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Client Case
Corporate Venturing in Pharmaceuticals

The sequencing of human genome was a collaborative effort led by the US together the UK, France, Germany, Japan, and China which heralded a new way for drugs to be discovered and developed.

However, genomics required different types of technology to analyze and manage the data which meant a large opportunity for the IT sector.

Vaxa worked ITCo., a Fortune 50 IT company, to develop its global strategy and implementation tactics to pursue this opportunity.

the PROBLEM
discovery
Results

Tab Content One

The productivity of pharmaceutical R&D has been on the decline for a long while. Research spending increased without an equivalent rise in the number of new drugs. By Vaxa analysis, the drug industry had to produce an 8% year-over-year growth rate to align spending with new drug output but the solution was not as simple as allocating more funds to research and development--if anything, more funding would just worsen the problem if R&D could not be more efficient.

The sequencing of the human genome created two major opportunities for the drug companies:

Make research and development more efficient, and
Increase the number of new drugs coming from R&D.

But to work, it required new and improved technologies along three dimensions which were integrated through bioinformatics software platforms. It is these bioinformatics platforms that will help accelerate drug discovery but didn't exist and presented a major opportunity for the technology industry.

To be successful at using the human genome for drug discovery, the pharmaceutical companies had to create or acquire four (4) integrated technologies as shown below.

Genomics - Study of the genome’s structure and functions.
High Throughput Screen - Automation for massively parallel experimentation.
Combinatorial Chemistry - Rapid & systematization generation of a wide range of molecular entities.
Bioinformatics - Technology tools for understanding, generating, processing, and analyzing biological data.

ITCo. had a wide range of assets and capabilities that allowed the company to take an industry leadership role in designing, developing, and offering these solutions. Vaxa's role was to collaborate with ITCo. to ensure the strongest possible strategic alignment between the genomic-based market needs and their value proposition.

Key strategic issues we addressed:

Creating clarity around the major information plays.
Developing a fact-basis between the opportunity attractiveness and their strategic fit.
Designing the strategic alternatives and postures to capture the maximum market value.
Determining the strategies to fill the capabilities gaps--from acquisitions to joint ventures.
Demonstrating the financial returns relative to investment, revenues, and margins.

Tab Content Two

Vaxa collaborated with the with ITCo. to:

Engage the global pharmaceutical ecosystem to understand and predict how the human genome will change drug research and development.
Create the strategic alignment between the different business units and the predicted solutions.
Identify and close on a global portfolio of alliances--from private equity funds to technology companies.
Forecast the market opportunity and develop market share goals.
Design and build the organizational structure to pursue this opportunity.

Tab Content Three

Client CaseCorporate Venturing in Pharmaceuticals

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Client Case
Corporate Venturing in Pharmaceuticals