 Notes from the East Woods musings on opportunities in the life science marketplace June 2011
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| Greetings! |
We all have agendas. But knowing when to change them is what matters. 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
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| Airplanes, Storms, and Agendas |

As we were taxiing down the runway at Denver airport recently, the pilot gently glided the plane over to the side and stopped. A collective sigh was heard as we all anticipated the usual explanations for the delay. The pilot came on to tell us that a series of storms in the Midwest was preventing us from flying directly to Boston, and we have been re-routed to a northern route over Minnesota. Our agenda had been altered from taking the fastest trip to Boston (happy customers, less fuel) to avoiding the nasty storms that would rattle the passengers and shake the plane. Similarly many companies at the recent conference I attended came in with agendas set on growth and prosperity, only to find storm clouds upsetting their plans. New products from the competition, unexpected customer reactions to their offerings, or ground-breaking developments have all caused companies to reset their agendas. If we look at agendas, which hopefully you all have, they usually have 2 or 3 main items and fall into a few simple buckets.
- Growth - innovation, M&A
- Costs - do more with less
- Capital - finding $$ to fuel growth
- Risks - gotcha's and surprises
- People - the right people to move the agenda
That's about it. Pick your most critical couple areas of focus and get the company lined up behind them. Sounds simple enough, and if asked you can usually say - we are focused on "getting our costs of goods in line," or "developing our market for IVD's" Agendas really have 2 parts to them - first is picking the right one, and the second is knowing when it needs to change. Picking the right one flows from your overarching strategy, and assuming you have a good plan, your agenda should be clear. However, when some storms appear in your path, you need to asses whether your agenda needs to change. Here are few indicators that your direction needs adjustment - Timelines are being bent beyond reason
- Many of your assumptions are proving inaccurate
- Your people are losing confidence in their ability to meet the goals
- Your sales or costs are trending in the wrong directions
None of these are fatal flaws unless they are ignored. People and companies are extremely malleable, and with good leadership can be steered onto the right route. So when you detect storm clouds on the horizon, be sure to take stock of your agenda. If you can weather the storm, then proceed ahead; but if you expect some unhealthy buffeting, then reset your agenda. Though this should not be a knee-jerk to the challenges you face, it is important to realize when you need to take the longer, yet smoother route to your destination.
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Life Science Market Update
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Index
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May Value
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Change 12mo.
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12 mo. High
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12 mo. Low
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EC BioTool
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930
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33%
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930
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609
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EC BigPharma
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934
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36%
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934
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703
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EC Biotech
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814
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46%
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814
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533
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Tools had a relatively calm month with advances and declines balanced out, resulting in an overall gain of 1% and a new high. BigPharma moved upwards 4% for the month with nearly all companies showing small gains. Biotech was more volatile with Alkermes up 27% on their big deal with Elan, and Regeneron up 18% on the positive expectation of FDA's review of their new wet-AMD drug. Intermune has continued its slide after its big jump up early in the year - down 17% for the month. Insider selling doesn't help the matter.
EC BioIndex May 2011
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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, 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.
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| About Eastwoods Consulting
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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.
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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.
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