Unlocking Value over the Acquisition Lifecycle - Specialty Pharmaceuticals Industry
Challenge
The market leader in a high-growth specialty pharmaceutical segment was searching for growth opportunities to complement its anchor product. Although its product had achieved "blockbuster" status, the company was actively looking for opportunities to capitalize on its strong market position and build a larger presence within physician specialties. The company engaged Kaiser to identify and prioritize adjacent market opportunities and potential acquisition candidates.
Kaiser's Approach
After objectively assessing the client's capabilities and relative strengths, Kaiser conducted a detailed analysis of adjacent markets and identified and screened opportunities based on their ability to:
- Strengthen the portfolio by acquiring a complementary product or a company with a complementary product portfolio
- Leverage the expanded portfolio to drive deeper customer relationships and increased customer loyalty
- Increase sales volume through coordinated "whole portfolio" marketing to the growing target customer segment
Kaiser further prioritized opportunities based on strategic fit, financial attractiveness, and our client's ability to execute on the opportunity. After Kaiser recommended a specific adjacency to target, the client pursued and won a multi-billion dollar competitive bid for a company in the adjacent space.
After the acquisition was announced, the client again contacted Kaiser to provide post-transaction guidance on how to rapidly maximize the value of the acquisition with minimal disruption. Kaiser worked closely with the client and the recently acquired company to develop a 100-Day Plan that addressed and provided guidance regarding:
- Overcoming challenges posed by insufficient management systems at the acquired company
- Integrating an incompatible organizational structure without compromising retention of key employees
- Identifying complementary capabilities and leveraging operational synergies to maximize efficiency
- Establishing a detailed work plan with clear priorities and milestones to achieve merger integration objectives
- Creating the groundwork for ongoing portfolio management and enhanced strategic positioning
After a successful integration, Kaiser provided assistance in a number of strategic planning initiatives including:
- Long term strategy of the combined business unit
- Launch planning of a new complementary product
- Strategy for a cross-portfolio marketing group designed to drive anticipated revenue synergies
Results
Kaiser's work, which spanned the entire investment life cycle, has allowed the client to achieve a leading market position in each of the identified adjacent markets within 2 years of acquisition. Since the acquisition, the client has outperformed its peer group by 3X (in terms of cumulative return), while experiencing measurable improvements in physician loyalty and customer retention.
