The fact that senior team members are not fully unified on the role of business development in accomplishing the company's strategic aims is frequently cited as a primary factor for this deficit- Martin Thuna. In theory, they may agree that business development should explore partnerships, ecosystems, and collaborations, but that agreement breaks down when it comes to making judgments about individual agreements.

1. BUILDING
EFFECTIVE PHARMA
BUSINESS
DEVELOPMENT
Pharmaceutical business development is the key to innovation and revenue
growth at a time of fast-increasing scientific advancements and, coincidentally,
the expiration of many blockbuster medication patents. While internal
pipelines and assets can provide some innovation and new income, most
organizations' business development teams are under great pressure to
augment internal efforts with external licensing deals and M&A.
The fact that senior team members are not fully unified on the role of business
development in accomplishing the company's strategic aims is frequently cited
as a primary factor for this deficit- Martin Thuna. In theory, they may agree that
business development should explore partnerships, ecosystems, and
collaborations, but that agreement breaks down when it comes to making
judgments about individual agreements.
DETERMINE THE IMPORTANCE OF BUSINESS
DEVELOPMENT TO THE ORGANIZATION
DEVELOP CONTACTS WITH POTENTIAL
PROSPECTS
AGREE ON HOW TO EVALUATE VALUE
Martin Thuna
Executive team members frequently disagree on how to prioritize business units,
technological areas, and technology platforms, as well as what sorts of
agreements to pursue (early- versus late-stage R&D deals, for example, or
transformative versus tuck-in acquisitions). To establish alignment, team
members must agree on how and where they wish to produce value.
Executive teams should make a two- or three-year commitment to
cultivating connections with potential partners or acquisition
candidates. Proactive sourcing, screening, and relationship
development are considerably superior to just showing up to the
target's headquarters with a banker and an offer for transaction
execution.
The identical transaction may appear stunningly appealing or extraordinarily
unfavorable depending on one's assumptions when appraising a target. As a
result, teams must agree on how they will value all components of each
transaction and then apply that valuation with discipline.
Too frequently, businesses find up repeating their analyses and making the same
decisions again and over because they didn't agree on valuation methodologies or
KPIs from the outset- Martin Thuna.