Market entry strategy

Background and objectives

Our client wished to build an oncology franchise based on their lead product, a novel minor-groove DNA binding agent. The first indication targeted was 'malignant soft tissue sarcoma'. This indication was to be followed up with these indications:

• Renal cell carcinoma
• Metastatic malignant melanoma
• Non-small lung cancer (NSCLC)
• Metastatic breast cancer
• Metastatic ovarian cancer

The primary objective was to evaluate in strategic and financial terms different market entry options, from total licensing-out of the asset to marketing the product themselves, with intermediate options of co-promotion partnerships with companies with established oncology franchises.

For the stand-alone approach a detailed European business plan was prepared which included forecasting and the valuation of different options, the most important of which was whether to employ a contract sales force.

Approach

We designed a three phase project:

• Business analysis
  • Secondary research - external data
  • Internal financial data
  • Internal interviews
  • Forecast modelling
• Financial modelling
  • Building free cash flow model and NPV models
  • Risk analysis
  • External interviews
• Solutions and recommendations
  • Evaluation of financial outputs
  • Recommendations and presentation

Results delivered

A complete going-to-market strategy based on a robust forecast and financial numbers. We evaluated seven strategic options and prioritised them based on ROI and the strategic implications and long term goals of the company.

• Greenfield - 100% organic effort
• Contract sales force
• Co-promo win-win
• Co-promo favourable-profit share
• Co-promo favourable-high milestones
• Licence-out
• Co-promotion with big pharma company