Molecular diagnostics portfolio assessment and choice structuring

A development-stage diagnostics company had developed a new technology to assess disease activity with a simple test. The technology had great potential, but pursuing it would be disruptive for the company.

Background

• Company was founded to commercialize an innovative, but highly complex technology platform

• A newly developed, simpler technology opened up possibilities for the company and had the potential to dramatically accelerate the development timeline

• Client’s board, scientific founder, and executive team had reached an impasse. They could not agree whether to continue with the original approach or switch to the newer technology

Client request

• Re-assess Client’s portfolio prioritization in light of the new technology

• Work with the board to structure the strategic choices for the company and make decisions

Key issues for consulting team to address

• Development path, pricing and reimbursement comparison of original and new technology

  • Approval timeline and development cost

  • Manufacturing standards

  • Cost of goods

  • Risks

  • Provider, payer, and patient perspectives

• Market size

  • Therapeutic pipeline for key indications

  • Underlying unmet diagnostic and therapeutic monitoring needs

• Company dynamics

  • Tensions between key stakeholders

  • Differing levels of scientific and clinical acumen on board

Health Business Group approach

• Health Business Group worked closely with the management team, founder and board to prepare for and facilitate a strategy offsite

• Conducted portfolio assessment

  • Leveraged HBG knowledgebase and market research reports

  • Performed competitive analysis

  • Interview KOLs to validate findings from secondary research and help settle controversial questions

• Conducted one-on-one interviews with board and management

  • Gathered perspective on strategic options from each interviewee

  • Reviewed choice structuring approach

• Synthesized findings

  • Laid out portfolio analysis and implications

  • Developed baseline fact base

  • Prepared board materials

• Facilitated board retreat

  • Presented baseline facts and interview feedback

  • Teed up strategic options and criteria to evaluate

  • Built consensus on best path forward

• Followed up

  • Prepared memo to recap results

  • Worked with management on implementation and communication plan

Outcomes

• Framed the key issues and brought relevant data to the table

• Facilitated board, management and founder agreement to enable company to make a clear decision and execute a unified approach