As I write this year end note from Riyadh where I am speaking at the first CPhI MENA conference, I find myself reflecting on the incredible journey our consulting practice has navigated these couple of years but also the magnitude of changes the healthcare industry is going through.  For us at SMC, this year has been a blend of supporting industry growth, charting transformative paths, and fostering significant impact on corporate goals and global health.

Corporate Opportunities Across Biopharma and Health

The opportunities within biopharma and health are vast and pervasive. As cell and gene therapies advance, the potential for transformative innovation is immense, coupled with the promise of democratizing these innovations. The next five years could see LMICs (Low and Middle-Income Countries) bringing advanced transformative care to global markets. Novel biologics, including monoclonal antibodies (mAbs), antibody-drug conjugates, and peptides, continue to be actively pursued. The biosimilars market is set to become even more dynamic, with companies embracing delivery innovations and favorable regulatory environments. Small molecules and generics remain crucial, with new geographies and complex products presenting abundant opportunities that require strategic navigation. Our engagement spans this breadth of opportunity, steering corporate growth in an industry essential for quality human life. Convergent areas such as nutraceuticals, bioprocess inputs, excipients, packaging, and industrial biotechnology are evolving and promising in equal measure.

Navigating Corporate Growth in an Uncertain Landscape

The industry is still deciphering the implications of the BioSecure Act, potential opportunities in the US for CDMO (Contract Development and Manufacturing Organization) services, and the quest for regional value chains. Investments needed to actualize growth potential over the next five to ten years are significant. We remain engaged with the industry to unravel the implications of global developments while collaborating with policymakers worldwide to chart the course. These complex times present exciting opportunities for strategic direction, incisive M&A, and partnerships that can accelerate success.

Geopolitical Shifts and Opportunities

The expanding opportunity in CDMO is undeniable, yet readiness to capitalize on this opportunity is often lacking. We have been involved in directed buy-side mandates to bridge capacity gaps geographically and within specific areas of contract research services and biologics. As we look ahead, we are reminded of the time sensitivity of needed capacity build-out and expect to engage more extensively in growth enablement with pharma and CDMOs across regions.

Regional Value Chains and Global Health

Reflecting on the pace of developments since COVID-19, we are humbled by the power of resolute intent and reminded of the fluidity of the current world order. Regional pharma value chains are now a focus in both high-income geographies like the Middle East (with Saudi Arabia as a prime example) and low and middle-income countries (such as Sub-Saharan Africa). COVID-19 starkly reminded us of health system fragility in a highly globalized world where supply chain disruptions can cripple health systems. As we engage with governments, development partners, global health actors, and Development Financial Institutions, we constantly remember that the true heroes of these stories are the companies. The timing is opportune for joint ventures and partnerships, plotting organic growth paths reflective of current global dynamics, and shaping growth in new directions.

Market Access and Sustainable Partnerships

It is intriguing how the interests of industry and global health actors converge within the realm of sustainable market access and scale. In addition to working with the industry on market access, price sensitivity, and volume potential across market segments, we now find ourselves collaborating with strategic global health actors on the same questions. While the industry is driven by revenue maximization, global health actors are driven by access maximization.  However, importance of pragmatic yet strategic consideration of these key building blocks of market access strategies are critical for both.

Bio-Transformation, Sustainability, and Strategic Partnerships

As we shape our ESG advisory practice, we are excited about the rich portfolio of transformative work we are pursuing across sector practices. We are humbled by the breadth of work and the opportunity to steer upstream transformation. Our interventions have included enabling an acquisition in enzyme production for a small molecule company keen on bio-transformation in API, steering initial strategy and partnerships for bio-transformation in key input segments such as flavors and fragrances, and steering the roadmap for regionalizing manufacturing value chains for a more optimal carbon footprint. This is just the beginning. Given our industry depth and value chain engagement, the impact we can have in this space is truly expansive.

Looking Ahead

Finally, we continue to support strategic and financial investors with highly qualified buy-side and sell-side support. We are highly sought after for our sector depth, pragmatic perspective, and values of confidentiality. We look forward to expanding our scope of impact as we enter our 40th year.   Thank you for being part of our journey. Here’s to another year of growth, transformation, and impact.

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