Analysing a Biotechnology Company for its Innovation, Strategy and Technological Value
At i3 Consult we have been successful in ensuring that a biotechnology client of ours retained a significant portion of funds upon initiating their highly successful IPO. Our client was a university based incubator company preparing for its IPO. In order to do this, they needed a comprehensive evaluation of the protein biomarker marketplace, including sales trends, competitive activity, client needs analysis and analogous case studies of competitors. i3 Consult provided a final valuation of investment funding, business angels and contingency VC funding. This begs the question, how was this possible? Below is outlined our approach to the project.
Focus groups/structured teleconference meetings consisting of 5 to 10 team members each from a cross-section of the Biotech company’s value chain were conducted to brainstorm on the critical success factors that will procure a greater market share. As a further refinement strategy, surveys of closed research instrument design tested attitudes and perceptions of the client’s current service offerings and clearly defined future ones to a selected pool of potential big pharma investors and licensing partners. The objective here was to confirm strategies for synchronizing the Biotech player’s value chain with the R&D pipeline needs of these investors. Full-scale value chain (Figure 1) and cost reduction analyses were conducted to clearly identify the organisational and operational transformations necessary for maximizing the profit margin. A full SWOT audit of the Biotech’s R&D, operational, technological and digital systems was conducted and reported for the client in a new business model road map.
(Source: A.T. Kearney analysis)
Figure 1: Biotech Value Chain Analysis