In the fast-evolving world of life sciences, CEOs in pharma, biotech, and medtech face increasing pressure to pivot toward patient-centric business models. This shift is critical for staying competitive in an industry that is being rapidly reshaped by consumer expectations, digital disruptors, and new technologies like AI. However, while many CEOs understand the need to build patient-centric businesses, they often struggle with execution. By recognizing and avoiding five common pitfalls, life sciences companies can successfully launch consumer-focused ventures and generate long-term value.
- Over-reliance on In-House Regulatory and Compliance Expertise
In the highly regulated life sciences sector, CEOs often trust their in-house regulatory and compliance teams to navigate the complex landscape. However, this reliance can lead to bureaucratic delays that hinder the speed and flexibility required for consumer-centric business models. To successfully launch new ventures, CEOs should consider creating independent business units or spinouts with more autonomy, ensuring that new ventures can innovate and move quickly without being bogged down by traditional corporate processes.
For example, a global medtech company initially launched a new consumer health business integrated into the parent company, but the process was slow due to regulatory red tape. After establishing a separate process for releases, the team reduced software update timelines by 60%, enabling faster go-to-market strategies.
- Waiting Too Long to Perfect Products Before Launch
Unlike the traditional approach in life sciences, where new products undergo extensive trials before reaching the market, consumer-facing products benefit from an iterative development process. Launching a product early and testing it in real-world settings allows for continuous improvements based on customer feedback. This agile approach accelerates time-to-market and increases the likelihood of achieving product-market fit.
Take the example of Apple’s Heart Study, which used the Apple Watch to monitor heart rhythms in over 400,000 participants. By launching quickly and testing the product with a wide consumer base, Apple was able to refine its offerings and extend the value of an already-commercialized product without waiting for full clinical trials.
- Difficulty in Attracting the Right Talent
Attracting top-tier talent to build and scale new consumer-focused businesses can be challenging, especially when relying on traditional corporate recruitment practices. Life science companies must embrace a more agile, startup-like approach to attract the necessary talent. By setting up separate recruiting functions that understand the mindset of digital-native candidates, companies can successfully build high-performing teams to drive their ventures forward.
A global medtech company overcame this challenge by creating a dedicated recruiting function for its consumer health business. This team was able to hire over 200 data science and consumer tech professionals in just one year, helping the company scale its new business quickly.
- Over-reliance on Healthcare Providers to Drive Sales
For traditional pharmaceutical or medical device launches, companies often depend on healthcare providers and pharmacies to drive sales. However, in the consumer health space, CEOs need to rethink their go-to-market strategy. By adopting viral marketing and product-led growth tactics commonly used by digital-first brands, companies can reach patients directly and more effectively.
For instance, a life science company launched a B2B2C marketplace by combining its traditional sales force approach with digital marketing campaigns. This omnichannel strategy helped the company achieve rapid market adoption and scale its new offering.
- Failing to Leverage the Full Power of AI
AI can significantly speed up product development and improve customer engagement. However, many life science companies fail to leverage AI effectively in their business-building processes. By using AI for rapid prototyping, consumer insights, and marketing optimization, life sciences companies can accelerate time to market and deliver personalized experiences that resonate with their target audiences.
AI can also continue to add value after a product launch by improving predictive analytics, customer acquisition campaigns, and retention strategies. With the proper internal expertise or by partnering with third-party specialists, life sciences companies can fully capitalize on AI’s potential to drive growth and enhance customer satisfaction.
Transform Your Life Science Business with BioBoston Consulting
As a life sciences leader, navigating the challenges of building a patient-centric business is no small feat. By addressing these common pitfalls, your company can avoid costly mistakes and build a sustainable, innovative future. At BioBoston Consulting, we specialize in helping life science organizations scale their new consumer-facing ventures successfully. Whether you are looking to accelerate product development, optimize AI strategies, or improve talent acquisition, our expertise can guide you toward achieving your business objectives.
Ready to take the next step in building a successful consumer health business? Reach out to BioBoston Consulting today to learn how we can help you avoid common pitfalls and create a business model that drives long-term success.