In the pharmaceutical industry, maintaining asset value is challenging. Traditionally, companies either licensed their products or built their own commercial setup, each option with its own risks. But what if there were a powerful alternative that boosts efficiency, saves costs, leverages multi-brand expertise, and maximizes revenue potential and asset value—all without the hassle of complex systems?
Out-licensing is a Bad Bargain
Out-licensing is a common strategy for clinical-stage companies to bring products to market through a commercial-stage pharma partner However, it often comes at a significant cost, with companies sacrificing up to 80% of the net present value (NPV) of their asset. While it provides a short-term economic boost, it results in a substantial loss of securing the majority of an asset’s overall value.
Going on Your Own is Equally Challenging
For clinical-stage companies, attempting to retain the majority value of their asset by commercializing on their own is unfortunately an option that loses value as well. It is unfair to expect clinical-stage commercial companies, whose comparative advantage is drug development, to quickly pivot and instantly establish a comparative advantage in commercialization. Those that attempt to do this aren’t able to realize the full value of their asset. Most companies that commercialize on their own deploy outdated commercial approaches with a collection of internal resources and external vendor networks of more than 10 vendors. This is compounded by undercapitalizing the pre-commercial work, which when taken together, leads to more than 20% of the overall value of the asset to not be realized.
There is a New Model that Offers a Credible Alternative
EVERSANA COMPLETE Commercialization® offers a new model that allows clinical-stage companies to maximize the commercial potential of their asset while retaining the majority of the asset’s life cycle value. Companies that build a strategic relationship with EVERSANA recognize they have a partner whose sole focus is best-practice commercialization. This results in successful product launches and tapping into the full potential of an assets value. Ultimately, this approach leads to company valuations that are 6x greater than companies that have out-licensed or launched unsuccessfully. More importantly, it leads to more patients receiving treatments they need to improve outcomes and more funding for further development of new medicines.
Find out if your asset qualifies for the COMPLETE model.
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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.