Challenge
A new portfolio management tool.
Twenty years ago, pharmaceutical companies’ growth strategies were tied to in-house development of therapeutics – from R&D to commercialization. These investments drove incredible revenue and blockbuster therapies. But that changed in the last decade. Buying therapeutic innovation through M&A quickly became the most common growth strategy.
Acquisition, divestment, and licensing are the typical levers pharma uses to manage their portfolios. Our customer needed a new option. The organization paused the development of a lifesaving therapy during phase II clinical trials when it determined that commercialization was no longer a strategic priority, which is fairly common in the pharma industry. But instead of fully divesting or licensing, they decided to try something new: divesting the partially developed asset and retaining a percentage of its future revenue.
This hybrid approach had never been done before. While the high-level terms of a deal were previously agreed to, our customer didn’t know how to operationalize and manage the execution of this novel, complex transaction.
That’s where Point B came in.
Opportunity
We focused on 3 objectives as we approach the project:
Managing the transaction timeline
Transactions are expensive and the complexity of this new, hybrid approach would put a defined timeline at risk.
Creating a repeatable model
We focused on setting up the customer for future success through documentation of best practices.
Being creative
This deal needed a different, external approach to realize its full potential. Establishing trust with our customer gave us the license for creative problem solving.
Our Approach
Ten internal functional teams plus the asset buyer meant that we were guiding 120+ people through this transaction. Staying organized and focused on critical milestones was paramount. Here are the functional teams we managed and the responsibilities for each.
Our industry expertise ensured the project was managed within the nuances of the pharma sector, which accelerated the client’s asset transfer. Our life sciences experts in clinical trials, M&A, and program management advised during project execution. They worked with the customer teams on:
- Transferring clinical trial protocols
- Re-allocating budget into other asset development based on funds that were freed up by divesting this asset
- Setting up the buyer’s PMO as the asset was transferred to them
- Considering global regulatory trends
- Streamlining data transfer and management
Ten internal functional teams plus the asset buyer meant that we were guiding 120+ people through this transaction. Staying organized and focused on critical milestones was paramount. Here are the functional teams we managed and the responsibilities for each.
Project Outcomes
Thanks to this project, we reduced the transaction’s time by 33%, freeing up approximately $5M in capital and resources to go back into other asset development programs. Project outcomes include:
- Reduced deal transaction timeline from 9 months to 6 months
- Achieved $5M+ savings through expedited execution timeline
- Enabled client to re-allocate funds to on-going development of other priority assets
If you’re looking to reduce the time and resources to execute your portfolio management, contact Point B today.
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