Distribution optimisation for a global biotech firm
Assessed optimal pharma distribution models across key markets for a global biotech firm, enabling new partnerships and renegotiations.
For our client, a rare disease biotech nearing end-of-contract with its local distribution partners in several Middle Eastern and African markets, we evaluated the best distribution models per market, and determined the range of market rates for different types of distribution services. This supported the client to optimise its models in each market, including renegotiating compensation terms, and replacing partners.
Context
Our client, a global rare diseases biotech, was coming to the end of its contracts with distribution partners across seven markets in the Middle East and Africa.
Seizing this opportunity to optimise their distribution, the client requested a thoroughgoing assessment, following a double-blind model: without knowledge of the client’s own models and contracts, we would examine each market’s different distribution models (agents, distributors, in-house salesforces), determine the range of compensation being paid for different service types, and support the client to develop and secure the most attractive options by location.
Approach
Mapping these markets required some creative approaches; working with a specialized research firm we harnessed information from several years of official tender documentation in the respective local languages. Our team, with deep line experience in pharma distribution, leveraged their networks and secured over 50 revealing interviews with local distributors and former employees of the pharma majors.
Based on these insights, we were able to map local distribution markets and models in detail, and formulate standard ranges of compensation for different types of service package, along multiple variables.
Impact
Our recommendations on the relative attractiveness of the agent, distributor and in-house models in each market enabled the client to select and develop the right approach locally.
Clarity on standard compensation led to the identification of significant opportunities, and underpinned their negotiation of more favourable terms with a series of partners, as well as the replacement of others.