In today’s fiscal environment, efficient capital allocation is crucial for success. Biopharma companies can take advantage of new approaches to commercialization to dramatically reduce the capital burden to launch their products.
Building Your Own Commercial Infrastructure Is a Waste of Capital
The technology, infrastructure, and full-time staff required for a successful launch can drain millions of dollars from your budget. Overinvesting in these areas not only adds to excessive costs but also carries significant risks if timelines shift due to regulatory and business challenges. By attempting to build their own commercial infrastructure companies often find themselves burdened with high fixed costs and operational expenses that could have been avoided. Now companies have the option of leveraging a turn-key commercial infrastructure that allow them to access the full capabilities of commercialization but at a fraction of the capital investment.
Applying Traditional Commercialization Models is Also Wasteful
Executing traditional commercialization models is equally wasteful. For small companies, commercial selling, general & administrative (SG&A) costs can consume 50-80% of revenue. This is a signal that traditional commercial approaches are not cost-effective. In contrast, commercial SG&A costs can be reduced to less than 20% of revenue when using a fully integrated outsourced commercial model. This significant reduction in costs allows companies to allocate more resources towards innovation and growth, rather than being bogged down by excessive operational expenses.
The Current Approach to Launching on Your Own Will Compromise Revenue
Companies who state they are launching on their own still rely on a collection of outsourced vendors to execute their launch. This approach is one of many reasons that almost three-quarters of all launches fail to meet expectations. Companies can now benefit from the new way of launching on their own by controlling a more effective, fully integrated commercial platform. Products using these types of platforms, which combine technology, operations, best-in-class launch processes and integrated teams, have performed at least 15-20% better than products launched using the old way of launching on your own.
The New Model for Cost-Effective Commercialization
EVERSANA offers a new, integrated commercialization model that dramatically reduces costs and maximizes revenue potential. By leveraging EVERSANA’s COMPLETE Commercialization® model, more than 50% of infrastructure investment can be avoided. SG&A costs drop to less than 20% without sacrificing quality. Ultimately, the full commercial potential of the asset can be achieved through leveraging EVERSANA’s integrated commercial model.
Find out if your asset qualifies for the COMPLETE model.
Contact our team now for a complimentary assessment and fast-track your success!
Author
Farah Ahmad is the Executive Vice President of Business Development at EVERSANA, where she leads the business development team targeting the North American market for small to mid-sized pharma and biotech companies. She previously…
Faruk is a life sciences professional with extensive experience addressing a broad range of strategic issues, including corporate development, portfolio planning, and launch excellence.