Partnerships between MedTech and pharmaceutical companies are not a new phenomenon in the healthcare industry. They often provide a strategic opportunity to invest in new technology development while each company provides unique skill sets in joint projects and programmes. These partnerships include co-development of medical devices for optimised and patient-focused drug delivery, biomarker, and companion diagnostic tests; procedure plus drug treatment modalities; and digital therapies, combining therapies with digital tools for optimised patient experience and response. However, having two companies working closely together in a heavily regulated industry creates unique challenges to be navigated for project or programme success . Despite this, co-development remains an exciting option for both MedTech and pharma companies, with strong project management as a key driver for success.
MedTech-pharma partnerships have a lot of value to offer to both companies, with each party having an opportunity to complement and learn from one another. For example, MedTech companies offer excellent engineering skills, rapid innovation cycles, a focus on data and analytics, and an agile product development process (particularly for software as a medical device (SaMD) solutions), while pharma companies’ strengths are drug discovery, planning, clinical trials, commercialisation, and branding.
Figure 1: Strengths and opportunities for joint pharma and MedTech partnerships
The core challenges of managing MedTech-pharma partnerships
Partnerships of all kinds come with their challenges. Our team’s experience in managing MedTech-Pharma partnerships has identified some of the most common challenges, all of which can be overcome with good project management structures, communication tools and strategies, and an intense focus on alignment:
- Clashing company culture
How does a heavily regulated, and often risk-adverse, pharma company work smoothly with a smaller tech company that has a “fail fast” mentality?
- Ways of working and expectation management
Each company has its own processes and rules to follow, which need to be navigated without drastically impacting project timelines and deliverables.
- Double governance
Two companies means two rounds of decision making that often have different processes and timelines for joint decision needed for the project – whether it be budget approval, go-no-go decisions, or scope endorsements.
- Paying for the development
IP ownership, shared costs of co-development, and market authorisation holders are important decisions to make at the start of the challenge.
- Data management
Who collects, access, and owns the data is a key consideration, particularly in instances where post-hoc analyses may be conducted for additional interpretation and to answer regulatory or market questions.
- Business model alignment
Priorities will vary between the companies, often with one company valuing the development project higher than the other company; this can create tensions if the focus and sense of urgency is not shared.
Best practices for MedTech-pharma partnerships
A clear and strong project management structure and organisation is key to addressing these challenges. We find that a small but effective team focused on the structure, ways of working, and communication of co-development projects has huge impacts on the project output.
Some of the best practices and specific tools that are beneficial for co-development projects between pharma and MedTech include:
- Clearly defined roles and responsibilities across both teams
This includes defining direct role counterparts within each company that should have routine interactions for functional alignment. Effective tools and methods include RACI charts adapted to two teams, project charters, and other stakeholder management methodologies to map out key stakeholders, decision makers, and subject matter experts.
- Effective lines of communication
Clear and collaborative communication is supported by a routine reporting structure to share key information broadly across both teams, aligned meeting structures and agendas, and shared workspaces. This includes monthly reports of key information and bi-weekly development dashboards.
- Early development of any required firewalls
Sharing of certain data between companies (or even within a company, if the innovation in development is competing with another internal innovation) needs to be carefully considered; while shared workspaces are key for collaboration, separate internal workspaces are needed for internal alignment opportunities as well. This requires alignment with each company’s strategic teams to identify firewall needs and develop standard operating procedures (SOPs) and training modules as needed.
- Strong and clear partnership agreements
A strong and well-understood foundation of how the companies will collaborate is key to defining the roles and responsibilities of the teams, while helping to define clear expectations. This requires legal frameworks and documents outlining the nature of the working relationship, including joint performance indicators.
- Aligned project management structure
Both companies should have PMO roles that collaborate and communicate, starting the project with a strong structure and defining the ways of working, each company’s governance processes, and communication management. This includes mapping out company and project governance processes and estimated timelines to decision-making, as well as developing an alliance or partnership framework for required functional discussions and decisions that can filter up to higher-level governance and decision-making.
- Collaborative meetings are key for success
Working together often creates better outcomes for both companies, allowing for the identification and discussion of risks and challenges before situations become critical. Additionally, building a human understanding of the other company creates a stronger team atmosphere. When possible, use face-to-face meetings at kick-off or during key decision points during the project to strengthen collaboration.
While sometimes overlooked, establishing a strong project management structure and team is crucial to manage these project aspects and relationships. The benefits of this support is clarity and alignment between both teams, while allowing functional experts to maintain their focus and energy. Together, this empowers effective and successful co-development projects between pharma and MedTech companies.
Figure 2: PMO as the foundation for a strong and successful collaboration
Your next steps
Contact us to explore how to best navigate partnership projects within the pharma and MedTech industries. Our team is ready to help you set up a strong structure and navigate the project itself.
Contact us
Zeger De Groote
Senior Manager, PwC Belgium
