Background

A European pharmaceutical company was evaluating options to strengthen its mid- to long-term pipeline in a fast-evolving therapeutic area. While the company had established R&D capabilities, leadership sought an objective assessment of whether to prioritize internal development or pursue external innovation through partnerships and acquisitions. Larka was engaged for an 8-week assessment work.

Our approach

We first assessed the client’s internal ability to build new programs, focusing on scientific expertise, development infrastructure, and time-to-clinic benchmarks. In parallel, we conducted targeted scouting to identify external clinical and preclinical assets aligned with the company’s ambition, evaluating their innovation potential, licensing attractiveness, and overall strategic complementarity.

To enable objective comparison, we developed financial models capturing cost, risk, and ROI profiles across options — including R&D investment needs, time-to-milestone and expected NPV. Scenario-based analysis then stress-tested multiple strategies, from full internal build-up to co-development, licensing, or outright acquisition.

Outcome

The client adopted a hybrid strategy: launching an internal preclinical program in one indication while securing an exclusive license for a clinical-stage asset in a complementary area. This dual-track approach accelerated pipeline expansion, balanced risk exposure, and optimized resource deployment — strengthening the company’s long-term position while maintaining strategic flexibility.