Posted at 10.11.2018
Novocure is a privately presented medical device company concentrating on the treatment of various types of cancers. It is rolling out NovoTTF - 100A device that uses specially tuned, low power electric areas called Tumor Treating areas to disrupt the divisions of malignancy skin cells. The Tumor Treating domains are applied to the tumor region using non-invasive insulated electrodes put on patient's scalp. The electrodes which look like bandages are mounted on a battery managed lightweight device that generates the areas. NovoTTF - 100A device has completed pivotal trials for Recurrent Glioblastoma effectively. NovoCure must enhance itself quickly from a research oriented firm to commercial business once it will get the Pre-Market Authorization for the treating Recurrent Glioblastoma using NovoTTF - 100A. This would require several capacities to be built within a short while frame. A fresh business model must be developed. Tumor Treating Areas is an oncology therapy that needs to be delivered by the portable hardware, which apparently is a fresh delivery model for the oncologists, neurosurgeons and even for patients for that matter. There are many challenges which need to be tackled with this business model especially how this remedy should be provided to patients. NovoCure must choose a syndication and service delivery model, billing and reimbursement process. NovoCure also needs to crank up its creation and establish a supply chain management process to ensure reliable product availability. It also must build patient and physician support infrastructure about the world.
NovoCure has the potential to create huge earnings from the malignancy treatment using Tumor Treating Domains technology. NovoCure experienced to find a way to fund their way to market. NovoCure would also prefer to retain commercial rights to all possible cancer indications. But, getting to the near future needs financing. NovoCure would need an additional $35 million to document the PMA software for recurrent glioblastoma, complete the non small cell lung tumor pilot trial and complete the two year enrollment of the pivotal trial for newly diagnosed glioblastoma. There have been three options available for NovoCure which included attracting additional venture capital firms, getting close a strategic corporate and business partner and/or bringing in a substantial angel Entrepreneur.
Since the elements of the tactical fit of NovoCure's Tumor Treating Fields with the chemotherapy manufacturers is clear, NovoCure is expected to create significant interest among the manufacturers of chemortherapy real estate agents. NovoCure's TTFields technology may be used to make chemotherapy more effective. TTFields could be recommended in conjunction with the chemotherapies. This can provide an edge to NovoCure because NovoCure can exploit the existing elaborate global circulation infrastructures of the pharmaceutical companies to market therapies to oncologists and patients. The commercial life of TTFields is long set alongside the chemotherapy drugs. Because of this TTFields can make each drug better in its turn as the new chemotherapy drugs are developed.
Since NovoCure is not actually thinking about licensing out some of its target tumors signs, NovoCure can deal with in-house venture cash of the large pharmaceutical companies like Pfizer, Johnson & Johnson and GlaxoSmithKline that have founded investment organizations controlling significant resources. These funds can not only bring equity financing, but also the credibility and "halo effect" of having approved the inspection by a respected industry player.
The leading capital raising firms who are known for making quick decisions were at a stand-still because of the liquidity crisis when NovoCure is at a critical level. As a result raising additional capital raising was not a choice. Although attracting business philanthropy is a feasible option, NovoCure will not get the advantage to exploit the global syndication infrastructures which is apparently available when they appeal to a strategic partner. Because of this NovoCure should entice a strategic partner to invest in for $35 million to go forward.
NovoCure needs to convert itself quickly from a study oriented organization with only 38 employees worldwide to commercial business. This transformation would cause many changes and create many issues which need to be addressed.
NovoCure might need the help of a Management Consulting company which is experienced in Change Management assistance. The Change Management requires a structured method of be used to convert Individuals, groups and organizations from a present state to desired future state. It really is an organizational process which is targeted at helping employees accept and embrace changes in their current business environment. Various types of group changes where NovoCure might need assistance are strategic changes, scientific changes, structural changes and changes in the attitudes and conducts of personnel which may be provided by experienced Management Consulting businesses.
If we look at the statistics, Annual event of real human glioblastoma in only United States, Europe and Japan is 20, 000 - 25, 000 circumstances. Aside from these countries, if NovoCure would like to extend to the Asian Markets as well, you will see a huge influx popular after the PMA agreement for recurrent glioblastoma is obtained. In cases like this, NovoCure may need to set up their bases in different parts of the entire world for processing the devices. In addition, it needs to concentrate on providing support infrastructure, choosing product delivery model and choosing repayment services. In this case, NovoCure might need assistance from a Management Consulting company which may bring their experience to plan for development of coaching skills within the business and operational improvement services. NovoCure can try to adopt the Source Chain and Operational model which is put in place by the successful companies like Dell or Wal-Mart for the Businesses process which will be very crucial after the PMA approval with the help of experienced Management Consulting Firms.
One of the major issue/draw again with NovoCure's Tumor Treating Areas device is that the cost of these devices is exorbitantly high. It would be difficult for NovoCure to attain wide customer basic (Customers in this framework will include physicians who will suggest the treatment/device, drug stores who'll distribute these devices and patients who will use these devices) with such a higher price. NovoCure must check out in its Research and Development to innovate on producing price and product differentiation.
Although the merchandise is portable, it is comparatively big especially since it has to be worn during the day. NovoCure must reduce this patient treatment time and also make an effort to decrease the size and weight of the merchandise. Cancer may appear for various types of patients depending on get older, stages of cancer and condition. NovoCure can innovate on these lines by providing different versions of the product for different age group, stages of malignancy and different medical ailments. Ex lover: Very young age / Old age and people with long term medical problems have to be provided a product with considerable features to cure their disease. If NovoCure must extend to Asian Markets where there is a huge populace of middle income people, NovoCure must provide this Price and Product differentiation to customise products and fee customers nearer to their reservation price.
Although NovoCure is doing clinical tests for different types of cancer, this technique needs to accelerated. Development and Clinical tests for different types of cancer must taken in parallel. NovoCure need to hire skilled individuals from across the world because of this process. The Management Consulting firm would help NovoCure in this entire process. NovoCure needs to grow its R&D bottom part and start scientific trials for different types of cancer in this manner.
NovoCure's Tumor Treating Fields Technology can be utilized effectively as Blue Ocean Strategy to Market their products especially because of nominal side effects compared to other chemotherapies. NovoCure must raise funds for conducting scientific trials which can be achieved by attracting a strategic trader. Once they raise funds, in addition they need to analyze and solve the business enterprise challenges which can be done and taking help from Management Consulting businesses. NovoCure also needs to continue its development process to rotate out different products with price and product differentiation to attain wide customer bottom. With NovoCure, World can be an improved place for malignancy patients to live in and the Cancer tumor Patients across the world can say "Never, never, never give up".