Ideating an innovative deal structure
Snapshot
At a glance
pharmaceutical company approached Newmarket with a view to develop an innovative commercial arrangement that would give it an edge over its competition. The company was particularly keen to understand the different types of commercial archetypes available, and whether to pursue an asset-specific deal or a pipeline deal across its broader portfolio .
Client
A large pharmaceutical company, well established internationally
Challenge
Exploring an innovative deal in a fast-moving landscape with strong competitors in the market; which broadens access for patients, is commercially feasible / transactable, and in the interest in NHSE
Support
Newmarket provided advisory support including: Masterclass into innovative deals Innovative deal development (two options provided) In-depth discussion of how to implement the deal in real-life
Outcome
We created two different commercial propositions for the company, including clarity on what would need to be true for either to be secured. We also developed a small economic model to understand how pricing (and revenue) for the asset could evolve in different commercial scenarios
The challenge
Company launching in a crowded area and in need of a bold commercial strategy which is feasible and abides by competition law
Our approach
Newmarket first explained how innovative commercial arrangements work (what are they, the criteria to secure one, the trade offs, and the process); and then did an in-depth analysis of the pipeline to understand which constructs would be most appropriate to meet the client’s objectives. We identified two particular approaches that would work well, and fleshed these out using a model. These were then further stress tested in a cross-functional workshop with the company’s leadership, HEOR and pricing functions.
The outcome
