The Value of Focus

Portfolio Strategy for BioPharma in a New Era

Over the last decade, several factors have converged to drive biopharmaceutical companies (both large and small) to narrow their therapeutic areas of focus and to consolidate via acquisitions, divestitures and asset swaps. The push for cost containment and greater efficiency in the drug development process is one such factor. Companies also must ride the crest of technological advance in areas like precision medicine and immuno-oncology to “future proof” themselves and remain competitive and relevant.

 

Looking ahead, the Trump administration’s stated intention to incentivize U.S. companies to repatriate their overseas cash is likely to spark another wave of consolidation, followed by more divestitures of non-core areas and asset swap deals. This is especially likely in an environment where pipelines are relatively dry, fewer blockbusters are on the horizon and companies are increasingly looking to externalize their research and development (R&D) activities.

 

We also anticipate that, over time, companies’ increasing hyper-focus will push them to transition “beyond the pill” as they become more involved in disease management and care delivery, providing support services and leveraging digital technologies.

 

This paper takes a closer look at these trends and their strategic implications for companies seeking to maximize their pipelines, revenues and growth over the next 10-15 years.

 

Click here to read perspectives from our consulting team on portfolio strategy

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