Atlanta | Chicago | San Francisco | Scottsdale | Stamford An Alexander Group eBook

Life Science Sales Leader –

Your world is changing, are

you ready?

2015 Life Science Sales Trends Report

© 2016 The Alexander Group, Inc.® 2

Life Sciences Clients & Benchmarking Participants

Healthcare

We partner with leading life sciences companies to grow revenue

© 2016 The Alexander Group, Inc.® 3

The Case for Change

Internal Factors External Factors

1. Increased M&A drives greater

organizational complexity

2. Higher demand for true sales ROI

3. Stronger focus on maximizing share of

wallet

4. Greater requirements to be “easy to do

business with”

5. Decreased research market funding

6. Growing opportunities in emerging

markets

Coverage Model Innovations

Segment Aligned Revenue Motions

A New View on Sales Talent

Go-To-Customer

Model Change

The new normal requires a go-to-customer model ready to compete in a complex,

growth-constrained environment.

© 2016 The Alexander Group, Inc.® 4

1. The Life Science and Analytical Instrument

Landscape is Consolidating

Some highlights of M&A activity from 2013-2015 are outlined below.

Sources: Company annual reports ; “Biotech Industry Shatters Fundraising Records in 2014”, January 5, 2015, The Burrill Report

© 2016 The Alexander Group, Inc.® 5

2. Higher Demand for True Sales ROI

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

0% 20% 40% 60% 80% 100% 120%

3 Y

ea

r R

eve

nu

e C

ha

ng

e

3 Year SG&A Change

Teledyne (Instrumentation)

Qiagen

PerkinElmer

Bio-rad

Roche Diagnostics

Illumina

ThermoFisher

Sigma-Aldrich

Danaher

Pall

Mettler - Toledo

Waters

Aglient

Sources: Company annual reports as of April 2015

Revenue Growth

Outpacing SG&A Spend

Deal models rely on go-to-market efficiency and cross-selling synergies to deliver expected margin gains.

Bio-Rad

© 2016 The Alexander Group, Inc.® 6

3. Focus on Maximizing Share of Wallet

4. Requirement to be “Easy to do Business With”

Traditional Product Customer

Pro

du

ct

A

Pro

du

ct

B

Pro

du

ct

C

Global AMs

Territory Reps

Inside Sales

eCommerce

Mid-Size

Small

Global

And, Sales Support

• Business

Development

• Pre-Sales

Support

• Product Overlay

• Industry

Specialist

• Installation

Support

• Customer

Service

Grouped BUs Complex SBUs

As customers consolidate, their expectations change. Technical expertise and site-level service become

tablestakes. Industry, applications and solutions to problems become differentiators.

Manufacturer Go-To-Market Orientation

© 2016 The Alexander Group, Inc.® 7

5. Research Funding is Uncertain

NIH Appropriations

Sources: IMF ; Company annual reports ; 1NIH Research Funding Trends, FASEB

Manufacturers can no longer rely on predictable government spending to build growth plans. Applied

markets and non-traditional geographies will be growth sources.

© 2016 The Alexander Group, Inc.® 8

6. Growing Opportunities in Emerging Markets

Sources: “Selling into Life Science Research 2020: The eCommerce shift,” October 4, 2014, PwC ; Company annual reports ; 1“Life Science and Chemical

Instrumentation Market – Global Forecast to 2019,” March 2015, Research and Markets

Emerging markets are forecasted to

gain market share in the life

sciences research market

Emerging markets require a disproportionate share due to market development requirements.

© 2016 The Alexander Group, Inc.® 9

2015 Life Science Sales Trends

1 Tapping New Segments for Growth Requires New Sales Models

2 One Size Does Not Fit All – Flexible Market Based Sales Models

3 New Business Teams for Aggressive Plays Against Growth Targets

4 Customized Sales Approaches to Penetrate Growth Segments

5 Field Marketing and Inside Sales to Forge the Path to Growth

6 Maximizing the Value of the Service Organization

7 Shifting the Tectonic Plates of Life Science Sales Talent

8 The New Life Science Seller – From PhD to Problem Solver

© 2016 The Alexander Group, Inc.® 10

Flexible Market Based Sales Models

BASE Growth

HIGH Growth

LOW Growth

Reposition

Grow Select

Markets

Grow; Keep Customers

Launch New Products

Control Pricing

Reduce Costs

Grow

Grow Really Fast

Phase I

Start-Up

Phase IV

Optimization

Phase II

Volume Growth

Phase III

Re-Evaluation

Re-Think Product & Market Strategy

Emerging markets need a mature model that educates the customer base and

leans on a mix of channels to stimulate demand.

© 2016 The Alexander Group, Inc.® 11

Customized Sales Approaches for Growth

Research Applied

Instruments

Consumables

Service

Research Market & Use Cases

Market: Universities,

biotech / pharma

Use Cases: Basic

research / bench science,

drug discovery, genotyping

/ genomics

Applied Market & Use Cases

Market: Hospitals,

diagnostic / screening labs

Use Cases: Disease

diagnostics, disease / drug

screening, genotyping /

genomics

Service Manager

/ FSE

Channel

Manager /

Distribution

Direct Rep,

Instrument

Sales

Direct Rep,

Hybrid

Instrument &

Consumables

Sales

Once a product is place – instrument or consumable – how it is grown differs by

customer segment.

© 2016 The Alexander Group, Inc.® 12

New Life Science Seller

Science

1. Customer Responsibility

2. Product Responsibility

3. Sales Process Resp. / Approach

1

3 2

1

2

3

Redefining The Life Science Sales Job The Formula For Success

Business

Advisor

Economic

Value

Today’s life science seller is evolving to be a problem solver that brings the full

value of the company to the customer.

© 2016 The Alexander Group, Inc.® 13

The Alexander Group Life Science Leaders

Matt Greenstein, Principal Matt is a principal in Alexander Group’s Stamford office. Matt co-leads

the Alexander Group’s life science practice and has worked extensively

across the industry on revenue growth projects ranging from strategy –

defining target segments, value propositions and revenue motions to

execution – designing organization structures, job, territories, incentive

plans and other critical revenue model enabling functions. Matt has

global consulting experience and is known for his fact-based, hypothesis

driven problem solving style.

Arshad Carim, Principal Arshad is a principal in Alexander Group’s San Francisco office. Arshad has

consulting experience on sales strategy and sales execution engagements

at small high growth, mid-market and Fortune 1000 sales organizations.

Arshad co-leads the Alexander Group’s life sciences sales practice and

enjoys working with clients to drive top-line growth through improvements to

sales effectiveness and sales efficiency. His work includes key elements of

the sales model including segmentation & targeting, coverage strategy,

sales process and productivity improvement, role and organization design

and evolution, and sales rewards program development.

© 2016 The Alexander Group, Inc.® 14

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