SOURCE: Cutting Edge Information

September 17, 2008 08:18 ET

New Cutting Edge Information Study Finds Companies Lack SOPs in Pharmaceutical Deal-Making

RESEARCH TRIANGLE PARK, NC--(Marketwire - September 17, 2008) - 86% of companies have a loosely structured deal identification process, according to a new study by pharmaceutical intelligence leader Cutting Edge Information. 48% of companies report having a somewhat structured deal identification process, while the other 38% use no real structure or protocol. According to the new study, having a flexible deal identification process allows companies to fit the individual needs of the deal (www.PharmaDealMaking.com).

In fact, only 14% of companies report using a strict course of standard operating procedures. Though some small companies enjoy having a standardized method for evaluating potential deals, many of them build flexibility into their models -- small companies only evaluate a handful of deals each year and are able to take customized approaches with each.

As organizations grow, they often implement stricter protocols because departments are asked to handle higher volumes of deals. Even so, organizations of all sizes are giving individual business development departments some freedom in their determinations of suitable deals. BD teams realize that each partnership has its own quirks and challenges. By adopting flexible deal evaluation standards, companies allow their BD departments to meet each deal's individual challenges head on.

"Companies are looking for ways to allow their internal personnel to conduct business efficiently while also meeting the specific needs of individual partners," says Eric Bolesh, lead author of the study. "As a result, the focus is not on strictly following standard operating procedures but on finding manageable methods for evaluating deals."

The 174-page report covers every aspect of BD management. It enables companies to build a first-rate BD function and to facilitate the steps leading toward closing a deal.

The report contains more than 400 metrics and benchmarks, including the following:

--  Business development team headcounts
--  Business development team budgets
--  Cross-functional involvement in evaluation of new deals
--  Deal-making process timelines
--  Stages of development and marketing during which companies close
    inbound and outbound deals
--  Royalty levels
--  Business development reporting structures
--  Deal warning signs
--  Best practices for each stage of the deal-making process
    

A summary of the report is available for immediate download here: http://www.cuttingedgeinfo.com/pharmadealmaking/PH118_Download.asp#body.

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