Life Sciences

2022 Commercial Priorities

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Five market forces and strategic areas that are a focus for commercial organizations.

At the beginning of 2021, Life Sciences and Analytical Instruments companies faced new realities. Organizations were shifting funds to growth segments, including Pharma, BioPharma, Clinical and new emerging markets. Commercial models were accelerating their digital competencies to answer for changing buyer behaviors and limited lab access.

Many organizations aligned their strategic priorities, including investments into marketing capabilities, new selling resources, virtual demos, enablement and commercial operations. These commercial investments coalesced with increasing customer demand, including a significant influx of funding into the space, ease of regulations and accelerated timelines on research and drug deployments. All this led to Life Sciences and Analytical Instruments companies finishing 2021 with record accomplishments.

Companies are now looking to continue their momentum in 2022.

Here are five market forces that will pressure commercial organizations moving forward:

	Sustained Double-digit Growth Illumina reports FY21 revenue of $4.5B, up 30%. Thermo Fisher shows 5-year annual revenue growth of ~15%. Agilent has grown revenue by ~50% over the last 5-years.
	Mergers and Acquisitions Thermo Fisher acquires PPD. Danaher acquires Aldeveron. Merck KgA acquires Exelead.
	COVID Demand Geneomics is accelerating in Healthcare. Cytiva and Pall report COVID-related revenue exceeding $1.5B.
	Supply Chain Sartorius Stedim acquires Xell, expanding the media offering and production network. MilliporeSignma wins $137M DoD contract to establish a lateral flow membrane facility in WI.
	Inflation and Labor Market U.S. unemployment rate is down to 3.9%. U.S. inflation rate is expected to average ~7% over the next 12-months.

As companies continue to migrate and evolve their commercial models, they must continue to tether their priorities to these market forces.

Commercial Priorities

Strategic plans will feature five areas of focus, each of which will appear in future articles:

Customer centricity. Commercial strategy, structure, tactics and governance anchored to scientific outcomes.
Digital Momentum. Data, process and technology propelling next-generation marketing, sales and service motions.
Margin Discipline. Reinforcement of pricing strategy through training, coaching, reporting and policies.
Talent Management. Onboarding, training, coaching and career paths combating the impact of the “Great Resignation” and war for talent.
Goal and Incentive Alignment. Frameworks and policies supporting immediate-term realities.

Life Sciences and Analytics Instruments company plans must be agile in 2022. Some organizations have shifted their planning to quarterly and semi-annual cycles to tackle market pressures. Alexander Group is a leading revenue growth expert that helps companies develop and adapt strategic plans while collaborating with clients to install the structure and management systems to execute growth strategy and capture profitable growth.

Contact us for a full readout of the findings from the latest Life Sciences and Analytical Instruments Industry Trends Study or register for one of our upcoming virtual roundtables.

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