Strategy – Pharma Contingency Planning

Pharmaceutical companies frequently struggle to meet deadlines and expectations when launching new products, leading to missed revenue opportunities. A recent analysis found that 75% of new molecular entities experienced delays of less than 19 months and fell short by around $200 million per asset. The primary reason for this underperformance is the companies' inability to adapt to internal and external changes promptly. The complexity of managing multiple launch programs leaves leaders with little room for contingency planning. In addition, the current contingency planning models are inadequate, and companies often lack alternative development plans. To overcome these challenges, companies must allocate time and resources to create alternative routes for development and well-structured contingency plans. This entails early planning that focuses on commercial and market considerations, anticipation of potential challenges, and integration of contingency plans into key governance, financial, and resource-planning processes. Ignoring these steps puts companies at risk of significant delays and missed revenue opportunities, especially for assets with high potential. Efficient preparation and streamlined development timelines are vital for success in the pharmaceutical industry.