Alacrita Asks "Are We All Biotech Now?"

LONDON, June 23, 2011 -

Alacrita, which is changing the face of life science consulting,
has published an insight into the future development of the global
pharmaceutical industry. In the whitepaper, Alacrita sets out a
vision of how the industry may look as it evolves in response to
the challenges it faces and reflects on the decisions it has made.
In particular, Alacrita considers whether the industry will reverse
the unparalleled consolidation seen in the past 25 years to produce
a diversity of strategically independent participants that operate
along an extended pharma value chain. Such a split into distinct
innovators, service providers and marketers would represent a
wholesale adoption of the biotech model.

The article, written by Alacrita partners Anthony Walker and Rob
Johnson, was published in the June issue of Business Development
and Licensing Journal (Ref. 1) and is available at href="www.alacritaconsulting.com/">www.alacritaconsulting.com.

“The pharma industry has undergone significant change over the
last decade as it has tried to maintain double digit growth and
profitability in the face of decreasing R&D productivity,
looming patent cliffs and increased focus on containing healthcare
costs,” said Dr Walker. “Aggressive M&A strategies haven’t
solved the problem, and we are seeing heightened activity in
franchise management where portfolios are being vigorously reshaped
through a combination of acquisition, licensing and partnering on
the one hand, and project terminations and divestments on the
other.”  

“Pharma companies are increasingly becoming more focused and
streamlined, with a greater emphasis on building core strengths and
shedding non-core assets. Funds are being shifted to activities or
functions that add the greatest value and if ‘greatest value’
requires a function to be carried out by an external party, then so
be it,” added Mr Johnson. “If the major pharma players are no
longer one-stop shops and are streamlining themselves to focus on
core capabilities, then where is this heading?”

As a result of its analysis, Alacrita proposes that the industry
could transform itself into a series of smaller, focused and more
dynamic enterprises, i.e.

• Research and early development companies (’EarlyCos’)
• Late stage development, marketing and sales companies
  (’LateCos’)
• Functional service providers (’FSPs’), which undertake
  preclinical development, pharmaceutics, process
  development/manufacturing, etc.

Dr Walker added, “A greater drive towards outsourcing and more
extensive deal-making will see the pharma industry further
embracing the biotech model and leading to a highly competitive
industry where only the strongest and fittest survive.”

Reference

1. A. Walker & R. Johnson, An alternative future for the
   pharmaceutical industry. Business Development and Licensing
   Journal (2011) Issue 15, 6-8.

About Alacrita Consulting

Alacrita is rapidly growing consultancy that provides tailored,
value added solutions to clients in the pharmaceutical,
biotechnology and life science sectors.

Alacrita applies its real-world expertise and experience to
rapidly assess and understand the challenges faced by its clients
and to develop solutions that exactly meet their needs. This
blueprint is then used to access the Alacrita consultants best
suited to deliver projects on time and on budget.

Alacrita provides its clients with access to consultants who
combine extensive international industry experience (strategic,
technical and commercial), broad functional capabilities and a
track record of success across the life science sector.

In addition, Alacrita’s network of more than 50 consultants with
“hands on” management experience allows it to solve client
resourcing needs at critical times in their corporate
development.

Since inception, Alacrita and its network have completed
successful consulting projects for big pharma, biotech companies,
life science investors, government bodies and charities.

href="www.alacritaconsulting.com/">www.alacritaconsulting.com

For further information, please
contact:

Anthony Walker or Rob Johnson, href="mailto:awalker@alacritaconsulting.com">awalker@alacritaconsulting.com
or href="mailto:rjohnson@alacritaconsulting.com">rjohnson@alacritaconsulting.com
, +44(0)207-691-4915

.