Life Science Leader Magazine Supplements

CMO 2015

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EDITOR'S NOTE LSL LIFESCIENCELEADER.COM THE CMO LEADERSHIP AWARDS 2015 4 the budget or realize expected returns. For example, the article discusses how a new computer adopted by Oxford Health Plans to better process paperwork ultimately resulted in problems that caused a 63 percent drop in the company's stock price. Another example was Union Pacific Railroad's purchase of Southern Pacific, which resulted in traffic issues, lost cargo, and massive delays. Of course the life sciences industry is not immune to the concept of delusional optimism. I'm sure most of you can cite your own exam- ples of when this affected a previous project you were working on. And as the amount of outsourcing in the industry increases, so too does the potential for flawed decision making. After executing an outsourcing model for a long period of time, overconfidence could seep into a sponsor company's leadership. Hubris could blind the company, causing it to pay less attention to the quality, reliability, and regula- tory knowledge of it partners. The results, of course, could be disastrous. Helping you avoid any disasters due to over- confidence with outsourcing is one of the purposes of this CMO Supplement. We want to help you make the right decisions by keep- ing you informed of best practices and giving you access to insights from experienced industry experts. For instance, in the pages that follow, you'll find informative articles giving you advice on choosing a CDMO and finding capital funding. Beyond this supplement, we're endeavoring to continue to bring you exclusive and impact- ful outsourcing content via our Outsourced Pharma West Conference & Exhibition. The standing-room only sessions at our 2014 event prompted us to schedule two of these conferences this year, one in San Diego in August and a return engagement in San Francisco in November. No matter what stage you're at with adopting an outsourcing model, it's always good to occa- sionally take a step back and reevaluate your status quo. Hopefully, this supplement and our conference can help you with that process. l LIFE SCIENCE LEADER 5340 Fryling Rd., Suite 300 Erie, PA 16510-4672 Telephone: 814 897 7700 Fax: 814 899 4648 WWW.LIFESCIENCELEADER.COM M A R CH 2 015 CM O S U PPLE M E NT ight now, enthusiasm in the pharma and biopharma markets seems to be running high. My col- league Rob Wright, chief editor of Life Science Leader , recently returned from the JP Morgan Conference in San Francisco. One of his takeaways was the current level of excitement in the industry. Several sources, he says, noted we can expect to see major biotech deals inked in 2015. Biosimilars? Declining revenue? Recession? Patent cliff? Damn the torpedoes! Full speed ahead! But while enthusiasm is good, we must be careful not to let it cloud our business deci- sions. One of the best articles I read last year was from the July 2003 Harvard Business Rev iew, titled "Delusions of Success: How Optimism Undermines Executives' Decisions." The advice is valuable and time- less. Simply put, overconfidence can often lead to poor decision-making. This problem is more common than you might think. The authors note that 70 per- cent of new manufacturing plants in North America close within a decade, and 75 percent of mergers and acquisitions never pay off. Even efforts to enter new markets, a growth strategy for many pharmaceutical firms, end up largely unsuccessful. A key observation in this article was the role of flawed decision making. In the grip of what the authors call the planning fallacy, manag- ers base decisions on "delusional optimism" — overestimating benefits and underestimat- ing costs. Consequently, they have an attrac- tion to initiatives that are unlikely to satisfy VP OF PUBLISHING Jon Howland / Ext. 203 CHIEF EDITOR Rob Wright / Ext. 140 rob.wright@ EXECUTIVE EDITORS Wayne Koberstein Louis Garguilo Ed Miseta Trisha Gladd EDITORIAL DIRECTOR Dan Schell / Ext. 284 SENIOR DIRECTOR OF PUBLISHING Perry Rearick MARKET DIRECTOR Robert Wilson PRODUCT DIRECTOR Jenell Skemp PROJECT MANAGER Megan Rainbow DIRECTOR, LIFE SCIENCE TRAINING INSTITUTE Bill Beyer PUBLISHER, CLINICAL & CONTRACT RESEARCH Sean Hoffman 724 940 7557 / Ext. 165 PUBLISHER/BIOPHARM & LAB Shannon Primavere / Ext. 279 PUBLISHER/OUTSOURCING Cory Coleman / Ext. 108 GROUP PUBLISHER/OUTSOURCING Ray Sherman / Ext. 335 BUSINESS DEVELOPMENT MANAGER Mike Barbalaci / Ext. 218 SR. ACCOUNT EXECUTIVE Scott Moren / Ext. 118 PRODUCTION DIRECTOR Lynn Netkowicz / Ext. 205 MANAGE SUBSCRIPTIONS 814 897 9000 / Ext. 315 @ OutsourcedPharm Enthusiasm Is Good… But Don't Overdo It E D M I S E T A Executive Editor R

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