Business development as a strategic capability in pharma

By Dr Carlos Velez, expert trainer of Business Development & Licensing Course For Pharma & Biotech 
and The AI for Pharma Business Development & Licensing Course

Innovation starts in the lab, but success depends on many factors: scientific excellence, execution, funding, and timing among them.

One capability that connects these elements and helps turn innovation into measurable value is business development and licensing (BD&L).
 

💼 Why Business Development Is More Than Deal-Making

BD&L is often viewed as a final step in the process: the team that negotiates, signs agreements, and announces partnerships.

In reality, BD&L is a strategic capability that links science, finance, and corporate vision. It shapes how companies decide which assets to advance, who to partner with, and how to balance risk and reward across the portfolio.

When applied strategically, BD&L brings together diverse perspectives to answer key questions:

• Which in-licensing opportunities fit our long-term corporate growth strategy?
• Which in-licensing opportunities fit our scientific, clinical, and commercial strengths?
• How should we prioritise internal versus external innovation?
• What structures create value for both parties over the long term?
   

🗂️ The Four Dimensions of a Strategic BD&L Capability

A mature BD&L capability blends multiple disciplines:

1. Scientific credibility – Deep understanding of differentiation and development potential.
2. Financial literacy – Translating risk and timelines into defensible valuation models.
3. Strategic alignment – Ensuring partnerships fit corporate priorities and portfolio strategy.
4. Operational and legal design – Creating agreements that protect and grow value.

These elements rely on collaboration across functions, from R&D and finance to commercial, legal, and leadership teams.
 

🌐 Why BD&L Capability Matters Across Pharma and Biotech

No company succeeds on science alone.

As the industry becomes more interconnected, understanding the principles of business development helps teams across roles make better, faster, and more strategic decisions.

Building internal BD&L capabilities strengthens collaboration, enhances valuation discussions, and increases readiness for future opportunities.