SOURCE: Cutting Edge Information

June 06, 2008 09:28 ET

Top-Level Support a Challenge for Pharma Business Development Teams, According to Cutting Edge Information

RESEARCH TRIANGLE PARK, NC--(Marketwire - June 6, 2008) - A new study by pharmaceutical leader Cutting Edge Information finds that pharmaceutical business development groups often struggle to win buy-in from senior management. Success can mean the difference between winning a key deal or losing out to competitors.

The report, "Business Development: Accelerating the Deal" (www.PharmaDealMaking.com), examines business development (BD) structures, resource levels and strategies of BD groups. It also explores BD processes and strategies at stages throughout the deal-making process: identifying and evaluating deal opportunities, completing due diligence, negotiating terms and finalizing the deal.

On a scale from 1 to 10 (10 indicating most difficult) companies ranked earning senior executive leadership's support as a 6.3 and negotiating a deal, 6.1. Other challenges companies face include maintaining alliance management (6.0), completing due diligence (5.0), and establishing partnership relationships (5.7).

"How firms respond to these obstacles is critically important," said Eric Bolesh, lead author of the report. "Business development teams that can pull together significant internal support for a deal, including senior leaders and other important stakeholders, stand a far better chance of inking a contract."

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. Developed from surveys and interviews with executives at leading pharmaceutical and biotechnology companies, the report shows BD teams how to overcome challenges, align partnership objectives, improve relationship-building, and drive the deal to completion.

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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