Applying Competitive Intelligence Where Competitive Landscapes are Shrinking

Biotech and pharma are no strangers to understanding the risks associated with innovation. In fact, their very existences are defined by feeding rich pipelines of developing new targets and thus, birthing new breeds of therapeutic classes and competitors.

However, as consolidations and withdrawals accelerate and regulatory and financial pressures mount, we are witnessing competitive landscapes narrowing in some categories. In several specialized therapeutic fields, such as those involving complex or costly-to-treat pathologies, the number of active developers has become increasingly unstable, and in many cases, is on the decline.

These forces create both challenges and opportunities. Thus, many are asking the question, “How useful is Competitive Intelligence when the list of viable competitors seems to be shrinking?”

At a high level, these forces, either alone or in combination, may be among the driving forces in current market fluctuations, fueling uncertainty and volatility. Furthermore, they contribute to more noticeable ‘tap outs’, leaving a tighter field of active competitors.

Understanding External and Global Factors

Global dynamics are reshaping the industry in ways that demand sharper intelligence gathering. Though the ‘n’ number of deals and alliances appears stable, wallets have tightened, making it harder for smaller biotech firms to secure, advance, or even thrive, with limited funding. We are also seeing VCs and institutional investors increasingly cautious, favoring late-stage companies with proven pipelines over early-stage innovators. This has led to fewer players entering the market and more acquisitions of promising startups being scooped up by big pharma.

Concurrently, international competition is intensifying. Emerging markets, particularly in Asia, are investing heavily in biotech infrastructure and talent. Governments in these regions see biotech as a strategic sector, offering subsidies and incentives to accelerate growth. For US and EU firms, this means that CI must extend beyond domestic rivals to include global entrants poised to disrupt traditional markets with lower-cost production or the next wave of novel and promising therapies.

Supply chain vulnerabilities also play a role. The pandemic revealed the fragility of global pharma supply chains, prompting governments and companies alike to rethink sourcing strategies. CI teams must remain abreast of geopolitical risks, trade policies, and manufacturing shifts to anticipate disruptions that could affect drug availability or pricing.

Impact of US Policy Dynamics

Domestic policy changes in the United States are adding another layer of complexity. Several initiatives have recently emerged directly affecting pricing, distribution, and market access.

• Most Favored Nation (MFN) pricing models: Intending to bring US drug prices in alignment with those in other developed countries, these models create uncertainty around revenue projections, forcing CI and strategy teams to model scenarios where international benchmarks dictate domestic pricing.

  
  

• TrumpRx transparency initiatives: Policies introduced to increase transparency and reduce drug costs and promote affordability remain a central theme in US healthcare policy. CI professionals are tasked with tracking how these initiatives evolve and assessing impact on margins, reimbursement strategies, and ultimately, overall competitive positioning.

  
  

• Direct-to-Consumer (DTC) medication access measures: Extending the transparency narrative also involves evaluating how companies communicate with patients. CI teams must examine how competitors are adapting their messaging, digital strategies, and patient engagement models to comply with new rules while maintaining brand-centricity.

  
  

• Scrutiny of Pharmacy Benefit Managers (PBMs): PBMs have long been influential in determining drug access and pricing. Recent investigations and policy debates have put PBMs under an unwanted spotlight, raising questions about their role in cost structures. For pharma companies, understanding how PBM practices may shift is critical to anticipating changes in distribution and reimbursement.

Applying CI in Contracting Markets

With fewer competitors, it may be tempting to assume that market dynamics are simpler. In reality, contraction often intensifies competition among the remaining players. Larger firms with deeper resources could position to dominate but may also face heightened scrutiny from regulators and the proverbial ‘court of public opinion’. The smaller firms that survive must be nimble, be open to embracing the benefits of leveraging partnerships, and skillfully

showcase niche innovations as meaningful differentiators to carve out a space amid ever-evolving competitive circumstances.

CI in this environment will require a multi-dimensional approach:

• Market monitoring: Tracking not only direct competitors but also adjacent industries, such as digital health and diagnostics. These may offer not only hidden opportunities to offer additional value propositions, but also uncover disruptive alternatives, the ‘hidden competitor sets’.

  
  

• Policy analysis: Anticipating regulatory shifts and modeling impacts on pricing, reimbursement, and market access.

  
  

• Global benchmarking: Comparing strategies across regions to identify best practices and potential threats from international entrants.

  
  

• Scenario planning: Preparing for multiple futures, from aggressive cost-containment policies to breakthroughs in personalized medicine. The results of scenario planning exercises or ‘workshopping’ multiple scenarios may be crucial contributions for understanding risk mitigation, contingency planning, and future tactical implementations.

The sector is amidst a period of contraction and transformation. External global factors, combined with evolving US policy dynamics, are reshaping many competitive landscapes. For companies seeking to thrive, CI must be embedded into strategic decision-making. By systematically monitoring markets, policies, and competitors, organizations can more proactively anticipate change rather than react to it. In a world where the number of competitors may be shrinking, the intensity of competition is still ever-present. Those who understand how to leverage the power of CI will be best positioned to lead.

Let Fletcher Help You Put Competitive Intelligence to Work.

To explore opportunities to elevate your strategic advantage in today’s market, contact Tina Witte, SVP of Life Sciences. Her team offers deep expertise across CI, MI, Strategic Decision Support, and Life Sciences, enabling organizations to anticipate change, refine decision‑making, and execute with confidence.