Growth & Value Creation.
Global leader in API manufacturing was facing a steady increase of emerging countries competition. In order to counter this competition and recover an adequate growth, our client needed to identify new growth and value creation leverages.
- European company
- More than 1500 employees
- Over 500mn EUR revenue
- Over 150 generic APIs in catalogue
- Eight manufacturing sites
- Global sales force
Larka's Scope Of Intervention
Larka's project management team covered the following tasks:
- Market assessment
- Overall generic API market
- Patent loss market assessment
- Identification of key growing segments
- M&A activity
- API portfolio assessment
- Key APIs positioning – chemical class, therapeutic area, related drug product and geographies
- Key APIs and related drug product sales and unit volumes
- Forecast and rationales
- Customer profiles
- Sites assessment - COGS, Capex, Opex, sales and technology, capabilities & synergies
- Sales & Marketing
- Company key assets identification and rationales
- Growth and value creation levers
- Portfolio optimisation – remove highly competed, low margin and volume APIs/develop complex, high added-value and market potential APIs close to patent expiry, matching with current expertise, capabilities and portfolio business units
- Enter contract development and manufacturing market – enhance technological platform, capture sites synergies, take advantage of substantial existing customer portfolio and optimize existing sales force use
- Business development – new customer targets, new geographies
- Innovation – new capabilities, either to enlarge CDMO services or develop new APIs chemical classes (Capex)
- M&A – acquire target having synergies with existing assets, for CDMO or APIs catalogue development
- Strategic planning
- Key objectives definition
- New organisation structure
- Implementation or integration issues analysis and solutions
- Risk assessment
- Strategies implementation planning and KPI
Our client applied our recommendations and required Larka support to implement the selected strategies.
We started to optimise the API portfolio and to develop new APIs. The development of new APIs required some Capex and resource reallocation in order to strenghten the R&D capabilities. Meanwhile, our client also decided to enter the CDMO market and set-up an organization dedicated to the development of this activity. This new organization is mainly consisting of existing employees motivated by the challenge. However the key decision makers of this new organisation came from outside, with strong and proven experience in leading API CDMOs.
Tehcnological assessment allowed to optimize manufacturing process and capacities, so the sites can absorb CDMO business.
This long term project is still on-going and the strategy implementation process is going smoothly. We are also evaluating acquisition with the M&A team of our client.