Aligning R&D activities with commercial realities is an issue as old as the pharmaceutical industry itself. The importance of a commercial perspective in R&D is increasing as the downward pressure on drug prices and limitations on market access from private and public payers continue to increase. This is particularly pressing in areas where medicines do not offer differentiated advantages over existing treatments. In parallel, as pharmaceutical organisations have become more complex, regions have become more fragmented, and organisational functions have become larger, it has become increasingly difficult to ensure integrated and holistic commercially-oriented behaviour in R&D. Our experience is that this causes significant frustration in both R&D and Commercial functions, not to mention unrealised value creation. In this Novasecta Note we explore the R&D-Commercial interface and what can be done to improve it.
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We have worked collaboratively with Novasecta over many years across a range of strategic topics. I have particularly valued how they really understand and care about our business, and how they manage to apply their deep industry insights to our context. This has brought my Management Team and Board to clarity and alignment on practical strategic moves at important moments in our evolution as a company.Kjetil Hestdal