Sathguru helped a major international developmental agency to landscape POC diagnostics and research innovation in India.
Case Study
AllAgribusinessAnimal HealthBiotechnologyBusiness AdvisoryCorporate Finance and Investment BankingDevices and DiagnosticsDigitalFood and RetailHealthcareInnovation AdvisoryInternational DevelopmentPharmaceuticalsPolicy & Regulations
Background and Scope
A market leading company in veterinary biologicals wanted to strategically expand portfolio and develop prioritized products with high potential for mid-term growth. The company engaged Sathguru to landscape technology possibilities, assess relative merit, scout for potential technology partners and in-license the technologies for six identified veterinary vaccines from global public institutions or private companies.
Our Approach
Mapping global technology and IP landscape:
To map the evolving technology landscape and potential sources of technology, Sathguru conducted a detailed review of published research articles and all Intellectual Property including granted and provisional patents around the prioritized vaccines. We comprehensively mapped evolving technologies as well as details of institutions/researchers engaged in developing these.
Assessing relative merit and consultatively determining technology strategy (where needed):
Based on technology trends identified, along with the Client’s R&D head, we assessed relative merit for their R&D investments and technology strategy. For certain vaccines, due to regulatory merit we converged on prioritizing access to legacy technology already used by globally approved products including use of same strain. For vaccines with multiple technology possibilities including options such as recombinant and immune complex /vector based vaccines, a subjective and multi-factoral approach was taken to prioritize nature of technology to be accessed. Regulatory implications and timeframe for approval, considerations around scale-up and manufacturing, commercial receptiveness and technology access possibilities were all considered for such final prioritization of technology type and technology sources to be explored.
Managing outreach to potential technology providers and entire technology licensing transaction:
Sathguru reached out to all the global research institutions through their respectiveTechnology Transfer Office and private companies identified to explore in-licensing of strains and technologies prioritized. Our extensive network with global TTOs and research institutions and historical engagement with most of them was vital in accelerating these discussions. Over a course of about 12 months, we managed all steps of the transaction to successfully conclude the intended licensing transactions. This included multiple steps of negotiation of the term sheet and licensing agreements with multiple global sources of technology each having its own preference on licensing terms and transaction modalities. Where needed, technology was pooled from multiple sources for a single vaccine.
Additional handholding partnerships or knowhow access to enhance probability of success and accelerate R&D efforts:
In addition to in-licensing vaccine strains and technology needed, we also identified partnerships that can enhance probability of technology development and accelerate the overall product development process. This includes a key handholding agreement with a prolific and celebrated researcher worldwide who has been a constant support for the company ever since.
Project Output
Sathguru in-licensed vaccine strains and related technologies for six different vaccines from various global sources (USA, Canada and Europe), shaped hand holding partnerships with recognized global researchers in the space and comprehensively supported realization of portfolio aspirations of the Client. Sathguru’s support has enabled the client to develop a robust pipeline of veterinary vaccines with technology that is globally contemporary and timeline that is aggressive and accelerated.
Project Scope
The client evinced interest in exploring agribusiness opportunities in fallow land available with the groupthat led to conceptualization of the project. Sathguru helped the client in assessment of the business goals of the client, identification of a thematic area and developed detailed business plan to for venturing into agribusiness.
Project Approach
Sathguru adopted a two-phase engagement model, wherein the initial phase involved in detailedassessment of thematic areas through expectations alignment, options analysis and opportunity selection and the second phase involved formulation of comprehensive strategic business plan.
Phase 1:
- Sathguru conducted a one day Management Workshop for expectations alignment with the Group Promotors, key decision makers. The workshop helped in understanding the Goals, Strategies, Operations and Key Performance Indicators for consideration.
- Based on the outcomes of the workshop, Sathguru converged their sectoral expertise with the objectives and expectations set forth for identification of 2 – 3 thematic areas based on following parameters
- Industry attractiveness and outlook, level of competitive intensity, returns, etc
- Ease of entry, process complexity, technological affinity/ capability, scalability & sustainability
- Risks – strategic risk, financial risk, operational risk, technological risk, regulatory risk, time-to-market
- Existing and potential linkages with the group to draw capabilities, transferring of skills and sharing of activities/ assets
Phase 2:
Sathguru with its techno commercial expertise and holistic understanding of the agri-business developed a detailed business plan for finalized thematic area with financial projections. Detailed business plan included:
- Opportunity Assessment & Landscape analysis: Overall market growth trends, key segments, policies, Potential Crops/Products, Value Chain Assessment, Competitor Analysis, Customer trends
- Technology Assessment: Technology trends, Technology access, Regulatory pathway, Commercialization options
- Business Strategy: Articulation of vision & mission Business goals & objectives, Business model, Technology strategy, Product/ Market Strategy Distribution & Channel Strategy HR strategy & Organogram
- Financial Model and projections: Feasibility Analysis, CAPEX and Funding Requirements, Risk Analysis
Recommendations
- A high tech vertical farming/ protected cultivation as a promising thematic area for the group based on the industry attractiveness, high growth potential in the country, client’s expectations, existing linkages and strategic alignment with group activities,
- Cultivation of high value exotics vegetables to fetch higher profits and target both B2B and B2C segment. In B2C segment, Sathguru recommended to target the premium retail stores and online market,
- Access to innovative technology providers globally to address market requirements and sustainable growth, and
- Developed a unique business model that integrated the farm services aspect into product sales to effectively capture the market share
Impact/ Client benefit
The output of this engagement immensely benefited our client to understand the dynamics ofagri-business industry in general and high tech vertical farming/protected cultivation in particular. The plan presented by Sathguru was acceptedby the management team.
Food safety has been gaining a central role in the food businesses irrespective of their nature and scale; whether be it in food processing, food service or retail. The lapse in food safety can be to detrimental to the companies to the extent of causing complete loss of business besides threatening consumer health and safety, penal actions, recovery or punitive costs, loss of long standing business, and personal reputation. Most businesses have identified this and started paying increased attention to the Food safety aspects in their overall business strategy as well as in operations. The key challenge faced by most businesses, especially in developing countries like India, is Implementing and sustaining a food safety system.