Alacrita's radiopharmaceuticals consultant has had a distinguished career in the nuclear medicine industry. For a recent radiopharmaceuticals strategy project for a major public/private investor in a BRIC territory, Alacrita advised on investment strategy for building nationwide radiopharmaceutical infrastructure and capacity in the investor's home country. Alacrita held a two day strategy workshop with the investor and other stakeholders during which we set out the radiopharmaceuticals landscape, value chain and advised on investment strategy. We discussed potential business models in the radiopharmaceutical space and recommended that the ideal approach should be fully dedicated to radioactivity in healthcare.
Alacrita reviewed the nuclear medicine market, which is growing fast and forecast to grow faster beyond 2015 as a high number of new radiolabelled molecules come on to the market, cautioning that some market segments will stabilize or even decline.
Alacrita discussed profitability of various industry segments (i.e. equipment vs drugs), drawing the client's attention to the significant opportunities to increasing profitability, especially in PET businesses. We forecast that the radiotherapeutic drugs market, so far considered a niche, is likely to substantially increase before 2020 and attract big pharma participation as new clinical data emerges showing substantial evidence of efficacy (e.g. Algeta/Bayer's Alpharadin).
We reviewed the consolidation trends in the radiopharmaceutical industry, explaining how the main driving force for consolidation is the arrival of new tracers and the acceptance of personalized medicine that is based on nuclear medicine. This is illustrated by the expectation of 10-20 new molecules expected over the next decade, contrasted with no new large scale tracers reaching the market since 1998.
The investor was also intending on embarking on an international radiopharmaceutical M&A strategy, and Alacrita advised on potential targets (small and large) in the EU and USA. We also helped the investor refine its message concerning the value proposition that they would bring to a corporate alliance.