 Notes from the East Woods musings on opportunities in the life science marketplace May 2011
|
|
|
| Greetings! |
Successfully entering the market can be like skydiving, with plenty of thrills and risk. Please have a read and feel free to let me know what you think.
Also if you missed some of our earlier Notes, you can view them all here.
Regards,
Paul Danis Founder and Principal
|
|
|
|
|
|
| Market Entry at 100MPH |

Stepping into the flight chamber, I was astonished at the unexpectedly strange sensations. As I attempted my first indoor skydive, my mind was trying to reconcile the noise, the wind, the pressure on my limbs, and the hand signals from my instructor. A similar cacophony of signals often occurs when you are bringing new products into the marketplace - noise, forces, opinions, and speed are all at play trying to upset your planned trajectory. Processing all of this at once is critical to entering the market and actually getting the results you want (usually $$$.) Granted you aren't trying to float in a 100 mph wind, but things do move quicker than you would like. - Noise - Nothing is more disruptive to a good product launch than too much noise. This can be due to a poorly-focused effort or because lots of other things are occurring around you in the market. Having a good process, a well-vetted strategy, and committed people will help you rise above the fray.
- Odd forces - Like the wind trying to deflect my arms behind my head, there will be responses from the customers and competitors. Being prepared for the possible reactions will definitely help you weather these forces. Run a few scenarios to help you plan for the buffeting.
- Heeding the signals - Trying to comprehend signals and act on them in this environment is tricky. When you first enter the market, signals will come flying back at you. Some people like your product, some hate it, some don't care. Sales people sell version X but not version Y. Paying attention to this early feedback is critical. Though your plan was perfect, you often need to heed the market signals and make adjustments to be really successful
- Speed - Moving quickly can give you a big advantage over your competitors. Once you see that you need to make some adjustments, doing this quickly and effectively across your organization and market is important. Slowly adapting to the feedback has killed many good products; so keep your foot on the gas. As the Valeant CEO, Michael Pearson, recently said, "Time is the enemy, in my mind. Speed has proven to be a real competitive advantage if you look at our history."
So when you are getting ready to parachute your products into the marketplace, take a few lessons from the skydivers. There will be new, unexpected forces at work. Paying attention to them will lead to a successful and controlled dive into your new flow of revenue. Not paying attention can lead to a very unpleasant landing. ps. in case you're wondering, that is indeed your's truly in his first flight.
|
Life Science Market Update
|
|
Index
|
Apr Value
|
Change 12mo.
|
12 mo. High
|
12 mo. Low
| |
EC BioTool
|
923
|
25%
|
923
|
609
| |
EC BigPharma
|
898
|
16%
|
898
|
703
| |
EC Biotech
|
807
|
23%
|
807
|
533
|
All indices clocked in with new highs and Biotech had a great month with over half the stocks up more than 10%. Biogen was the big gainer, up 33% on news that its new MS drug BG-12 lowered the relapse rate for MS patients. Also Shire has replaced Genzyme in the EC Biotech Index. Tools had a relatively quiet month, with advances leading declines 3 to 1 and Agilent, Waters, and SigmaAldrich showing gains north of 10%. In BigPharma, all stocks were up, except Teva; and GSK, J&J, Roche, and Sanofi were up over 10%. With King now part of Pfizer, Valeant Pharma has taken their place in the BigPharma index.
EC BioIndex April 2011
---------------------
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, TECH, TMO, WAT
- EC BigPharma Index - JNJ, PFE, GSK, NVS, SNY, LUN, ABT, LLY, AZN, WYE, BMY, NVO, BAX, TEVA, VRX.TO, ROG.VX
- EB Biotech Index - AMGN, BIIB, CEPH, GILD, BMRN, AMLN, IDXX, ITMN, SEPR, PDLI, CPHD, ALKS, REGN, VRTX, THRX, HGSI, SGMO, NKTR, SHPGY
- Prices are taken at the close of each month.
|
|
| About Eastwoods Consulting
|
Translating Innovations into Profits for the Life Science IndustrysmEastwoods Consulting helps life science companies grow their businesses. Please visit our web site or contact us to learn more about how we help companies succeed in competitive markets.
|
Copyright © 2011, Eastwoods Consulting. This publication may be freely redistributed in full or in part as long as full attribution including our contact information and web address, are included. Eastwoods is a registered servicemark of Eastwoods Consultng.
|
|
|
|
|