Back to Practice case - OldPharma
Case Question 3
QUESTION 3: Next, the team explores the potential setup with BioFuture after the
acquisition. Although BioFuture's existing drug pipeline is relatively limited,
OldPharma is highly interested in its ability to serve as a biological
research “engine” that, when combined with OldPharma's existing
R&D assets, will produce many candidate drugs over the next 10 years. What are
your hypotheses on the major risks of integrating the R&D functions of BioFuture
and OldPharma?
Helpful Hints
- Ask for clarification of information if necessary
- Take notes of the numbers
- Take time to plan out how to approach the calculation
- Describe your approach and talk the interviewer through your calculation
Reveal answer
A very good answer would include the following.
- Scientists do not have overlapping disease (therapeutic area) interests or expertise
and are unable to materially collaborate
- Integration into the process-driven OldPharma culture kills the entrepreneurial
culture at BioFuture that has been key to its success
- Language barriers severely hinder communication and sharing of information
- Poor management and sense of community as a result of R&D operations that might
come with a time difference of 9 hours
- Key scientific talent leaving BioFuture after the acquisition – either
because acquisition makes them independently wealthy or because they don't want
to be a part of the new big OldPharma pharmaco.