How to select international markets for biotech companies for the export of orphan drugs ? An approach for Univercells and application to Gaucher disease market in France and Canada

Details

Supervisors

Gailly, Benoît

Faculty

Louvain School of Management

Degree label

Master [120] en ingénieur de gestion

Abstract

Biotech ventures, like most SMEs, tend to have an unsystematic approach to internationalization in their first years, as observed in the case of Univercells (a Belgian biotech company and partner of this thesis-project) for its orphan drug market development. However, as they grow, the need for establishing a more structured approach appears in order for those companies to make an informed prioritization of market opportunities and to avoid predictable failed entries. No model tailored to support the management team in the selection of countries for the specific activity of orphan drugs export was found in the literature. Therefore, the first contribution of this thesis-project is the elaboration of an International Market Selection for Orphan Drugs (IMSOD) approach as an attempt to fill the gap. We applied a funneled methodology to explore successively literature’s themes from the general to the specific; namely Strategy, International Market Selection, Biotech & Born Global, Pharmaceutical & Orphan Drug markets. Then, the IMSOD approach was further refined and validated through inputs from Univercells and knowledgeable industry experts. The IMSOD approach defines six dimensions tailored to emphasize the critical factors for orphan drug markets; namely, Generic country factors, Industry, Competition, Reimbursement mechanism, Demand, Company. Each is further defined by sub-dimensions and sub-questions. After analysis, for each dimension, a relative score is given per target and displayed in a radar graph for visual comparison. In order to illustrate its use and benefits, the IMSOD approach was applied to the Gaucher disease market in France and in Canada from Univercells' perspective following the management team’s interest in those countries. Beyond the conclusion that France should be prioritized over Canada, it appears that the IMSOD approach provides biotech SMEs with a clear and structured checklist of factors to look into for orphan drug market assessment. However, its use should remain part of a decision process as it does not provide the country prioritization per se. Finally, it would benefit from further refining by applying it to real-life situations.