Restructuring a Pharma R&D Portfolio

Challenge:

A German mid-sized pharmaceutical company was undergoing a radical restructuring as it transitioned into new therapeutic areas. There was pressure on the R&D budget from several competing claims.

A new potential blockbuster has been launched for two cancers. It obviously made sense to run a host of new trials to expand the range of tumours it could treat.

With the success of this product, there were lots of other promising oncology products in the development pipeline.

Meanwhile, the older products that still provided the bulk of the company's commercial cash flow needed continuing R&D support for new formulations, etc.

Solution:

I worked with the executive management group to improve the company’s R&D investment productivity. This involved developing a more thorough understanding of the development and market uncertainties the company faced, and the proactive creation of new alternatives to exploit this.

Results:

Working with the in-house portfolio analysts, we developed a prioritisation of the company’s R&D portfolio. Some projects clearly offered a high return on R&D investment and were funded. Others offered only a low (or sometimes negative) return and were shelved. For projects in the middle there was now an unambiguous understanding of where the value potential of each product opportunity lay, allowing the project teams to restructure their development plans and achieve more for less.