Revenue Growth Programs for Life Sciences Companies

Johnny Grow

Business Growth Architects for Pharma, Biotech and Medical Device Companies

Ready to accelerate company growth?

How to Grow a Life Sciences Company

So how do you most effectively grow a life sciences company? That's a question best answered with data.

Research findings published in the Business Growth Report revealed that the highest growth pharma, biotech and medical device companies (i.e., the Best-in-Class which achieved the top 15% growth in each sector) excelled in up to 9 revenue growth programs.

These 9 programs stood apart from all others in terms of their ability to deliver the most significant and sustained revenue impact. A relative comparison showing how these 9 growth programs were applied by each growth archetype is displayed below.

Life Sciences Growth Programs

Here are some of the research insights that share how these programs impact company growth.

Growth Strategy

Business growth research found that companies which actively managed a Revenue Growth Strategy achieved 2.8 times greater year over year revenue growth than those who did not. The Revenue Growth strategy is not your business plan. It's the selected revenue programs and roadmap to achieve targeted financial results in the shortest time and least cost.

As shown by the revenue growth results of the Best-in-Class life sciences companies, advancing your growth strategy can increase annual revenue growth by 1.3 to 1.7 percentage points and EBIT margins by 1.6 to 2.1 percentage points.

RevOps

The highest growth companies were three times more likely than their lower growth peers to use centralized Revenue Operations (RevOps) to orchestrate enterprise-wide revenue execution.

The company growth research demonstrated that business leaders who applied RevOps to holistically manage business development strategies, processes and technologies achieved annual revenue growth of 1.8 to 2.5 percentage points and EBIT growth of 1.9 to 2.9 percentage points.

Company Culture

Pharma, biotech and medical device companies that cited corporate culture as a growth strategy achieved an average of 40% higher revenue growth than those who did not. They also achieved 14% higher revenue per employee and 8% lower staff churn. The research that linked corporate culture to company growth found that creating an intentional and proactively designed growth culture can grow annual revenue from 1.7 to 2.5 percentage points and EBIT margins by 2.2 to 3.1 percentage points.

Strategic Alliances

Strategic alliances also separated low from high growth companies. 92% of the highest growth companies actively used strategic alliances as part of their company growth strategy.

For the top performers, alliance sourced revenue was a relatively small portion of overall revenue, but grew 23% from the prior year. The research found that strategic alliances and partnerships require ramp up time for on-boarding, culture alignment and collaboration, but once successful, show the potential to increase total annual revenue growth by 2.4 to 5.9 percentage points and EBIT margins by 2.7 to 6.7 percentage points.

Companies that realized the highest revenue growth assembled a combination of the 9 most impactful revenue growth programs.

Each of these 9 programs may be replicated using evidence-based best practices. A single best practice will deliver incremental revenue growth. A collection will deliver exponentially more.

The Life Sciences Growth Formula

The Johnny Grow Life Sciences Growth Formula is a proprietary 3-step model that brings simplicity and data-driven direction to systemically scale company revenues.

There are dozens of things you can do to grow revenues and every one of them delivers a different result. Executives don't want to experiment over extended periods to figure out what works. They want to quickly know the shortest route to revenue maximization.

The Growth Formula models, forecasts and compares best practices and financial levers to quickly prioritize those that maximize growth. It's a precision approach and alternative to pursuing company growth by investing in hopeful explorations.

Company Growth Formula

Here's how it works.

We start with Predictive Revenue Analytics (PRA), which are pro forma financial models that forecast the revenue uplift from each of the top 9 revenue growth best practices.

Using predictive analytics to measure the financial impact from each best practice, as well as combinations of best practices, allows management to compare and rank them so that the company can select those that deliver the maximum revenue in the least time, cost and risk.

Company Growth Formula Predictive Model

We then move from precision planning to prescriptive execution with a Revenue Growth Playbook. Plays provide guidance or operational instruction for revenue growth best practices. Many times, they are execution plans with sequenced activities, progress milestones, phase gates, performance metrics and exit criteria. Other times they are brief but pointed recommendations such as next best action.

Best Practices Blueprint

We then apply Growth Analytics to measure progress and flag variances in need of swift remediation.

We use performance dashboards to display the most important metrics in an easy to consume visual interface. The dashboards prioritize role-based information to show what should be done first, and then next, and so on. They identify variances and trouble spots in real-time so managers can quickly intervene with timely course corrections. 

Sales Dashboard

Most reporting displays historical data. Better reporting shifts from lagging to leading indicators. And the best reporting enables metrics to be interactive, so staff can perform What-If modeling and scenario planning.

Growing Your Life Science Business is our Business

Our core competency is helping clients implement best practices to accelerate revenues and profits.

Our evidence-based revenue growth best practices are validated by industry research, include prescriptive frameworks, have purpose-built measurement systems and leverage technology automation.

To de-risk our programs, our services include program management, organizational change management and governance.

How to Grow a Life Sciences Company

Johnny Grow Company Growth Solutions

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Company Growth Strategy

Companies with data-driven growth strategies achieve 2.8 times higher annual sales growth than those without

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RevOps

SiriusDecisions reports organizations that deployed RevOps grew revenue three times faster than those that didn't

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Corporate Culture

Build a growth culture to drive double digit improvements to labor productivity, customer engagement and sales growth

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Innovation & Distruption

Create competitive differentiation that increases margins, accelerates revenues and grows companies

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Customer Growth Strategies

Increase customer expansion and retention; two factors that deliver significant and sustained sales growth

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Rev Tech Stack

Growth technologies and organized RevTech stacks achieve double digit ROI and scale company growth

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Process Automation

Simplify, streamline and automate business processes to improve productivity, lower cost and drive operational excellence

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M&A

Use M&A to accelerate organic growth, leapfrog competitors, create new revenue streams and quickly boost top line revenues

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Sustainability Programs

Smart sustainability programs lower carbon emissions, reduce costs and grow revenues

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Learn What the Highest Growth Companies do Differently

The Business Growth Report surfaced and ranked the growth strategies, methods and technologies which delivered the biggest impact to company growth.

The report identifies what the highest growth companies do better and differently than all other lower growth companies – and how they do it.

It provides data-driven findings and insights that can be replicated by others.

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Visit the Life Sciences Insights Hub for research findings, best practices and enabling technologies