Capability-Driven PMI: Realizing the Promise of BioPharma

Abstract

With the search for next generation drugs getting harder, longer, and more expensive, pharmaceutical companies are scrambling to develop a broader suite of relevant capabilities (e.g. specific disease areas, high throughput drug screening, payor management, etc.). For example, biotech companies appear to have advantaged capabilities around development success rates - a more productive discovery capability focused on basic sciences and biology. In Bio-Pharma integrations, Pharma commercial capabilities are married with Biotech small molecule discovery, development, and licensing capabilities. Relevant scale can be increased in both development and marketing by leveraging across multiple therapeutic areas and geographies, as well as across both chemical and small molecule mechanisms. Integration must be shaped around the deal’s strategic intent to deliver on the strategic agenda. Merger integration has traditionally been more about merging positional assets than building capabilities, and tended to focus on footprint, headcount and cost reductions. Yet, BioPharma integrations are more about capability-building.