 Notes from the East Woods musings on opportunities in the life science marketplace October 2012
|
|
|
| Greetings! |
A surprise is a rare occurrence these days, so here are a couple ideas on how to use it to your benefit. Please have a read and feel free to let me know what you think.
Regards,
Paul Danis Founder and Principal
|
|
|
|
|
|
The Art of Surprise
| 
When I opened the grill last night, I was surprised to find three little gray mice staring back up at me. Though I was a little startled, I could tell that the pulsating little fur balls got the worst of it. It made me think of when I had been surprised, and how seldom it had happened. If I look at the life science marketplace, it is an even rarer occurrence.
So what is a surprise other than a mismatch between what you expect and what you experience? Quite simple from this perspective. On one hand, you definitely want to avoid the negative surprises like lost orders, key employees leaving, missed revenue, or newly discovered flaws in your product about to launch. But on the positive side, when have you released a product that completely surprises the customers and media with its performance, sleekness, or desirability. I suspect your list is short.
The truth is, 99.3% (my number) of all new offerings are incremental improvements to what is already in the market. And if it is in the 0.7% of groundbreaking things, you probably let the cat out of the bag long before you hit the launch button. So what can you do to create that impactful positive surprise? Here are a couple ideas.
- Think long and create great stuff - Though you probably need to roll out new products regularly to keep revenue and growth moving in the right direction, you also need some riskier plays that may have a big impact. Take a portfolio view of your product development and determine how many projects are enhancements, how many are scouting options for assessing markets, and how many are potential grand slams. Depending on your near-term revenue needs and ability to invest in development, a balance across these types of projects is necessary.
- Knowledge is indeed king - Since your development cycles are probably at least 2 years, you need a really good idea of the longer term problems that your customers are facing. What are the systemic challenges that you want to address - is it high development costs, leaky supply chains, low efficacy of therapies, or developing world opportunities?
- Mind the gap - As I mentioned above, expectation gaps fuel surprises. When you do have the good fortune to be on track to take the market to a whole new level, have the discipline to keep a lid on it. Like the upcoming presidential debates, all the pre-debate spinners are trying to set the expectation low so they can pull off the surprise performance.
So rather than stumble upon shocking moments like rodents in your face, take the time and effort to map out a clear path. Know where to go, take big steps, get ready for the launch, and enjoy the benefits of creating a really surprising product.
|
Life Science Market Update
|
|
Index
|
Apr. Value
|
Change 12mo.
|
12 mo. High
|
12 mo. Low
| |
EC BioTools
|
629
|
16%
|
640
|
532
| |
EC BigPharma
|
1007
|
23%
|
1007
|
854
| |
EC Biotech
|
853
|
42%
|
853
|
626
|
The Tools sector continued its buoyancy, up 6% for the month, with all stocks posting gains. Likewise the BigPharma Index was up 3% with all stocks gaining. Additionally this month set a new high water mark for the index. Biotech was its usual more volatile self with advances leading declines 7 to 1. Of note is Nektar's 24% pop, which can be attributed to its positive phase 1 data on its new analgesic. Also InterMune is up 22% on news that its pulmonary fibrosis drug, Esbriet, has been approved for reimbursement in France to the tune of €25,000 per patient per year. EC BioIndex October 2012
---------------------
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, 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, BIIB,BMRN, CPHD, DNDN, GILD, IDXX, ITMN, NKTR, PDLI, REGN, SGMO, SHPGY, THRX, VRTX
- 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 © 2012, 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.
|
|
|
|
|