1 / 20

Small is beautiful.. Winning in the highly competitive generics market

Small is beautiful.. Winning in the highly competitive generics market. It’s not the size, it’s what you do with it that matters!. Presented by John Beighton. An entrepreneur’s dilemma. How to grow without losing the “spirit” of what creates value The AMCo case study…. Company Origins.

acacia
Download Presentation

Small is beautiful.. Winning in the highly competitive generics market

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Small is beautiful.. Winning in the highly competitive generics market

  2. It’s not the size, it’s what you do with it that matters!

  3. Presented byJohn Beighton

  4. An entrepreneur’s dilemma How to grow without losing the “spirit” of what creates value The AMCo case study…

  5. Company Origins £465m 2012 2012 2013 2013 2010 £367m Oct Aug Dec May Dec

  6. Management Team

  7. Unique business model with industry leading margins and cash generation, replicable across geographies and therapeutic areas Optimise existing portfolio and acquire niche products Acquire and develop difficult-to-make niche products which are below the radar of larger pharma companies with attractive margins and growth opportunities Local presence in selective markets will enable successful product commercialisation(e.g. pricing, portfolio optimisation, market insight, leveraging distributor network, etc.) Leverage market knowledge Network of CMOs and distribution partners enables high flexibility and efficient capital utilisation, while driving costs down and securing stable long-term supply of goods and services Apply asset light model Use low cost support Low cost Centre of Excellence for support functions in India (e.g. RA, Supply Chain, Finance, IT, Quality, HR) ensures high-quality support and cost effectiveness

  8. Unique business model underpinned by three critical enablers Financial strength Cash generating engine based on asset light, highly profitable business model enables organic and inorganic growth opportunities Large enough to commercialise multinational product portfolios, while staying nimble and agile Replicable business model across geographies and therapeutic areas Right size and scalable Entrepreneurial mindset AMCo has an embedded entrepreneurial mindset with fast decision making and the ability to implement quickly

  9. 1 Global generics companies with strong presence in commodity Gx; strategic focus on specialty Gx 5 Large R&D companies with broad range of branded innovative products being sold across the world Mostly Global 2 Mid-sized commodity generics players moving up the value chain into differentiated products and mature brands 6 Mid-sized Specialty Pharma companies with therapeutically-focused innovative pipelines Selectiveglobalisation beyond local markets Extent of geographic diversification Commercially-focused players, with primary expertise in a single market Development- focused co’s, finding new, local customer solutions 3 4 7 Focused R&D players with deep expertise in specific technology platforms; limited front end presence; partner/sell products to large players for marketing/devt Mostly local Commodity Gx Differentiated Gx (DGx) Branded specialty NCE / NBE

  10. Five strategic Business Action Plans (BAPs) can be derived from the overarching strategy Leverage AMCo's unique business model to expand in other attractive markets and to broaden niche product portfolio Description Strategic BAP Strategic Growth We will increase revenues through Portfolio Optimisation, acquisition of products and infrastructure, and through new products launches 1 We will increase revenues through establishing direct market presence and developing internal expertise to support the International markets International Excellence 2 Operational Excellence We will ensure customer satisfaction by ensuring that product is reliably supplied when required 3 We will remain compliant and ethical with all our stakeholders, whilst also being adequately structured to support rapid growth plans 4 Compliance and Reputation 5 Integration and Culture Fast and effective integration is critical to support long-term growth and our people are key to supporting it

  11. Strategic Growth • Portfolio Optimisation – registering existing AMCo products into new markets where the product isn’t currently registered or sold, and using the existing manufacturers to make the product (at least 40 submissions made in 2014) • Product Development – creating new products with a contract development partner, whereby AMCo retains full ownership rights to the product, and freedom to choose who to manufacture the product • In-Licensing– buying the rights to sell a third party’s product in a defined territory, and agreeing for the licensor to supply the product to AMCo for an agreed period of time (typically 5 years) • Product Acquisitions– buying the permanent rights to own an existing product, in a defined territory (sometimes global e.g. Fucithalmic). The seller may wish to continue making the product, but more often would require AMCo to find a new supplier within 2-3 years

  12. Background: The In-market value chain The diagram below represents a break down of the in-country value chain and the indicated key strategic drivers / actions related to each part. I II III IV V VI VII Market potential Regulatory Coverage Sales Marketing Pricing Distribution Geographic coverage of- Hospitals- Doctors- Wholesalers Specialist conferences / KOLs E-marketing (B2C for OTC) Sizing the opportunity Product selection Dosage / form adaption Registration of new products Pricing regime Legal frameworks Medical Promotion- by Salesforce- Controlling Salesforce / “Managing margin”- Selling discounts- Creating promotion materials- Telesales Price elasticity Competitive environment Supply chain optimisation / no stock-outs Order taking / invoicing / collection Box shifting Reporting Data analysis

  13. Global Coverage >50% of sales in UK AMCo offices/direct presence Distributor network

  14. International Excellence AMCo offices/direct presence Distributor network Target markets – direct presence

  15. Five Distinct go-to-market approaches for AMCo Distributor 1 Distributor Distributor 2 Distributor Joint AMCo / Distributor 3 II I III IV V VI VII 4 Distributor AMCo 3rd Parties Market potential Sales Pricing Marketing Distribution Coverage Regulatory 5 AMCo Distributor 4 5 1 2 2 3 3 4

  16. Operational Excellence in an asset light context • Critical Success Factors • Flexibilityand having optionsfor supply • API • Finished dosage form • Dual(or triple) sourcesfor key products and APIs • That are registered and maintained in the MAs • That remain in a validated status • Strong Supplier Relationships • Contractual protection • Results in a low risk supply chain

More Related