Background

A global pharmaceutical company was preparing regulatory submission for a late-stage clinical asset initially prioritized as a future launch. However, shifts in R&D focus and limited commercialization capacity left the asset misaligned with long-term strategy and resourcing. The client needed to decide whether to pursue internal commercialization or preserve value through divestment and engaged Larka for a focused six-week exercise to determine which path should be chosen.

Our approach

We conducted a comprehensive strategic assessment of the asset, combining clinical performance analysis, market opportunity evaluation, and portfolio alignment diagnostics. Although results were clinically positive, the asset’s therapeutic area no longer fit the company’s growth priorities and internal bandwidth was constrained.

To support decision-making, we developed scenario analyses comparing internal launch versus out-licensing or divestment. We profiled potential partners by therapeutic expertise, commercialization capabilities, and geographic complementarity, ensuring fit with the asset’s requirements. Finally, we supported internal alignment by framing the value narrative, preparing stakeholder materials, and designing a pragmatic, low-risk execution roadmap.

Outcome

The client out-licensed the asset to a partner with strong launch capabilities and deep presence in the target therapeutic area. The deal structure included upfront and milestone-based payments, enabling resource reallocation while preserving upside potential. This divestment reduced portfolio complexity, freed internal capacity, and ensured the product would be developed and launched by a partner better positioned to maximize market value.