Challenge

A change in the corporate strategy required the R&D organisation of a MidPharma to evolve and structure its activities from a Life Cycle Management and Product Maintenance focus to a mixed model incorporating NME innovation

The R&D head and R&D Leadership team were not clear or aligned on what the new strategic focus, structure, governance, and roles and responsibilities should be for the R&D organisation

Solution

Deeply investigated and diagnosed the organisation’s current focus, structures, practices and processes for R&D activities

Interviewed a broad range of executives from our proprietary network of R&D leaders to explore the processes and models that they applied to managing R&D projects in both product maintenance and innovation, and the nature of outsourcing they applied to each

Explored options and designed an evolved operating model for the new R&D organisation

Result
  • A clearly articulated and comprehensive operating model comprising R&D focus, organisational structure, practices, and processes
  • Alignment and commitment of the R&D leadership team to implement the new model
Challenge

Following a new corporate strategy, a MidPharma had re-oriented its R&D strategy to improve external innovation sourcing and broaden its technology focus

Though the new strategy was clear, the details of the capabilities required to execute it, both existing and new, were less clear, and there was no step-wise plan to rebalance capabilities

Solution

Thoroughly assessed and challenged functional resourcing plans based on context-relevant experience and relevant benchmarks

Interviewed a selection of senior executives in companies that had been on similar journeys to build the required new capabilities

Created and aligned R&D leadership on a resourcing and capability roadmap, ratified this with relevant governance committees and secured commitment to implement

Result
  • Top management alignment on a clear and sequenced plan to add new capabilities in both recombinant proteins and translational medicine, and to increase outsourcing flexibility
  • New hires for key capabilities and a leaner outsourcing model for non-core activities that together enabled the more effective progression of a much more innovative pipeline
Challenge

The available resource, budget and value data was more suited to clinical projects, and the leadership team did not have a synthetic and succinct dashboard to track discovery activities

Solution

Established the principles, goals and scope of information that the discovery leaders needed to make better decisions

Clarified the sources of relevant information, the areas where qualitative judgement were required, and the processes for creating decision-relevant information

Created a pilot dashboard for use at the discovery leadership team meetings, and initiated the population of the dashboard with relevant data

Result
  • The discovery leadership team used the dashboard routinely to evaluate and track its portfolio and resources across therapeutic areas, modalities, and capabilities

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  • Ongoing focused and high quality decision making on priorities and resourcing in order to increase the value of the entire discovery portfolio
Challenge

Following a period of profitability constraints, a MidPharma was poised for adding external partnerships and bolt-on acquisitions and needed a prioritised set of candidates to approach with a strong rationale for each

The management team had differing views on the relative attractiveness of different candidates and how they would fit the corporate strategy

Solution

Aligned management on future goals and preferred growth options based on management team insights and preferences and the agreed corporate vision and direction

Searched thoroughly for possible expansion candidates based on agreed profiles, and assessed the feasibility and attractiveness of those that best fit the corporate goals

Synthesised and aligned on a clear and actionable growth plan including the rationale for specific moves and interdependencies between the various options to pursue

Result
  • A sequenced and actionable roadmap including candidates for immediate follow up to focus corporate development activities across therapeutic areas, regions, and types of company
  • A richer and more coherent pipeline of partnership and M&A candidates that fit the corporate direction
Challenge

Ambitious targets for pipeline growth in a MidPharma led to a request for R&D to establish how it could do more external innovation in order to support achievement of the new goals

The external innovation team was under-resourced and traditionally focused on earlier technology collaborations rather than the pipeline enrichment that was newly required
 

Solution

Developed a powerful external innovation strategy that supported the delivery of the desired R&D strategy, and designed new activities and processes for the various elements of the organisation involved in external innovation

Benchmarked a subset of peer companies to inform key choices around resourcing, capabilities, targets and necessary investment

Created a business plan that included resourcing, return on investment and impact on the existing organisation and designed the “reconfigured” R&D/BD capabilities

Result
  • The external innovation business plan was approved, implemented, and embedded into the existing R&D and BD processes
  • The company applied the plan to accelerate pipeline enrichment through signing more high quality and focused external innovation deals
Challenge

A new corporate strategy that focused on accessing increased innovation in a MidPharma’s core therapeutic area required extra global reach and capabilities to access external innovation

External innovation activities were split between R&D and BD and not located in a way that would ensure both access to the right innovation and integration with the internal organisation
 

Solution

Defined a clear external innovation focus in terms of pipeline stages, technology modalities, types of collaboration, asset risks, deal archetypes, and geography

Designed a lean external innovation sourcing model inspired by the approaches of other companies and analysis of where the desired technologies and assets were concentrated

Created a business plan and implementation roadmap to successfully embed the new model and characterise the resources and investment requirements for success

Result
  • Executive committee approval for a new resourcing model and processes for external innovation with increased investments into strategic locations
  • A more focused and effective external innovation machine to enrich the innovation pipeline
Challenge

A MidPharma was suffering from the complexity of a highly diverse portfolio of projects, multiple domains of functional expertise, and resource allocation pressures, resulting in project delays with insufficient pipeline progression and launch of valuable products

The decision-making, roles and responsibilities and governance of R&D lacked a focus and sense of urgency for project progression
 

Solution

Interviewed a broad range of executives from within the company’s R&D organisation and related stakeholders to understand the roots of the performance issue

Externally researched into other organisation’s structures, practices and processes for R&D activities that were relevant to and could inspire solutions to the company’s specific challenges

Designed a new operating model for R&D including a strengthening of project teams, revitalised governance, improved project leadership and management
 

Result
  • A new and implemented operating model design including new matrix emphasis, teams, governance and behaviours
  • A significantly refocused R&D portfolio and an acceleration of the progression of the company’s most promising projects
Challenge

Shareholders were pressurising the board of a MidPharma to prioritise its investments either regionally or therapeutically to drive short-term growth

The board were split between doubling down on a successful product franchise and investing in new paths to grow, and incremental NPV analyses on each new opportunity were not helping

Solution

Clarified and focused the feasible strategic alternatives for the company, evaluated each from a strategic and financial perspective, and established the full value and risk implications of creative paths to grow

Facilitated evidence-based discussions with the executive team to narrow down the alternatives to a dominant strategic framework that clearly prioritised where and what to buy, build or disinvest

Result
  • A strategic framework that required a refreshed therapeutic and geographic focus and a ruling out of other options
  • Fast-tracking and investment in the launch of a complementary product with the knowledge that it fitted well with the strategic framework that the company had aligned on
Challenge

Corporate management changes and profitability pressures in a MidPharma led to a new focus on the value that R&D was creating, and how productivity could be significantly improved

The company had a multi-site fully integrated R&D organisation that had not delivered any new products to market for decades

Solution

Thoroughly and critically analysed the R&D portfolio and organisation from discovery through to registration across small molecules and biologics and several therapeutic areas

Developed a pipeline evolution model to explore what kind of output could be expected from the existing portfolio supplemented by business development

Comprehensively benchmarked the R&D organisations and performance of relevant peers, in order to highlight areas for improvement in strategy, structure and outsourcing

Result
  • A new and more focused strategy with new goals and a significant change to the focus, size and footprint of the R&D organisation
  • A more productive basis for enriching the pipeline and increasing the ROI of R&D

Challenge

A large MidPharma with an attractive late-stage pipeline sought to strengthen its commercial footprint in an important region for one of its therapeutic areas

Key stakeholders were not aligned on whether to self-build, acquire or partner in order to best create value, as there was insufficient insight into how feasible each option was
 

Solution

Assessed the corporate ambition and the current portfolio and capabilities from a potential partner’s perspective through structured interviews and analysis

Thoroughly screened and anonymously approached selected CEOs and key stakeholders of potential partners or M&A candidates to explore the nature of feasible deals with the company

Narrowed down the options for commercial footprint expansion with key stakeholders using a decision-making framework and facilitated workshops
 

Result
  • Clear alignment that partnering was not the right approach for the company and identification of the most promising M&A candidates to support self-build
  • A focus for internal resources to be deployed effectively for commercial expansion in a core region and therapeutic area for the company