Background and Context
A multinational conglomerate with global revenue north of USD 20 billion engaged Sathguru to assess and prioritize portfolio offerings to the Indian lifesciences industry and investment avenues with strategic merit for near to mid-term growth. Subsequent to a global re-organization activity, the Client had embarked on a critical planning activity to shape portfolio composition for enhanced competitiveness and steer growth strategically. Sathguru was chosen due to established level of industry depth and cross-functional experience across areas of client’s offerings to the industry.
Sathguru performed a comprehensive market opportunity assessment across the following application areas covering the breadth of biotech and pharma manufacturing (small molecule pharma, peptides, vaccines, biosimilars, novel biologics et al) in India:
- Biopharmaceutical R&D and manufacturing inputs
- Pharmaceutical packaging
- Cold chain solutions, logistics and tertiary packaging
- Personal protective equipment
Using a strategic funneling approach, we assessed overall level of evolving opportunity and derived demand in each of these application areas. Merit for expanded participation was assessed after considering competitive landscape, adjacencies and white space for growth, potential for innovation led sustained advantage andacquisition opportunities and possibility of accelerated growth. Portfolio recommendations were made for the near term as well as more strategically engineered mid-term participation in the Indian growth opportunity.
Given substantial breadth of opportunity analyzed and high level of uncertainty around certain areas of industry investment, extensive primary research was used to gain needed strategic inputs and more than 100 key informant interviews were conducted during the study.
A mix of qualitative and quantitative assessment methods were used to identify opportunities in all the four segments. Qualitative insights on current practices, market composition, competitor analysis, unmet needs and white space analysis was done through detailed secondary research and primary research with suppliers, end-users, industry experts and other significant stakeholders in all the segments. In addition to the above, regulatory landscape was also mapped to derive the business implications of upcoming regulations in different geographies and identify emerging business opportunities. Evolving technology landscape and global research pipeline were also analyzed to infer implications for near to mid-term portfolio decisions and evolving competitive landscape.
Quantitative analysis included high-level market sizing, estimating target and addressable market size, predicting demand volume and value over the next 5 years. As most application areas assessed derived demand from final products such as biosimilars, vaccines, peptides or small molecules, anticipated scenarios were developed for the final products and level of derived demand were inferred for prioritized products. Strategic considerations that will impact investment decisions of the biopharma industry were analyzed and opportunity and risk levers were accordingly factored in.
Final prioritization matrix was developed as a strategic input for portfolio prioritization and investment decision making. Opportunity areas were classified based on anticipated market size, strategic merit and potential for near-term, mid-term or long-term opportunities participation for growth. In prioritized application segments, more specific way forward recommendations were also made including acquisition and strategic partnership opportunities.
The study output has served as an input for global decision making and next steps (portfolio strengthening, development and implementation of commercial strategy) is currently being undertaken in certain areas recommended as high potential for near term growth.