Tag: Pharma services

Acquisition/diversification strategy for sales and marketing services company

December 1st, 2017 by

The client began as a contract sales organization serving large pharmaceutical companies. Market dynamics had been deteriorating as the pharmaceutical industry as a whole began to reduce the size of its sales force and as large customers started negotiating more aggressively. We worked with the client to develop and execute an acquisition and diversification strategy that resulted in a 30-fold increase in stock price over the course of our five-year engagement.

The strategy had three main thrusts: (1) assembling a broader portfolio of outsourced sales, marketing, and product development offerings, (2) focusing business development efforts on mid-sized and smaller customers who viewed outsourcing as a strategic imperative rather than a necessary evil, and (3) becoming an attractive acquirer for private company owners seeking a strategic buyer and the opportunity to continue their career growth. We helped identify acquisition candidates and performed commercial due diligence on companies in medication adherence, data mining, predictive modeling, pharmacovigilance, professional staffing, cost containment, sales force automation, advertising and market research.

Medical benefits management diversification for PBM

December 1st, 2017 by

A leading pharmacy benefit management (PBM) company had achieved a robust growth trajectory via organic growth and acquisitions. Health Business Group was asked to evaluate the attractiveness of other medical benefits markets including oncology, radiology, orthopedics, and medical devices and to develop an entry strategy for the more promising ones.

We developed a baseline market size estimate for each opportunity, using secondary sources to segment the market by key characteristics. We also researched pricing levels and market growth along the same dimensions.

We assessed the impact of ongoing and anticipated industry changes on the attractiveness of the market. Benefits management is a dynamic field, with significant changes underway in payment methodologies and reimbursement levels, evolution in evidence-based guidelines, concerns about patient safety, new technologies, and changes in patient mix.

We investigated the competitive landscape to understand current capabilities of the main players, and to assess the value of our client’s technology, knowhow and relationships in these fields

We worked to create a rigorous fact base built upon primary and secondary research. We provided a refined assessment of the attractiveness of the opportunity as well as market entry options with advantages and disadvantages of each. For the most promising segment we conducted acquisition screening and performed commercial due diligence on two companies.