Eastwoods Consulting
Notes from the East Woods

musings on opportunities in the life science marketplace 

  November 2011 
  
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Greetings!

An unusual October snow can help us prepare for the inevitable transitions that accompany growth.  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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This Month's Features
- October Snow and Growing Pains
- Life Science Market Update
- About Eastwoods Consulting
October Snow and Growing Pains  



We're not supposed to get a foot of snow in October, but that's what greeted me the other morning - along with no electricity...  The transition from summer to winter (aka fall) is supposed to happen a little smoother - some cool crisp days, maybe a frost or two, then a few flurries in November, and frozen ground mid December.  Fall foliage covered in snow is not in the plan.

 

This disorderly move from one season to the next is similar to the growing pains many companies experience.  Instead of seamlessly adding new channels or upgrading processes, they often stumble their way to the next level.  Since growth is pretty much at the top of everyone's list, successful companies will eventuality run into these bumpy transitions.  This happens whether they are adding outside capital or building sales organically.

 

So what can you do to try to avoid getting snow on your foliage? Here are a couple ideas.

  • First is to realize that it will happen.  Companies growing from a few $M to $10M as well as those going past the $50M watermark will run in to this.  It's human nature to put your head down and grind away, assuming these little challenges are just another small hill to surmount.
  • The most obvious sign is that you and your people are getting lost in your pile of information, and becoming less organized in your execution.  Spreadsheets are no longer giving you the forecasts you need - its time to put in some infrastructure and processes that are designed for this purpose.
  • Management styles need to evolve from the collegial, flat, all-for-one approach to a more formal organization.  I'm not saying you need an HR department, but the organization needs more structure to function efficiently.
  • Last, but certainly not least, your strategy needs to move from a product or product-line focus to a broader corporate viewpoint.  A product view will get you to a couple $M, but more pieces are usually needed to build the company to the next niveau.

Growing your company is a somewhat chaotic, but supremely satisfying achievement.  But be aware that snow can fall before you expect it.  When the warning signs appear, be sure to change the way you are doing things, before the lights go out.

 



Life Science Market Update

Index

Oct Value

Change 12mo.

12 mo. High

12 mo. Low

EC BioTools

571 

-1%

730

552 

EC BigPharma

854 

6%

934

767

EC Biotech

659 

21%

734

540 



All indices rebounded nicely in October, essentially recovering all losses from the prior month; October prices are nearly identical with those at the end of August.  Two outliers, however, bear mentioning:  Illumina is down 25% in the last month due to its lowered forecast over the uncertainty in research funding, and Biogen Idec set a new high water mark on the positive news from its Phase III trial of its new multiple sclerosis drug.  Additionally Cephalon is no longer included in the EC Biotech Index as it is now part of Teva.  

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EC BioIndex
November 2011


EC BioIndex


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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, BIO, BRKR, CALP, 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 - ALKS, AMGN, AMLN, BIIB,BMRN, CPHD, DNDN, GILD, HGSI, IDXX, ITMN, NKTR, PDLI, REGN, SGMO, SHPGY, THRX, VRTX  
  •   Prices are taken at the close of each month.   
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About Eastwoods Consulting
Eastwoods Consulting

Translating Innovations into Profits for the Life Science Industrysm

Eastwoods 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.