A Strategic Guide for Life Science Companies

In the ever-evolving landscape of the life sciences industry, companies are constantly seeking new avenues for growth and expansion. This video presents a compelling opportunity for life science organizations to look beyond the traditional powerhouses of Boston, New York, and Los Angeles and explore the untapped potential within the diverse US market. Featuring insights from industry veterans like Tony Jones of One Nucleus –  the Life Sciences & Healthcare membership organisation headquartered in Cambridge –  and Chris Howie of GTM Global, the video serves as a strategic guide, offering a wealth of knowledge and practical advice for companies aiming to successfully navigate the complexities of global expansion and the intricacies of the US life sciences sector.

Key Take-aways

• Look Beyond Boston: While Boston is a major hub, considering other locations might better suit your company’s specific needs. See also this hugely informative article about the transformation of the American heartlands into a dynamic hub of innovation for Life Science businesses.
• Informed Decision-Making: Use resources like One Nucleus and Go To Market Global to make well-informed strategic decisions about where to grow your business.
• Local Support, Global Reach: One Nucleus offers practical local support such as finding lab space and raising investment, while also helping companies to succeed on a global scale.
• Significant Investment Opportunities: The US life sciences sector continues to be a top destination for investment, indicating a promising market for growth.
• Understand the US Market: Recognize that the business models, deal-making, and transaction processes in the US may differ from those in the UK.
• Surround Yourself with Experts: Engage with knowledgeable advisors and collaborators to navigate the US life sciences ecosystem effectively.
• Patience and Preparation: Be prepared for the challenges of market entry and be patient as you align your business strategy with US market expectations.

Transcript

Boston or Beyond?

So, as One Nucleus, we work with companies of all sizes, and it always has been, it always will be a key market for those companies developing products in healthcare, pharmaceuticals, biotech. The US is everything. Faces west from the UK in those early stages of “How do I grow?” It’s complicated. The development of products is complicated, to enter new markets. From a One Nucleus perspective, we hear our members almost defaulting to saying, “Well, we must go to Boston.” It feels like the most tractable, but actually, a job of One Nucleus, as a not-for-profit membership group of those companies, is to nurture an environment for informed deal flow. And you can only do that when people are looking as broadly as possible, not just “Can I do this here?” or “Can I do it in Boston?” or “Can I do it in San Francisco?” It’s “Where can I do this, and where’s the best place for my company?” And the whole partnership we have now with Go To Market is a key element of us being able to bring really good advice and signposting and context to that membership base to make those informed decisions. So that if they are going to be successful, let’s make it successful through the most rational routes, not leave it to chance.

Global Support with GTM Global

So that’s the bit that’s really important to us. As One Nucleus, we can support our members locally on practical measures, whether that’s finding lab space, raising investment, and deal flow. But actually, we have to help support them be successful globally in this industry. So being able to work with a pool of experts and a network like this just means we can bring that much better support and increase the chances of those companies succeeding, which ultimately is why we’re all in this industry of life sciences, is to say, “Can we get better products to the patients, and is that going to improve quality of life?” So, it meets all the mission drivers for One Nucleus to help our members; it meets the industry’s mission to be global and meet the unmet medical need. And this is a great
opportunity for us to engage. So, thanks very much for approaching us.

Huge Investment Opportunities

(Chris Howie) I’d like to echo what Tony said. I delightfully head up the Go To Market life science division. So I had the pleasure, as Mark said, of working for the UK government within the Department of International Trade for five years. So, the joy of developing life science trade potential within the US healthcare ecosystem. So whether that be large pharma as well as midsize medtech firms that Tony’s talking about as well. So, really excited about today’s session. As we know, the US is still the top destination in the world life sciences ecosystem, with many favouring the US market primarily over their own. So I know that life science industry, especially in the US, reached investment of over 500 billion in 2021. So it’s a huge sector.

US Patents Abound

As Tony mentioned, the US develops 40% of the global medical device patents in the world. So, life science contributes enormously, not just to the US economy, to the worldwide economy as well. In the US, it employs over 1.2 million, so it’s hugely significant. So in terms of investment, I think, as Tony mentioned, really from a VC perspective, the US life science sector continues to dominate within the global investment landscape. So something we’ll no doubt discuss a bit more today. And a question really back to Tony, just to bounce one back, Tony, if that’s all right. If there were three things you would recommend that a company organizes so that they can land effectively in the US ecosystem, what things might there be from your side?

US Market Entry Success

(Tony Jones) I think the three key things, actually, they sort of all interrelate. It’s knowing where you’re landing. I think it’s being mindful of the fact of whether your business model aligns with what your customers or investors are looking for in their market rather than a business model designed for our market. It’s understanding the deal-making process and the transaction process, which is different. So get to grips with that. And I think the other thing is just to surround yourself with very good people, whether that’s inside your company or as collaborators or as advisers. And I think often the missing bit of the puzzle, I guess, is whether there’s the right context to get things done. Because we all know that doing good business is a people factor-driven exercise. So I just think it’s getting it’s people, it’s preparation, and it’s patience.

High Growth Sectors

(Mark Stimpfig) Obviously, life sciences is a very strong focus within Go To Market, and we’re looking to build that through Chris. But we are also looking at other what we see as high-growth channels that we’ll be covering in 2024. Apart from Life Sciences, we would be very much looking at Net Zero sustainability, Aerospace, and the wider tech focus.