Don Tracy, Associate Editor 

Women in Trade

PC: You participated in a roundtable surrounding women in trade. What were the key takeaways from that discussion?

It was interesting to me that the people in the room had similar experiences. What they liked the most about their trade roles was that they were challenging, they learn something new every day, and the importance of the trade role in the organization as a whole. They commented on that, and those were some of the key takeaways.

The other one was mentorship. We had four pillars as part of this exercise. One was networking, one was mentorship, one was allyship, and one was executive education. Every table ended up talking a little bit about mentorship and how important it is to find a strong mentor, whether it's female or male, to help you grow in your career.

PC: How can women in the pharma trade industry continue to empower future leaders in this space?

I think it comes down to three C's, communication, collaboration and commitment. Helping the younger generation or new individuals in this field by communicating with them, collaborating with them on some things that they might need to do or want to do to help their career, but also be committed to helping them.

I’ll get back to the mentorship. Depending on who you find as a mentor, that could make your career. You need to find someone that’s willing to go that extra mile for you, and I saw a lot of that yesterday. It was really interesting to see how quickly, how many people started sharing contact information and really wanted to help one another in any capacity that they could. At the end of the day, I think that's what it's about, just helping somebody else.

Videos

Lisa Arthurs, VP, trade, Two Labs, discusses a roundtable discussing women in trade as well as empowering future leaders. 

Trade & Channel Strategies 2024: Empowering Women in Pharma Trade

Industry Challenges

PC: What have been some of your goals in terms of what you wanted to accomplish here at Trade & Channel Strategies?

I always look at Trade & Channel as a nice capstone to the year. It's a great time to assess what's been accomplished in the year and get ready for the coming year, and also connect with a lot of great industry colleagues to find out what the hot issues are. Obviously, our goals were to do all those things, and I think the biggest thing that happens is we use this meeting as a springboard into next year by setting the stage for addressing a lot of those key issues that are discussed here at the meeting.

PC: Have there been any sessions in particular that have caught your eye?

There are two that stand out right now. First is the keynote session, which is speaking to the issues that the industry is facing across stakeholders in terms of the pressure from regulatory and the impact from the Inflation Reduction Act. It’s getting challenging now in terms of margin compression and regulatory issues that have to be dealt with in compliance. There’s also a number of headwinds ahead, primarily from a standpoint of more GenMed and what I would call tweener therapies. There’s still room to maneuver from the standpoint of specialty therapies and infuse therapies in the pipeline.

I would say that in general, the main context is how are we dealing with some of these and what structural changes do we need to make to be able to still be profitable, competitive, and grow in this more challenging environment. The other is just around data, obviously AI, and the impact of AI on everything we do is upon us. There was a great session on data and analytics that I just attended. Where do we apply AI, where do we start first when we're trying to enhance and create new structures for data governance and data management?

Articles

Jon Hamrick, partner, Curatio Scientia Advisors, discusses upcoming industry challenges at this year's Trade & Channel Strategies Conference in Philadelphia. 

Trade & Channel Strategies 2024: Navigating Industry Challenges

ROIC

PC: In what ways does return on invested capital (ROIC) differ in its significance for biopharmaceutical companies compared to other industries, considering the unique R&D cycles and patent lifespans?

So, let’s look at two companies, and you can guess who those two companies are. Why? Well, it’s because of the GLP-1 inhibitors. Those two companies are Novo Nordisk and Eli Lilly. Their ROICs are astronomical I think Novo Nordisk is around 50%. Most companies would kill just to have a gross margin of 50%. Their ROIC is 45% at the bottom before taxes, so that's astronomical, and that's why the ROIC is so important. 

: The upcoming industry audit presentation will analyze key metrics and trends among top biopharma companies, focusing on financial and strategic performance. The audit, now in its 23rd year, has evolved from analyzing 25 to the current "nifty 15" publicly traded pharmaceutical companies, reflecting industry consolidation. Core metrics assessed include enterprise value, enterprise value-to-sales ratio, and return on invested capital (ROIC), providing insights into shareholder value, growth potential, and operational efficiency. High ROIC figures, such as Novo Nordisk’s 45%, underscore the sector's exceptional profitability compared to others, driven by innovative products like GLP-1 drugs for diabetes and weight loss.

Two broader themes contextualize the audit. First, Johnson & Johnson ranked sixth overall and fifth in innovation among 250 U.S. companies in the Drucker Institute's Best Managed Companies list, reflecting the growing recognition of pharma's management excellence. Second, diversity remains a focal point. Women now outnumber men in U.S. medical and law schools and achieve parity in MBA programs, signaling progress in advancing women into executive roles, though female representation among CEOs remains limited, especially globally.

Novo Nordisk stands out not only for its market value exceeding Denmark's GDP but also for its philanthropic initiatives, such as the world-leading Novo Nordisk Charitable Foundation. Such efforts illustrate how biopharma companies are increasingly integrating societal objectives into their strategies. In a shifting market, financial performance alone is no longer sufficient; long-term value creation must align profitability with stakeholder benefits and community impact. This balance, exemplified by companies like Novo Nordisk and J&J, will likely shape how the industry communicates its value to investors amidst uncertainties.

Bill Trombetta, PhD, professor, healthcare strategy, marketing, St. Joseph's University, discusses the difference between return on invested capital in pharma compared to other organizations. 

Trade & Channel Strategies 2024: The Significance of Return on Invested Capital for Pharma Companies

Enterprise Value

PC: What specific trends have you observed in enterprise value growth and enterprise value-to-sales ratios among top biopharmaceutical companies?

In my article, I look at seven metrics. There could be as many as 5,200 metrics. Pick your own study that you want to look at as to who's the best. But I look at seven and the three metrics include enterprise value, which is what's the company worth. Did you create shareholder wealth, or did you destroy shareholder wealth? So that's critical. The second one is called nterprise value to sales, and that's a ratio that to make it as simple as I can, the higher that number is, the sky is the limit. The lower it's a good company and pays dividends, but perhaps maybe it’s at a point where they're kind of moving along, and they just need a bump to move up more in growth. The third one is return on invested capital. You take your total stock value and add into that debt, because debt is part of your value and then that measure is a return on invested capital. So those are the three basic metrics I look at in the in the study. 

The upcoming industry audit presentation will analyze key metrics and trends among top biopharma companies, focusing on financial and strategic performance. The audit, now in its 23rd year, has evolved from analyzing 25 to the current "nifty 15" publicly traded pharmaceutical companies, reflecting industry consolidation. Core metrics assessed include enterprise value, enterprise value-to-sales ratio, and return on invested capital (ROIC), providing insights into shareholder value, growth potential, and operational efficiency. High ROIC figures, such as Novo Nordisk’s 45%, underscore the sector's exceptional profitability compared to others, driven by innovative products like GLP-1 drugs for diabetes and weight loss.

Bill Trombetta, PhD, professor, healthcare strategy, marketing, St. Joseph's University, discusses observations in enterprise value growth and enterprise value-to-sales ratios among top biopharmaceutical companies. 