NOVEMBER 2024LIFE SCIENCES REVIEW9The multitude of changes in the EU market access environment increases the insecurity of newcomers and represents a formidable entry barrier, which certainly was not intended by the European Commission. Therefore, it seems likely that more and more biotech companies will make use of distributors: service providers to take care of logistics, market access, marketing, medical affairs, and sales on their behalf in Europe rather than establishing their own operations. This business model, which is already used by many biotechs in Central and Eastern Europe and other geographies that biotechs tend to deprioritise, is now spreading to Western Europe. Unfortunately, these services come at a high price to OEMs. After 3 to 5 years, the commissions that distributors ask lead to inferior profitability compared to the upfront investment that comes with establishing your own operations. Since it is always hard to sever relations with a distributor and manage the transition period, biotechs should evaluate both options, challenge former best practices in the industry, and forego unnecessary costs. What investment is really needed? Evidence generation is definitely the last place to cut costs, though clinical trials can arguably be run much more efficiently by leveraging new technologies. But do you really need that creative agency? Is that market research really providing insights? When addressing small customer audiences, is the investment in that CRM adding value? Does your headquarters really have to be in Switzerland? Qualified staff and a tax-friendly environment can also be found in the Czech Republic or Poland at much lower costs. The unmet medical need in many therapeutic areas is still substantial ­ and it is the purpose and the duty of our industry to address unmet medical needs. Patients in need cannot wait for a change in the interest policy of Central Banks that may revitalise investors' excitement for biotech. And with creativity and flexibility, it is still possible to establish a sustainable business. History will reward bold companies with a competitive advantage over others who hesitate. The complexity of European pricing and reimbursement systems has always been daunting
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