Cortellis Competitive Intelligence

Meritz Securities Co. Ltd.How one sell-side analyst tracks biopharma's ever-changing market dynamics to best serve his customers

When it comes to forecasting a drug’s market potential, "it’s important to be balanced between qualitative and quantitative analysis," says Seoul-based analyst Lee Tae-Young.

The biopharma market is ever-changing, and a host of powerful influences can affect a drug’s potential performance such as regulations, scientific advancements, clinical developments, changes in healthcare and unmet medical needs and a competitor’s strategic moves.

Few in the market follow the impact of these changes across multiple dimensions more profoundly than a sell-side analyst like Lee Tae-Young, of Meritz Securities Co. Ltd.

Based in Seoul, Tae-Young’s role is to evaluate publicly traded companies in the biopharmaceutical industry. The clients Tae-Young serves are mostly fund managers. He conducts regular briefings with these customers, presenting details in one-on-one meetings on market updates or drugs of interest. He also publishes industry reports on a quarterly basis.

To do his job well, he has to stay attuned to market dynamics based on pipelines, company portfolio development around the world, deal-making, terminations and much more. Getting it right is critical, he said. It helps him deliver a strong performance and develop solid relationships with clients, which in turn will help build a better reputation in the market.

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A Cortellis SWOT analysis is an efficient tool that helps him develop a balanced view of the drug’s market position, Tae-Young said. The development profiles and status serve as a reference to understand the drug’s development history and commercialization strategy including partnerships and potential related indications. He can use Cortellis to gather insights as he prepares for meetings with company management.

He said he finds the conference coverage in Cortellis deeply valuable for keeping up-to-date with market information and follows closely reports from meetings such as BIO International and the American Society of Clinical Oncology.

The Cortellis drug report provides regulatory updates, as well, which he finds useful, including the status, profiles and each country’s regulatory designation. He referenced China here as a good example, where the CFDA has enacted dramatic regulatory changes recently to improve the quality of drugs (both generic and innovative) to boost the access that Chinese patients have to care.

My investment reference is Cortellis. I cannot help logging in to Cortellis

more than three to four times in a day.”

His work is to identify what similar or different targets are related, how the competition will affect each drug further.

Which stocks will increase in value?

Tae-Young cited Alzheimer’s disease (AD) as a good example of the kinds of market questions that arise. There are high unmet medical needs associated with AD, as well as limited clinical scientific success. But in July 2018, the market saw Eisai and Biogen’s stock prices jump 20% each, mainly due to positive clinical phase II results in AD.

“When this kind of news comes out, many clients, i.e., fund managers, ask how it will change the market outlook and which companies’ stock will be affected, and what to buy,” Tae-Young said. His challenge is to identify what similar or different targets are related, how the competition will affect each drug further. He is then able to suggest, based on this research and evaluation, which stocks he projects will increase in value.

“When it comes to the potential of a drug, it is very important to understand the disease landscape and target, standard of care, companies involved in the collaboration like development partners and distribution/promotion/marketing partners,” he said. “Especially, when it comes to ‘forecast of drug potential’ it is important to be balanced between qualitative and quantitative analysis.”

A biopharma company’s investor relations (IR) team may share key aspects of a targeted drug but to develop a comprehensive view of the competitive landscape, analysts must combine the company’s perspective with their own understanding of market trends.

He finds the sales forecasts and SWOT analyses indispensable

Tae-Young turns to the drug reports in Cortellis Competitive Intelligence to stay plugged in. He finds the sales forecasts and the SWOT analyses that he gets via Cortellis to be indispensable. The sales forecasts consolidate a number of analysts’ views on what they expect in the way of drug sales in the next five years while the SWOT analyses describe clinical potential, competitive drugs, unmet medical need and any potential patent expiry issues.

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Tae-Young also takes advantage of the Cortellis Competitive Landscape Viewer (CLV), which helps him save time with immediate market assessments and analysis. He will frequently share CLV screen shots on his iPad during presentations to fund managers. He responds to calls from clients to check out how “Drug A” looks or the likely potential of “Drug B.” CLV is his best tool to catch a quick analysis of the market, he said.

One fund manager asked recently about Eylea, from Regeneron, he noted. Using CLV, he could quickly come up with a summary of Eylea as well as an analysis of its competitors, including any biosimilars. Tae-Young said he likes that Cortellis includes biosimilars so that he is able to perform a full analysis via one platform.

The big picture

Tae-Young said he has used Cortellis now for three years. Prior to turning to Cortellis, he mainly used Google to search for market information. But gathering intelligence via internet searches made it difficult for him to fully understand the competitive landscape or place his collected data into the context of the market’s dynamics. With Cortellis, he is able to develop a balanced view of the market landscape quickly and comprehensively.

While Tae-Young said he finds the platform well designed and easy to use, he acknowledged that he owes it to his customers to consult other sources besides Cortellis, including real-time data and public repositories of information. A precise forecast is made from multi-dimensional analysis, he said. He always turns to Cortellis with its depth of information, however, to provide “the big picture.”

The Competitive Landscape Viewer enables an at-a-glance view of the Alzheimer’s landscape globally. (Source: Cortellis Competitive Intelligence)

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