Typical Big Pharma Profile
- R&D spend of €500m-€6,000 million per year.
- Publicly listed.
- Grown by a series of acquisitions and organic growth.
- Cost-cutting, especially sales force and R&D.
- Goal is to satisfy analyst / investor requirements for value creation and steady EBIT growth.
- Patent expiries coupled with inadequate and/or stagnating pipelines.
- Highly complex and cumbersome processes and business models leading to diseconomies of scale, particularly in R&D.
- Poor return-on-investment due to heavy investments in crowded markets with products that are marginally differentiated.
- Expensive acquisitions that are not followed through by merger synergies.
- Set up R&D collaborations between Big Pharma and small to mid-sized companies.
- Find projects from MidPharmas and/or start-up biotechs to fill gaps in Big Pharma pipelines.
- Build nimble and dynamic organisational units that have the positive characteristics of small or mid-sized companies.