Scouting Biotech Candidates for a Pharmaceutical Company
The Problem
Our client, a publicly traded multinational company mainly focused on the production and commercialization of Active Pharmaceutical Ingredients (APIs) and over-the-counter medications, sought to penetrate the Drug Discovery market. Due to the limitations of its internal R&D capabilities, organic portfolio growth was unfeasible.
Diagnosis
Upon engagement, our team conducted a thorough assessment of the pharmaceutical company's R&D and corporate strategy, identifying critical areas of concern:
Unfocused Business Development Framework
The company lacked a structured biotech scouting process and a scalable framework to identify promising opportunities. The business development team had no scientific knowledge, prioritizing late-stage companies, often the most expensive investments, without the necessary insight to assess them.
Strategic Fit Gaps
The company struggled with strategic alignment, as most identified opportunities were seemingly selected based on short-term revenue potential rather than an overarching long-term goal.
Pipeline Diversity Bottlenecks
Innovation efforts were thinly spread across multiple disease areas. Lack of focus led to missed opportunities only achievable when a certain threshold of effort or resources is concentrated enough to drive meaningful change.
Our Strategy
Our guiding policy centered on building an integrated, scalable scouting infrastructure, using structured methodologies that combined strategic intelligence, extensive market mapping, AI-insights, and rigorous evaluation frameworks.
Data-Driven Scouting Framework
Established a robust longlist-to-shortlist prioritization system, mapping over 400 biotech companies globally before narrowing down to 35 priority candidates based on alignment with the client's therapeutic and scientific focus.
Targeted Diligence Processes
Conducted in-depth analysis of scientific and business viability for the 35 candidates, including SWOT analyses and IP reviews to understand scientific advantages and competitive barriers, as well as evaluation of preclinical data.
Strategic Partnerships
Negotiated Confidential Disclosure Agreements (CDAs) with a subset of the companies. Enhanced engagement with innovation ecosystems through industry partnerships and targeted outreach to startups.
Our Recommendations
Company Evaluation
From the 35 shortlisted biotech companies, we identified one standout candidate, a European biotech startup specializing in medical devices for the delivery of novel biologics. Comprehensive technical due diligence highlighted the startup's innovative platform, clinical applicability, and well-structured pipeline.
Investment Strategy
Recommended pursuing a strategic investment to secure a competitive edge in the biologics space, with active involvement in shaping clinical development through board-level participation and inclusion of a first right of refusal clause.
Strategic Report
Delivered a robust investment recommendation report detailing scientific and business strategies, risk-reward profile, and potential long-term gains from early-stage partnership, including insights on adjacent market trends.
Future Pipeline
Documented all 400 mapped companies in a comprehensive scouting database for potential future exploration, enabling continued tracking of secondary or tertiary candidates as pipelines evolve.
Outcome
Immediate Impact
Over nine months, our team implemented a meticulous scouting methodology within the company, streamlining engagement and evaluation processes, and reducing decision-making timelines by 40%. Additionally, during the implementation process, we identified a European biotech startup as a high-potential investment candidate for the client, perfectly aligned with its therapeutic focus and R&D priorities.
Long-term Benefits
We helped reshape the company's corporate strategy by laying out a clear roadmap for portfolio diversification into biologics. The engagement strengthened its global presence, fostering valuable relationships within scientific ecosystems and significantly increasing visibility. With early access to emerging biotech opportunities, the client is now well-positioned for long-term growth and sustained competitiveness.