Capability-Driven PMI: Realizing the Promise of BioPharma

10 Pages Posted: 1 Oct 2009 Last revised: 6 Nov 2012

Date Written: September 28, 2009

Abstract

With the search for next generation drugs getting harder, longer, and more expensive, pharmaceutical companies are scrambling to develop a broader suite of relevant capabilities (e.g. specific disease areas, high throughput drug screening, payor management, etc.). For example, biotech companies appear to have advantaged capabilities around development success rates - a more productive discovery capability focused on basic sciences and biology. In Bio-Pharma integrations, Pharma commercial capabilities are married with Biotech small molecule discovery, development, and licensing capabilities. Relevant scale can be increased in both development and marketing by leveraging across multiple therapeutic areas and geographies, as well as across both chemical and small molecule mechanisms. Integration must be shaped around the deal’s strategic intent to deliver on the strategic agenda. Merger integration has traditionally been more about merging positional assets than building capabilities, and tended to focus on footprint, headcount and cost reductions. Yet, BioPharma integrations are more about capability-building.

Keywords: Mergers & Acquisitions, M&A, Post Merger Integration, PMI, Pharma, Biotech, BioPharma

JEL Classification: G34, D2, I19, L2, M10

Suggested Citation

Adolph, Gerald and Hutchens, Robert and Pettit, Justin, Capability-Driven PMI: Realizing the Promise of BioPharma (September 28, 2009). Available at SSRN: https://ssrn.com/abstract=1479889 or http://dx.doi.org/10.2139/ssrn.1479889

Gerald Adolph

Booz & Company ( email )

101 Park Avenue
New York, NY 90045
United States

HOME PAGE: http://www.booz.com

Robert Hutchens

Booz & Company ( email )

101 Park Avenue
New York, NY 10178
United States

Justin Pettit (Contact Author)

Independent ( email )

United States
9146092011 (Phone)

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