Case Study: Corporate strategy and franchise planning

See how Kx Advisors helped a top 10 pharma company develop a 10-year investment plan to maintain market leadership

The Problem

A top 10 pharma company sought to reinvigorate its market-leading franchise. Anchored by a blockbuster drug with a history of successful indication expansions and double-digit annual growth, the franchise was facing both differentiated and “me-too” entrants. In the near-term, the business faced threats to its market share, while pipeline gaps that threatened its long-term leadership position. Looking for new avenues for growth to meet its targets, the client engaged Kx Advisors to develop a holistic franchise plan and strategy.

How Kx Helped

Kx helped the client analyze the market landscape and key threats, identify and prioritize both internal and external options for investment, and develop a 10-year strategy to maintain market leadership:

  • Gap analysis: As a first step, Kx analyzed the client’s funded pipeline programs to develop a baseline growth forecast, and understand the size of the anticipated gap between current funded programs and the franchise’s growth targets
  • Market landscape assessment: Kx then surveyed the broader market to assess key trends, threats, and unmet needs, and profiled key competitors, identifying attractive early and late-stage assets for potential BD and licensing opportunities for growth
  • Organic opportunity development: Next, Kx solicited input from cross-functional experts to develop an inventory of potential options for internal development, including assets and indications that had been shelved or put on hold due to budget constraints, as well as new expansion opportunities that had yet to be considered
  • Opportunity prioritization: With a list of both internal and external options, Kx evaluated and scored each option using a prioritization framework that considered both quantitative (revenue, development costs, NPV) and qualitative criteria (strategic fit, competitive intensity, leadership potential)
  • Strategy development: Synthesizing our research and analysis, Kx developed a 10-year strategy and P&L forecast for the franchise. The plan included our view of the current landscape and threats, the business case for investment, and recommended options for funding to close the anticipated growth gap. The client used this 10-year strategy to plan funding of internal clinical development programs and guide external BD&L engagement.