Eastwoods Consulting
Notes from the East Woods

musings on opportunities in the life science marketplace 

  January 2012   
  
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Greetings!

Making snow can help us create better products.  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
- Snowmaking, Duct Tape, and Good Products
- Life Science Market Update
- About Eastwoods Consulting
Snowmaking, Duct Tape, and Good Products



I tried to make snow the other day, but much to my surprise, I failed.  I couldn't believe that my exquisitely designed system of a leaf blower, hose sprayer and duct tape did not produce the wintry landscape that is absent this year.  Instead I got an icy coating on the brown grass and frozen fingers.  This similar situation befalls companies that have a "great" idea, spend a year or more turning it into a product, only to get a tepid reaction from the marketplace.

 

I had spent several months thinking about my snowmaking system so where did I go wrong, and how can you be more successful with your new products?  Here are a few suggestions.

  • Talk to the snowmaking guys.  I had skied by dozens of experts on the hills, but never stopped to ask them some basic questions about turning water into white stuff.  Be well engaged with your target customers - understand how they work, what's in their way, and whether your product will improve their world.
  • Test the snowmaker before you are in need of covering your lawn.  Getting your product in the hands of customers before it is launched is very important.  Like me, you have great ideas...but are they really going to benefit the customers as much as you think?  Better be sure on this.
  • Know the environment.  I had assumed that below-freezing air temperature was enough, but what about humidity, wind, etc?  No idea.  Look closely at your market so you are not surprised by unexpected barriers in the way of your success.  Are there regulatory issues, are your prospects funded, is the market large enough, what are the alternatives to your offering?
  • Build a better snow maker next time.  I did learn quite a bit from my failure.  Next time I will use a finer spray, colder temps, and drier air.  If your product stumbles out of the gate, all is not lost.  Be on the lookout for this early feedback and be ready to re-tool, re-position, or re-price before your product becomes maligned in the market.  View the launch as the midpoint, not the end-point of product development.

So long before you send your product out into the marketplace, be certain you really understand how well it will fit with your customers.  The alternative is thin icy cover, frozen hands, and wasted duct tape.

 



Life Science Market Update

Index

Dec. Value

Change 12mo.

12 mo. High

12 mo. Low

EC BioTools

532

-15%

722

532

EC BigPharm

884

9%

934

818

EC Biotech

647

10%

734

602



It was a relatively calm end to the year with all indices moving slightly.  Nothing noteworthy with the Tools sector as declines led advances 2 to 1.  In BigPharma, Lilly, BMS and Pfizer were up 8-10% and nearly all the others were up as well, raising the index 3% for the month.  Biotech, as usual, was more volatile with shares wagging plus or minus 5-10% for a net change of ~0% for the index.  The big loser was Intermune off 31% for the month after the German health agency said their lung-disease drug, Esbriet, offered little benefit to patients.

 
EC BioIndex
January 2012





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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, 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.
 


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