 The biotechnology industry has evolved from a handful of small companies, focused primarily on technology development and service contracts, into a diverse enterprise with a solid commercial base. Leading the way have been a small number of top-tier biopharmaceutical companies that have achieved several consecutive years of profitability, based on therapeutic product revenues ranging from hundreds of millions to billions of dollars annually. But these companies now face unprecedented challenges to further growth as a result of technological developments, more intense competition, and unresolved political and regulatory issues. Large biopharma companies are well positioned to meet these challenges, however, if they employ a balanced approach to growth, which focuses on three strategies:
- Improved commercialization Biopharma companies need to differentiate their products by showing how value is defined for multiple stakeholders and to optimize product development for commercialization.
- Enhanced M&A/Alliance capabilities To succeed in a more competitive future, M&A/Alliances should be viewed as a core strategy, rather than a supplement to internal R&D
- Targeted innovation To sustain long-term growth, biopharma companies need to evolve their business models, moving beyond individual product development toward delivering integrated healthcare solutions.
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