 Notes from the East Woods musings on opportunities in the life science marketplace December 2012
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| Greetings! |
A freezing rain creates a model for good execution. Please have a read and feel free to let me know what you think.
And I wish you all a Happy Holiday Season.
Regards, Paul Danis Founder and Principal
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Icicles and Execution
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The icicles that formed on the roof edge were a pleasant gift from the [thankfully] uneventful ice storm on Monday. All of them were similarly shaped and marched downward as the freezing rain extended their lengths. This alignment of ice reminded me of companies trying to execute their plans for growth, expanding in new geographies or a doing a myriad of other activities.
Though rain, freezing temps, and gravity are all that is needed to form the icicles, getting one's organization to move in unison is a whole different matter. Many companies often have excellent, well-vetted plans for improving their lot in the world, only to stumble as they start to move towards their goals.
So why is it that the doing part is much harder than the planning part? I think it comes down to one simple difference - dynamics. A strategic plan is a snapshot of a desired future and a map to get there. But after hitting the 'go' button the world starts to change and starts to look different.
- Small mistakes creep in and are unnoticed or worse, uncorrected
- Communication across departments or groups is insufficient
- Initial assumptions prove to be way beyond rosy
- Unpredicted market changes occur
- People in your organization are just not as excited about this as you
With this suite of dynamics in charge of your outcome, it is no wonder that many plans never turn into reality. Well here are a few ideas on how you can help your organization move in one direction like the growing icicles.
- Besides insuring that the direction and plan for your organization is sound, be sure it gets a good amount of air time with the people that must do the building.
- Instead of a single roadmap to success, build in some contingencies just in case your competitor launches a killer app before you.
- Immerse yourself in lots of feedback on the progress, at all levels. And listen. Make adjustments to the plan if necessary.
- If your resources are strapped, consider bringing in outside help to shepherd things along or even to grab a hammer and bang some nails.
- Remove fear. This is the number one barrier to getting reality infused into the organization. Make it OK to pass on bad news, question a decision, or point our weaknesses
By realizing that there are many dynamic forces trying to throw you off your path, you can spend the effort to help you organization march towards your big goals. Like the icicles growing earthward, you can have your organization creating beautiful things, even in the midst of nasty weather.
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Life Science Market Update
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Index
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Nov. 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 BioTools
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635
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17%
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640
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532
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EC BigPharma
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1020
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19%
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1020
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879
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EC Biotech
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865
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38%
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865
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628
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Overall a good month for the Life Sciences as all indices are near or at their 12 month highs. The Tools sector was up 5% for the month and advances led declines 7 to 1. Notable was Bruker up 21% on its higher than expected earnings. The BigPharma index was rock steady with small changes amongst its members resulting in less than a percent change for the month. Biotech provided the most drama with the index up 7% for the month. In addition Nektar dove 28% on a downgrade over safety concerns on its opioid-induced constipation drug, Naloxegol, developed in collaboration with AstraZeneca. At the other end of the spectrum Regeneron was up 24% on news that its cancer drug, Zaltrap, has won EU approval.
EC BioIndex December 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, 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, RO.sw
- EB Biotech Index - ALKS, AMGN, BIIB, BMRN, CPHD, DNDN, GILD, IDXX, ITMN, NKTR, PDLI, REGN, SGMO, SHPG, THRX, VRTX
- 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 © 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.
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