decision to potentially divest one of its pharmaceutical related business units that lay outside its core strengths. In order to understand the potential sales returns and to develop a sales strategy, it needed to provide a life sciences valuation of the complex business.

The Solution

The valuation started with a due diligence phase when PharmaVentures investigated all the components of value including the markets, the manufacturing capabilities/facilities, the patents, the scientific skills, the impact of investments on future revenue streams and profitability. Furthermore, PharmaVentures developed a financial model using discounted cash-flow/expected net present value calculations. Potential divestment scenarios (outright sale, medium term earn-out) were also considered.

The client used the outputs to confidently seek out appropriate buyers and negotiate the most attractive terms.

Market Sizing & Forecasting

Case Study: Market Sizing & Forecasting

The Challenge

A Research & Development company was approaching the end of Phase II trials with a re-formulated compound. Although the company had confidence over their forecasts for the US, they lacked an understanding of the more complex European and Asian markets. They needed to gain a detailed understanding of the opportunities and risks prior to starting partnering negotiations.

The Solution

The market sizing project was designed for two stages. In Stage 1 PharmaVentures conducted a primary market research with Key Opinion Leaders in the main markets of focus to obtain data on potential use, penetration, price sensitivity of the product and its relative value compared to main current and future competitors.

This was complemented with a pipeline review of all novel compounds targeting the same segments. The outputs formed Stage 2, an epidemiology based, detailed forecasting across several markets that were impacted by key competitive, pricing and regulatory events. Subsequently the client went on to conduct a full valuation of the opportunity for the purposes of strategic alliances.