Clinical Pipeline Strategic Review, Streamlining R&D to Build Value
Case Details
Client: Specialty Pharmaceutical Company
Location: United States
Client need: Strategic Pipeline Review
Result: Aligned R&D with commercial and financial priorities, identified potential $100 -$200 M revenue deficit and provided a comprehensive plan to avoid it.
The Challenge
A new CEO was recently hired. The Board of Directors hired Shadow Lake Group to conduct a strategic review of the clinical pipeline and subsequently make recommendations to inform the new CEO on the status of the organization’s pipeline.
What Did Shadow Lake Do?
Shadow Lake reviewed the clinical pipeline from the following perspectives:
- Commercial viability
- Clinical differentiation
- R&D Costs
- Timelines
- Lifecycle management
- P&L evaluation of the entire company incorporating future R&D costs
The Results
Shadow Lake Group discovered that the company, based on its current track, was heading towards an undetected potential $100M-$200M revenue shortfall. The discovery was instrumental in helping re-align R&D and existing commercial priorities.
Shadow Lake Group recommended that numerous development activities be stopped due to poor commercial potential and poor probability of positive clinical success.
All directional recommendations were implemented or attempted to be implemented by new management. Company went on to improve its balance sheet and was acquired by a leading pharmaceutical company for $1.2B.