Strategic alliances in Life Sciences

Life sciences companies have adopted a multi-track approach to cope with the current and anticipated drop in sales revenue, including cutting costs and staff; expanding business in emerging markets; recalibrating business models and research priorities; using real-world d evidence and emphasizing a product’s clinical, safety and economic impact to articulate their value proposition. Next to classic mergers and acquisitions (M&A) Strategic Alliances have proven to be a viable alternative in coping with these challenges.

As the drop in sales and revenues results from a plethora of challenges, from patient cliff to regulatory changes, Deloitte believes that M&As are potentially not the only course of action. Actively engaging in alliances is a viable alternative to M&As to adopt a more network-oriented business. However, this is easier than done and establishing successful alliances is a complex process.

Using personal interviews with senior life science industry leaders, substantiated by previous research and extensive project experience, Deloitte undertook a study to assess the alliance capabilities of companies in the life science industry, with a focus on current performance, commonly identified challenges, and success factors. This report on Strategic Alliances in Life Sciences summarizes the findings of the study.