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Tag Archive for: Life Sciences

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The Multitude of Risks Facing the Life Science Industry

The life science industry by nature carries a multitude of inherent risk. The board of directors and executive body must address risk management on a continual basis, meeting constant demands stemming from partners, insurers, physicians, patients, lawyers, and media. As need arises, added complexity and heightened risk can overlap these issues, creating a more difficult environment for overall efficient company management.

Because of the nuances involved in the life science industry, you must take appropriate precautions to identify and evaluate all risks to your organization. They could include:

  • Compliance with numerous regulatory entities such as the Food and Drug Administration, Department of Health and Human Services, Securities and Exchange Commission, Department of Justice, etc.
  • The ability to adapt to constantly changing and accelerating global regulatory activities
  • Security breaches and IT failures
  • Inadvertent exposure of intellectual capital
  • Cost and availability concerns

Life Science firms can also take risk and turn it into a marketplace opportunity. The most common areas where we witness life science firms that manage the flip side of risk include:

  • Competitor product failure that allows for your firm’s product to become a forerunner for approval
  • Products are approved ahead of schedule, allowing for early availability
  • Product manufacturing improves or is produced ahead of initial projected time frame
  • An unanticipated gain in market need for a product or unanticipated market sharing upon launch of product

It is important to implement a broad risk management plan. Tips for advancing your risk management strategies include:

  • Keeping on or ahead of schedule for product review and release through strategic planning
  • Addressing increased demand for cost effective products from physicians, consumers, politicians and regulators and increased interest from investors
  • Heeding the call from consumers for safer or risk-free breakthrough therapies

Biopharmaceutical and life science firms need to rely on a comprehensive insurance plan to deal with an ever-evolving matrix of risk. TechAssure members can help your firm deal with a multitude of issues concerning risk management including, but not limited to: network and privacy security, increased global competition, loss of intellectual property and delays or business interruption in Research and Development. Please contact us for more information on how our members can help you minimize risk to your life science firm.

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Risk and the Characteristics of Rapid Growth Companies

In the technology and life sciences industries there are small companies, growth companies, mid-size companies, small cap companies and large companies.

A small company can be a grow company by adopting their business practices. While every business is different, many characteristics are common with successful rapid growth companies.

Rapid Growth Companies Usually Take Risk Management More Seriously – Rapid growth companies aren’t afraid of taking calculated risks, but they often learn how to turn risk into opportunity and they do that better than their competition. That means that they before they jump into opportunities they calculate risk and are more aware of the potential consequences. Developing a corporate risk management approach at an earlier life cycle is more important for continued interest by investors and strategic partners.

Rapid Growth Companies are Usually Better at Business Planning – Rapid growth technology firms are always looking ahead in the marketplace and understanding the changing world, view and opinions. This strategy helps them consider and plan their exit strategies. As with any risk management program, it is helpful if you know where you want your organization to be in the next 1-3 years.

Rapid Growth Companies Know their Target Profit Margins – Rapid growth companies usually know their target profit margins. Most emerging technology firms recognize that operating on a low margin for a long period of time makes it difficult to accomplish growth goals. It is important to factor in your total cost of risk as you take steps towards your target profit margin.

Rapid Growth Companies Pay Close Attention to their Market – Rapid growth companies pay close attention to the economy and the views of their investors. If you stay isolated on a narrow part of the market, or have only one product, your companies runs the risk of being stagnant. Rapid growth companies know how to seek out new markets and develop new products and keep risk management central to those decisions.

Technology and Life Science firms are diverse in size, growth prospects and type of businesses. While they share some common characteristics, the rapid growth firms are the ones that drive news in a flat economy.

Contact a TechAssure member to learn more about how these companies are taking risk management and making it central to their growth plans.

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TechAssure Association Reviews Trends in Verdicts and Settlements for First Half of 2013

Click here to view our one-page summary.

 

In June 2013 TechAssure Association reviewed litigation trends in the technology and life sciences industries for the first half of 2013.

The following summarizes the findings on the current trends in verdicts and settlements in the technology and life science industries:

Top 10 Claim Categories in the Technology Industry

TechAssure reviewed 349 verdicts and settlements in the technology industry and concluded the following:

84% of the cases reviewed found the top claim categories: (in rank order)*

  1. Patent
  2. Privacy, Network Security
  3. Price Fixing
  4. Employment
  5. Consumer Class Actions
  6. Fraud
  7. Antitrust
  8. Contractual
  9. Insider Trading/SEC
  10. Trademark

TOP 10 CLAIM CATEGORIES in the Life Science Industry

TechAssure reviewed 310 verdicts and settlements in the life science industry and concluded the following:

82% of the cases reviewed found the top claim categories: (in rank order)*

  1. Products
  2. Patent
  3. False Claims/False Ads/Marketing/Labeling
  4. Price Fixing
  5. Antitrust
  6. Employment
  7. Kickback/Billing Practices
  8. Whistleblowing
  9. Fraud
  10. Contractual

* Verdicts and settlements January 2013 to June 2013.

TechAssure also noted a number of growing litigation trends during the first half of 2013. The growing litigation categories included:

Growing Litigation Categories:

  • Privacy
  • Network Security
  • Data Breaches
  • Whistleblowing