Pharmaceutical Portfolio Development: Strategic Rationale, Challenges & Solutions

Abstract

Seeking revenue growth has always been one of the key strategic priorities of business entities in the biopharmaceutical industry. The path to such growth can take diverse forms shaped by factors such as business context, strategic and operational capabilities, asset profiles, resources, and competition. Developing assets (whether organic or acquired) with a strategy that seeks to build, maintain, optimize and grow a portfolio of assets offers a reliable path to reducing risks presented by organic development or through mechanisms such as partnering, mergers & acquisitions. The benefits of achieving profitable growth with a portfolio strategy span the asset life cycle continuum, from influencing asset development programs, shaping investment decisions, determining commercialization choices, informing launch planning, and driving corporate priorities. This article outlines the rationale for crafting and adopting a portfolio strategy since it improves the design of corporate, development, commercialization and lifecycle management strategies. Through cases based on the author’s engagements, this article highlights common challenges and creative solutions that lead to the development and execution of viable portfolio strategies implemented by firms of diverse sizes and corporate objectives.