3 Strategic Business Development Lessons from Gilead’s Success
Gilead Sciences, a research-based biopharmaceutical company, has experienced remarkable success in the pharmaceutical industry in recent years. Gilead’s innovative and strategic business development has been the envy of many, with the company being recognized for its ability to quickly adapt to market conditions and take advantage of emerging opportunities. In this blog post, we’ll dive into these three strategic business development lessons from Gilead’s success that we can all learn from.
Lesson 1: Don’t Be Afraid to Take Risks
Gilead’s success is, in part, due to its willingness to take calculated risks. The company has shown a willingness to invest in groundbreaking ideas, even those that may not have a guaranteed payoff. For example, in 2011, they purchased a small, Netherlands-based firm named Pharmasset for $11 billion. This was remarkable at the time, as Pharmasset was largely unknown to the industry outside of a specific hepatitis C (HCV) drug they were developing. However, Gilead recognized the value that Pharmasset’s HCV treatment would bring to the market and made a bold move to acquire the company.
That risk paid off immense dividends. Under Gilead’s ownership, the HCV drug, Sovaldi, became a blockbuster drug generating billions in revenue each year. By taking a calculated risk, Gilead was able to enter a lucrative market and change the landscape of HCV treatment.
Lesson 2: Foster Relationships
Success in the pharmaceutical industry is often driven by partnerships and collaborations. Gilead has a strong history of forming strategic partnerships, collaborations, and coalitions – exemplified by their relationship with Galapagos NV, a Belgian biotech firm that specializes in fibrosis and inflammatory diseases. The two companies formed a partnership in 2019 that gave Gilead the option to acquire Galapagos. This partnership has resulted in the development of transformative drugs to combat inflammatory diseases and expand Gilead’s portfolio.
Additionally, Gilead has worked closely with the US Food and Drug Administration (FDA) to obtain regulatory approvals for their drugs. By fostering relationships with key stakeholders within the industry, Gilead has been able to navigate regulations, streamline approvals, and bring innovative treatments to the market.
Lesson 3: Innovation is Key
Innovative solutions are the backbone of any successful business. Gilead invests heavily in research and development, leading to a range of revolutionary treatments. The company’s portfolio includes treatments for HIV, HCV, cancer, and more. One of Gilead’s most innovative solutions is Yescarta, a CAR-T therapy approved by the FDA in 2017 for the treatment of a rare form of non-Hodgkin lymphoma.
Gilead has also invested in innovative manufacturing techniques. In 2020, Gilead invested in a startup, BlueRock Therapeutics, that is focused on developing innovative cell therapies.
Conclusion:
Gilead Sciences’ success is a testament to the importance of taking calculated risks, fostering relationships, and investing in innovation. These three strategic business development lessons have allowed Gilead to adapt to market conditions, take advantage of emerging opportunities, and become a leader in the pharmaceutical industry. By learning from their success, we can all invest in these key areas to drive growth and success in our own businesses.
