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Biopharma Resilience in Uncertain Times

Faced with worldwide inflation and the growing risk of an economic recession, the financial environment for biopharma companies has shifted significantly in 2022. With valuations dropping and near-term IPO hopes dimming, biotech is forced to navigate uncharted waters and confront the reality of a major market reset.

For some early- to mid-stage biopharma companies, the challenge may seem overwhelming. In addition to navigating reduced access to capital, they must continually adjust to a business and workforce landscape that has been reshaped by the Covid-19 pandemic.

To address some of these challenges, we discuss several ways companies can remain nimble during uncertain times and maximize their ability to secure financing while continuing to advance their key pipeline asset(s).

Elevate Your Investment Story

As financing options narrow, communicating a compelling investment story matters more than ever. An important part of the story is demonstrating a clear understanding of “what it will take” to commercialize the asset and achieve maximum value. For emerging companies – lacking infrastructure and surrounded by uncertainty – the task can seem overwhelming. How can the team articulate the plan before they have the data, the resources, or the capabilities to defend it?

Corval is a cloud-based commercialization planning platform that offers an innovative solution in this time of uncertainty. Its proprietary algorithm, informed by decades of deep biopharma commercialization experience, illustrates the full scope of the effort. Corval helps teams quickly develop a comprehensive plan, inclusive of strategic objectives, activities, timing, and resources required. This faster, smarter approach to commercialization helps inform a compelling value investment story that drives investor confidence and, if appropriate, may also support successful potential partnership or business development discussions.

Uncertainty Is the One Certainty: Scenario Plan

Market volatility may force leadership teams to question their asset strategy and prompt short-term, reactive thinking that can be dangerous for long-term company health. Incorporating proactive scenario planning into ongoing commercialization efforts can help avoid this risk. From the start, teams need to make tradeoff decisions about how and when to spend their commercialization resources and “manage the burn.” The advice across multiple disciplines in biopharma is to build the plan, but stage-gate the implementation.

Corval can quickly generate these trade-off scenarios and illustrate the impact that key strategic, budget, and hiring decisions have on timing and investments. In a matter of just hours, Corval can provide the recommendations needed to navigate uncertainty and understand what steps must be taken to maximize an asset’s value.

Optimize Your Resource Mix 

Amidst shifting economic and financial sands, emerging biotech companies may face a conundrum: improve speed and efficiency while conserving resources. Focus is likely to be trained on headcount - a major commitment and expense at a time when every dollar is subject to scrutiny.

Many companies turn to consultants to fill talent gaps when hiring opportunities are limited. While consultants can offer speed, expertise, and flexibility, the cost and ramp-up effort can strain the internal resources. Additionally, the institutional knowledge gained by consultants does not remain with the team over the long term.

Imagine having the ability to look beyond traditional headcount and consultant solutions and toward a technology solution to build the preliminary commercialization plan. For a fraction of the time and costs associated with human capital, Corval does the heavy lifting. Backed by deep industry experience, our cloud-based platform learns your unique circumstances and leverages its proprietary algorithm to generate a detailed and customized plan. All in a matter of days.

Foster Stability with a Single Source of Truth

Over the extended course of clinical development, an asset can change hands at the team level (due to turnover) and/or at the company level (due to acquisition or licensing activity). As environmental uncertainty rises, so do the odds of this kind of team instability. The result is lost institutional knowledge, lack of strategic alignment, and a fragmented approach to commercialization that hampers speed, agility, and value.

Corval offers a central workspace that serves as a single source of truth and stability. The platform houses crucial data, decisions, and assumptions to ensure that the knowledge base and plan remain a  part of corporate and product planning, regardless of team turnover.

2022 has ushered in a new era of economic uncertainty for the biotech industry. Inflation, jittery markets, and the ongoing impact of a global pandemic have converged to challenge biotech companies that are rich in innovation, but lean in resources. Innovative technology platforms like Corval are uniquely situated to help companies make faster, smarter, and more agile decisions, equipping them to tackle the challenges ahead with confidence.

Interested in making smarter, more agile decisions during these challenging times? Schedule a conversation with our commercialization expert to understand your options.

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