Hello, my name is Asha Collins.
I'm here to talk to you today about business development.
This is part of a larger learning
series on business concepts for
life scientists. My Asha Collins,
I'm a Vice President of the U.S. Clinical
Trials and Sourcing at McKesson.
I have a PhD in cancer biology
and microbiology from the University of Wisconsin
at Madison. And today, I'm going to talk to you about
business development for scientists.
At the end of this talk, you will
learn five different things around business
development, or as we call it "BD."
The first piece is you'll actually be able to
understand exactly what this is.
So we're going to define business development for you,
we're also going to talk you through the different steps
of the entire BD process.
You're going to understand through that, how BD
can help actually drive the visions and goals for your
organization, for your business, or for
your initiatives. We're also going to talk to you about
the different vehicles that you can put in place
to have a successful BD strategy
and to achieve those goals.
And last, we're also going to talk to you about
how you actually put together a successful
deal structure.
So what is business development?
Business development really helps drive
growth and expansion for an organization,
a product, and even a specific brand.
The purpose is to help identify
and execute on any type of opportunity
that can drive revenue, profit, or even just
overall growth, or again a business or an initiative.
BD is a really critical component
of any business strategy.
When we're looking at business development,
it comes in very different flavors depending on
where exactly it sits. For scientists, business development
in a biotechnology company can look very different
than a business development strategy in academia.
In biotechnology, business development
is really focused on how a company fills its
pipeline. How it commercializes or brings products
to market and also how it serves its stakeholders.
When you're looking at BD in academia,
it's really focused on the lab. How the lab
fills its project pipeline and how that lab
can also execute successfully on opportunities to
publish, as well as to fund the lab, and
the overall growth of the lab and the lab initiatives.
This is an overview of the entire BD process.
And I'll walk you through these four
different steps over the next several slides.
The first step is identify the gap.
To make sure that you have a successful business strategy,
you need to know what you're solving for
from the very beginning. And that's what
this step does. Number two, determine the vehicle
that you're going to use to fill this gap.
You know what the gap is, how are you going
to actually fill the gap? There are a number of
vehicles that you can use, and we'll discuss
those. Once you determine the gap, once you determine
the vehicle, then it's all about execution. And the
step number three is all about you executing
the deal. In four, you've done the work to understand
what your gap is, you know what vehicle you're using,
you're executing on it, are you succeeding?
So number four teaches us how to
go through making sure that you're measuring
your success so that you can then go back
and look at what additional gaps or
remaining gaps you have for the second
version of your BD strategy.
So, let's talk about this first step.
Identify the gap.
When we think about this part of the process,
there are a couple questions to first ask
yourself. You're saying, how can I actually
identify the gap? Well, what kind of gaps are
you talking about? What do these gaps look like?
Those are really good questions and what we're
going to do next is talk about the types of gaps
that there are and how you can actually go about
identifying these different types of gaps.
So one, just note, that gaps can be
multifarious, they can be extremely diverse.
So they can be financial, you have a business
you know how much money you need to make or
how much you're projecting to make,
and maybe you're having a shortfall.
And so that's what a gap could be when we talk
about financial. It could be a shortfall of
revenue, it could be a shortfall of
profit, it could also be a shortfall to access
to capital. So for example, perhaps you need
some additional real estate, or perhaps you need
additional equipment, and you don't have the
ability to get there.
These are all called financial gaps.
There could also be market gaps.
You have an amazing product, but maybe
the market hasn't really understood that yet.
So perhaps you have a market share gap,
you're not getting as much penetration as
you want out of the marketplace.
Maybe you have a geographic footprint misalignment.
You think that your product should be huge
in North America, but it's really only huge
in China and maybe Europe.
That would be a geographic footprint gap.
And then the last piece is access to markets.
Maybe you're looking for positions that have a huge uptake
of your product, and that's not happening. Access to
markets, whether stakeholder or perhaps even actually
geographic, are also types of gaps that you can identify.
And the last is stakeholders.
So we're looking for people to adopt your product
and you want to make sure that all the key stakeholders
have them, this is where you look at either product
adoption or expertise gaps.
So these are really the three types
of main gaps we think about when we're looking
to create a business development strategy.
We're looking to understand exactly what you're
trying to solve for.
These are examples of different gaps,
and to make it really crystal clear, what we're talking
about when we go through these different ones.
So a few years back, Gleevec actually
lost its patent, and as a result, Novartis was
falling quite short in its cancer drug sales.
And as a result, they had to really
push hard to look for new drugs to
fill this revenue gap. And this was reported across
the board, but this particular Wall Street Journal article
really talks about it quite clearly.
Another piece that we're seeing a lot of companies
go through, too, is also a pipeline gap.
And we'll actually show another detailed example
of this as well. So a pipeline gap means that
you have a number of products but perhaps
when you look across either sort of preclinical
all the way to phase 4 and launch, maybe
you don't have your products actually evenly
or optimally placed across that pipeline.
And so this is what we call a pipeline
gap. And this is something that Eli Lilly
and their investors were dealing with as well.
Here's an example of a stakeholder adoption gap.
And so here we see that Novartis
was really.. they had a heart failure pill and they
were looking for doctors to really uptake this pill
and what they were seeing was that they weren't
getting their doctors to really prescribe Entresto.
This is a key, a really clear example, of a stakeholder
adoption gap.
This last piece is a market penetration gap
example. And so here, J&J was looking
specifically at a global market strategy
and falling rather short in terms of its penetration.
All together, the revenue, pipeline, stakeholder,
market penetration gaps are real issues that
biotechnology and biopharma companies
deal with day to day. And BD is a key
success factor in helping them address those
and get over these gaps.
So now let's discuss how gaps
are actually identified.
And when you think about gaps and the identification
of them, we really think about them in two different
ways. We think about the current business model gaps
as well as the future business model gaps.
And when we're thinking about the current business model gaps,
what we really want to understand are
what we really want to understand is
how are you doing today versus how you thought you might
be doing today? And so what you would like to do
is sort of take an analysis in what we call
gap analysis. You can find a lot more information
about this on YouTube videos as well.
And what you do is, you map out where exactly
you are today across any number of
factors, whether it's the marketplace, stakeholder
adoption, finances, et cetera.
This red pin actually shows where you are today
and then you assess, well where do we actually
think that we want it to be? And that difference
is your actual gap. And you can take that
and that will sort of be the driver for how you
determine how you move forward
with a BD strategy.
You also want to think about your future growth
gaps. So where will your product be
and where will your business be in the future?
And where will that market be in relationship
to that? And so that's why for the future
growth gaps, what we really need are
deep assessments about the marketplace.
You can think about it in four different ways,
you can look at market penetration,
so jump forward in your brain and think about
three years, maybe even 12 years
or 5 years, and where the market
is going to be and how your initiative
might actually be, in relation to that marketplace.
Is your product going to be more or have greater penetration
or less? And why might that be?
The other part is the product development.
Which phase is your product in today?
And how might that change in the future?
What will that look like and what are some potential
gaps in the development of your product?
One of the last pieces is market development.
Are you moving into a new market? Are you moving
into a very established market?
Think about your goals in relation to the
market and where it will be in the future.
And the last piece is diversification.
Do you have multiple different product types?
Do you have multiple different subsegments of a business?
How are you diversifying your different revenue
streams or your different goals or your different
strategies to actually get to your goal?
And how might that diversification change
in the future? Having a good assessment of all these four
things would really help you understand
what potential gaps you will have in the future.
And these will give you the tools to help you identify
the gaps in the future and the previous ones
from the current business model, as well.
This is a really good example of how companies
actually look at their pipeline to understand what gaps
they have in their pipeline.
Very commonly, you take a look at all
the products you have in your portfolio
and you map them against the entire
lifecycle. So are they preclinical or have they actually
already launched? Any gaps in any part of these
phases introduces a strategy or opportunity
to actually identify a place where you can
put a BD strategy around. And as you can
see in this example, there's a clear gap
in the clinical and approval space that
this company has with their portfolio.
This is another example of how companies
look at commercial gaps or market gaps.
And so here, you can see that
they have some active users across the board.
They're looking basically at the different demographics
of different stakeholders that have taken up
the product, where the product is taken up,
so again, are their stakeholders adopting it correctly?
Or is it a gap? Is the product where it's expected to be
geographically? Or is there a gap?
And also, this last piece too, is average
adherence. So this is that adoption piece.
Are people actually taking up this product
as we've exactly, as the company expected
the product to be taken up.
And that's all the different ways that you can
look across your business, your product,
your initiative, to see are we having
a commercial gap? And then drill down
to figure out what exactly type of gap are we having?
To learn more about this, you can
also understand how you identify gaps by using
other types of things. There's a lot more that you can do.
Here are a few of those things.
You can look at more metrics that really understand
what exactly are we looking to achieve?
So maybe it's 50% market share,
but what does that mean for each demographic,
for each stakeholder, for each type of product,
at what timeline are we looking to
achieve those? So those would be understanding more metrics
and having really, really clear success indicators.
The other piece appears to be doing a lot more
analysis around not just revenue and profit,
but maybe even operational expenses, or maybe even
other types of revenues or profits. So you're getting
again a lot more specific about those things.
You could also look at market assessment, that we
talked about, one thing I didn't talk about was actually
competitor analysis. And that would be really, really
key to understanding the market as well, too.
Not just what you're expecting, but also how
do you think other companies and other competitors
are going to act in the market in the future?
Because that's also going to impact
any future gaps that you might also have.
The last two things are really going deeper
by getting into the stakeholder behavior
analysis, so you'll have for each product
or initiative or company, or a lab, you'll have a different
stakeholder group that you're actually targeting.
Different target groups, or different stakeholder
groups need different things.
And there might be gaps that are very unique to
those different stakeholders, so you'll want to drill
down to understand those a lot better, so you can
address them specifically in a focused manner.
And the last thing is root cause analysis.
And this is a process you can probably
look on YouTube and learn a lot more
about. What it really helps you do is to understand
not what the symptoms of the problem are
but make sure when you're identifying an issue,
it is actually the root cause of the actual
reason, the actual cause and not just a
corollary to the issue or the gap that you're seeing.
All of these pieces can really
be drawn really closely to academia.
You can draw very straw parallels to academia
and Anatol's video can really help you understand
that more, where he really goes through the questions
of how an academic lab utilizes BD,
as well as how these gaps are actually
identified and filled using a much more
lab-centric lens.