Eastwoods Consulting
Notes from the East Woods
musings on opportunities in the life science marketplace

April  2009    
  
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Greetings!

Here are some suggestions on getting traction with your products during mud season.  Please have a read and feel free to let me know what you think.  Thanks.

Regards,

Paul Danis
Founder and Principal
 
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This Month's Features
Traction and Mud
Life Science Market Update
Traction and Mud
Muddy Road



I had an uneasy feeling as the car wheels slid sideways in the mud.  Spring is here and with it comes warmth, buds, birds, ... and mud.  Getting traction in the slippery stuff is sometimes a tricky thing.  More effort usually gets you moving less.  Similarly, I often see wonderful products come to the market with lots of effort behind them, but somehow they just don't get traction.  So why do some products take off while others spin their wheels.
 
In the simplest sense, if no one is buying the product then it is not solving a problem.  Conversely if they do buy it then it must help with some problem.  However, lack of traction is often caused by several additional factors.
  • Demand for the product (or service) is overestimated
  • Potential customers are uncomfortable taking the leap to a new product
  • People hearing about the product are the not the right type of customers
  • The product only solves part of the problem, not the whole of it
Getting traction in a slippery (competitive) environment is usually a combination of doing many things right.  Here are some ways to improve your chances of success
  • Use tires with good tread (or chains).  Having the right product for the right customers is an essential starting point.  Having the customers say this to their friends is even better.
  • Use more horsepower.  It takes a lot of effort to inform people about a new solution to their struggles.  Working on many fronts with a unified message is necessary to get noticed and get people interested.
  • Limited slip differential or posi-traction. When one wheel spins, power is put to the other wheels.  Use a multi-pronged effort to get people to feel they need the product.  Thought-leaders, publications, podium time, and PR programs are all needed.
  • Hook onto something solid and pull.  If there is a stout solution that is well accepted by the customers, partner with it for leverage into the market
  • Just drive around the mud.  Find a market niche where you can be sure you will not spin your wheels hoping for customers to hug your product.
Though driving in the mud is challenging and somewhat unnerving, having good treads, starting out at the right speed or simply avoiding it entirely will insure that your products are well accepted and get the traction you are expecting.
Life Science Market Update

Index

March Value

Change YTD

Yearly High

Yearly Low

EC BioTools

448

1%

448

411

EC BigPharma

673

-9%

709

617

EC Biotech

463

-5%

487

431

One of the most memorable ticker symbols in the industry, DNA, has disappeared with the acquisition of Genentech by Roche.  Otherwise there is a general rise over the last month with the tide lifting almost all stocks. Surpsisingly the Tools sector has been less volatile than Pharma or Biotech and has actually gained over the year end value.

Changes to the Indices are that DNA (Genentech) is no longer included, and Roche is changed from RHHBY.PK to ROG.VX.


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Many of the life science indices currently available are a mixture of various types of companies. In order to better assess the situation in the different segments, Eastwoods Consulting has created these price-weighted indices for the sectors of large pharmaceutical companies, biotech companies, and life science research tools companies.
  • EC BioTools Index - A, ACCL, AFFX, BEC, BIO, BRKR, CALP, DNEX, HBIO, HLCS, ILMN, LIFE, LMNX, PKI, QGEN, SIAL, TMO, VARI, WAT
  • EC BigPharma Index - JNJ, PFE, GSK, NVS, SNY, MRK, ABT, LLY, AZN, WYE, BMY, NVO, BAX, TEVA, SGP, ROG.VX
  • EB Biotech Index - AMGN, GENZ, BIIB, CEPH, GILD, BMRN, AMLN, IDXX, SEPR, OSIP, PDLI, CPHD, ALKS, REGN, MEDX, THRX, HGSI, SGMO, NKTR
  • Prices are taken at the close of each month.
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About Eastwoods Consulting
Eastwoods Consulting


Eastwoods Consulting helps companies connect their technologies and products with the life science marketplace.  By focusing on the most valuable opportunities, efficiency is increased, and profits grow.
 


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