Overview

Companies

Metrics

Practices

Purchase

- Budget and headcount data for 18 business development functions:

• Seven groups that formally review 0-5 deals each year

• Five groups that formally review 6-20 deals each year

• Six groups that formally review more than 20 deals each year
   

- Formalized alliance management structures.  Key metrics include:

• Alliance management budgets for the 18 functions listed above

• Alliance management headcounts for the 18 functions listed above

• Prominence of formal alliance management groups in different industry tiers
   

- Budget and headcount data for 12 "inbound" deal-makers and 9 "outbound"
 deal-makers
 

- Further charts and data exhibits are listed in the table of contents below:

EXECUTIVE SUMMARY
Figure E.1: Average Number of Inbound/Outbound Deals..............14
Figure E.2: Average Number of Deals Reviewed and Closed..............14
Figure E.3: Business Development Investment: Average Levels..............16
 

CHAPTER 1: BUSINESS DEVELOPMENT RESOURCE LEVELS
Figure 1.1: Business Development Investment: Average Levels..............24
Figure 1.2: Business Development Staffing: Average Levels..............25
Figure 1.3: Business Development Investment: Companies Reviewing 0-5 Deals..............27
Figure 1.4: Business Development Staffing: Companies Reviewing 0-5 Deals..............27
Figure 1.5: Business Development Investment: Companies Reviewing 6-20 Deals..............28
Figure 1.6: Business Development Staffing: Companies Reviewing 6-20 Deals..............29
Figure 1.7: Business Development Investment: Companies Reviewing More than 20 Deal.............. 30
Figure 1.8: Business Development Staffing: Companies Reviewing More than 20 Deals..............31
Figure 1.9: Formal Alliance Management Sub-Functions..............32
Figure 1.10: Alliance Management Resource Support..............33
Figure 1.11: Formal Alliance Management Groups: Companies Reviewing 0-5 Deals..............34
Figure 1.12: Formal Alliance Management Groups: Companies Reviewing 6-20 Deals..............34
Figure 1.13: Formal Alliance Management Groups: Companies Reviewing More than 20 Deals..............35

Deal-Making Strategy
Figure 1.14: Strategy Behind Inbound Deals..............39
Figure 1.15: Strategy Behind Outbound Deals..............39
Figure 1.16: Investment Among Inbound Deal Makers..............40
Figure 1.17: Staffing Among Inbound Deal Makers..............41
Figure 1.18: Investment Among Outbound Deal Makers..............41
Figure 1.19: Staffing Among Outbound Deal Makers..............42
Figure 1.20: Alliance Management: Inbound vs. Outbound Deal Makers..............43
Figure 1.21: Licensing Enters the Pipeline..............44
Figure 1.22: Cross-Functional Deal Making..............45
Figure 1.23: Company D’s Licensing Strategy Structure..............50
Figure 1.24: Generics Partnering..............55

Reputation and Partner-of-Choice Status
Figure 1.25: Steps to Partner-of-Choice Status..............64
 

CHAPTER 2: BUSINESS DEVELOPMENT STRUCTURES AND PROCESSES
Business Development and Licensing Structure
Figure 2.1: Company B’s Business Development Structure..............76
Figure 2.2: Company C’s Split System..............80
Figure 2.3: Company B’s Global BD&L Function..............83
Figure 2.4: Company B’s Small BU Business Development Reporting Relationships..............83
Figure 2.5: Company F’s BD&L Structure..............88
Figure 2.6: Company H’s Structure..............90
Figure 2.7: Company B’s BD&L Finance Team..............92
Figure 2.8: Company AJ’s Structure..............95
Figure 2.10: Company AI’s Structure..............95
Figure 2.9: Company AH’s Structure..............95
Figure 2.11: Company K’s Structure..............95
Figure 2.12: Virtual Pharma Model..............99
Figure 2.13: Deal-Making Duration..............100

Opportunity Identification and Evaluation
Figure 2.14: Average Number of Incoming/Outgoing Deals..............103
Figure 2.15: Alliance Identification..............106
Figure 2.16: Basic Market Assessment..............108
Figure 2.17: Company G: Alliance Review Process..............115

Due Diligence
Figure 2.18: Master Due Diligence Model..............118
Figure 2.19: Warning Signs..............119
Figure 2.20: Company Z’s Ideal Timeframe..............121
Figure 2.21: Company Z’s Structure and Headcount..............128
Figure 2.22: Vetting Deal Opportunities..............129
 

CHAPTER 3: CLOSING AND MANAGING DEALS
Figure 3.1: Managing Alliances..............140
Figure 3.2: Advantages/Disadvantages of Alliance Types..............140
Figure 3.3: Deal-Making Duration..............141

Winning New Deals
Figure 3.4: Average Number of Deals Reviewed and Closed..............152

Alliance Management
Figure 3.5: Failure Among Inbound Deals..............156
Figure 3.6: Failure Among Out-Bound Deals..............156
Figure 3.7: Product Stages for Inbound Deals..............159
Figure 3.8: Product Stages for Outbound Deals..............160
Figure 3.9: Alliance Communication..............163
Figure 3.10: Alliance Handoffs..............166