Business Development: Accelerating the Deal

Summary

Close key deals and build a top-flight business development team:

Deal-making is an established strategy for filling company pipelines, raising cash, expanding portfolios and driving long-term revenue. Whether companies forge straightforward licensing agreements or long-term alliances, organizations across the industry depend on other firms' discovery, development and marketing capabilities to reach a range of different objectives.

Use this report to perfect your team's approach to different elements of the deal-making process. Explore primary data and read other executives' perspectives for a comprehensive look at current business development challenges:

• Align deal making with company and therapeutic franchise strategies
• Win competitive funding and staffing
• Streamline due diligence, early deal evaluation and negotiation
• Build cross-functional excitement for new deals
• Identify red flags and watch for stumbling blocks to deal success

Companies Included in Report:

Abbott Labs / Ablynx/ ADVENTRX Pharmaceuticals
Allergan/ Altus/ Amgen
Amylin/ AstraZeneca/ Bayer Schering
Biogen Idec/ Boehringer-Ingelheim/ Bristol-Myers Squibb
Caprion Proteomics/ Celgene/ Cancer Research Technology
Compugen/ CytRx/ DSM
Eisai/ Eli Lilly/ Epix
Eurand/ Genentech/ GlaxoSmithKline
Implicit Bioscience/ Janssen-Cilag/ King Pharmaceuticals
Lexicon/ MedImmune/ Merck & Co.
Merck Serono/ Nerviano Medical Sciences/ Neurochem
Neurogen/ Novartis/ Novo Nordisk
NPS/ Onyx/ Pfizer
Primus/ Procter & Gamble/ Purdue Pharma
Roche/ Sanofi-Aventis / Solvay
Valeant Canada/ Vifor

Contents

• Charts and Graphics
• EXECUTIVE SUMMARY
  • Figure E.1:Deal-Making Challenges
  • Figure E.2: Business Development Annual Budgets: Companies With Budgets Greater Than $1 Million
  • Figure E.3: Company G: Identification for Therapeutic Areas Covered by General Business Development
  • Figure E.4: Company O: Decision-Making Process
• BUSINESS DEVELOPMENT BUDGETS, STRUCTURE AND STRATEGY
  • Figure 1.1: Centralization of Business Development Functions
  • Figure 1.2: Business Development Annual Budgets: Companies with Budgets Less Than $1 Million
• Business Development Budgets
  • Figure 1.3: Business Development Annual Budgets: Companies with Budgets Greater Than $1 Million
• Business Development and Licensing Structure
  • Figure 1.4: Business Development Staffing: Companies With 10 or More FTEs
  • Figure 1.5: Business Development Staffing: Companies With Fewer Than 10 FTEs
  • Figure 1.6: Company L's Business Development Structure
  • Figure 1.7: Company M's Split System
  • Figure 1.8: Company L's Small BU Business Development Reporting Relationships
  • Figure 1.9: Company O's BD&L Structure
  • Figure 1.10: Company Q's Structure
  • Figure 1.11: Company L's Primary Care BD&L Function
  • Figure 1.12: Company L's BD&L Finance Team
  • Figure 1.13: Reasons for Pursuing New Deals
• Business Development Strategy
  • Figure 1.14: Licensing Enters the Pipeline
  • Figure 1.15: Phases in Which Companies Focus for In-Licensing Deals
  • Figure 1.16: Phases in Which Companies Focus for Out-Licensing Deals
  • Figure 1.17: Phases in Which Companies Focus for Inbound, Co-Development Deals
  • Figure 1.18: Phases in Which Companies Focus for Outbound, Co-Development Deals
  • Figure 1.19: Phases in Which Companies Focus for Inbound, Co-Promotion Deals
  • Figure 1.20: Phases in Which Companies Focus for Outbound, Co-Promotion Deals
  • Figure 1.21: Company T's Licensing Strategy Structure
• OPPORTUNITY IDENTIFICATION AND EVALUATION
  • Figure 2.1: Structure of Deal Identification Process
  • Figure 2.2: Deal Challenges: Deal Identification and Evaluation
  • Figure 2.3: Deal Challenges: Identifying Deal Opportunities (by Company)
  • Figure 2.4: Deal Challenges: Establishing Partner Relationships (by Company)
  • Figure 2.5: Company M's Basic Market Assessment
  • Figure 2.6: Company O's Identification Process
  • Figure 2.7: Company G: Identification Structure for Therapeutic Areas Covered by General Business Development
  • Figure 2.8: Company G: Identification Structure for Therapeutic Areas Covered by Therapeutically Aligned BD
• Best Practices
  • Figure 2.9: Company P's Alliance Review Process
• The Deal Identification and Evaluation Process
  • Figure 2.10: Company O's Decision-Making Process
• DUE DILIGENCE
  • Figure 3.1: Deal Challenges: Due Diligence
  • Figure 3.2: Master Due Diligence Model
  • Figure 3.3: Warning Signs
• Goals and Investments
  • Figure 3.4: Duration of Due Diligence
  • Figure 3.5: Due Diligence Investment
  • Figure 3.6: Company G's Due Diligence Considerations
• Cooperation in Due Diligence
  • Figure 3.7: Business Development Staffing By Deal Stage: Companies With Up t10 Cumulative FTEs
• Cross-Functional Involvement
  • Figure 3.8: Business Development Staffing By Deal Stage: Companies With More Than 10 Cumulative FTEs
  • Figure 3.9: Inbound Deals: Functions Involved in Due Diligence
  • Figure 3.10: Outbound Deals: Functions Involved in Due Diligence
  • Figure 3.11: Prevalence of Tools Used tEstimate Potential ROI
• Deal Negotiation and Finalization
  • Figure 4.1: Deal Challenges
  • Figure 4.2: Business Development Staffing By Deal Stage: Companies With Up t10 Cumulative FTEs
  • Figure 4.3: Business Development Staffing By Deal Stage: Companies With More Than 10 Cumulative FTEs
  • Figure 4.4: Inbound Deals: Functions Involved in Deal Negotiation/Finalization
  • Figure 4.5: Outbound Deals: Functions Involved in Deal Negotiation/Finalization
• BUSINESS DEVELOPMENT DEAL PROFILES
• 9 Deal Profiles that Contain the Following Data Points:
• Deal Background
  • Type of Deal
  • Number of Bids Solicited
  • Anticipated Peak Annual Sales
  • Groups Involved in Steps of Deal-Making Process
• Timing and Decision-Making
  • Investment in Deal-Making Process
  • Time tComplete Due Diligence
  • Average Cost of Due Diligence
  • Division of Control for Clinical Development and Marketing Decisions
• Finances and Key Challenge
  • Royalty Percentage
  • Milestone Payment Triggers
  • Key Challenge tDeal Success