"So, how do you intend to sell your first unit?" The power of first-unit clarity in the quest for commercial success.

I remember the first time I was on the receiving end of the question, "How will you sell your FIRST unit?" The question contained equivalent measures of simplicity and power. The reply would reveal the level of learning and rigor applied to the upcoming launch and would determine the level of trust secured from the audience of investors. For teams preparing for a commercial launch, the question requires shared exploration and inspection and instills shared confidence and commitment.

Well played, questioner.

For pre- and early-commercial stage life science companies, clarity with respect to mission and priorities is a common attribute of teams that ignite and sustain the effort required to secure a successful product launch. Of course, this does not represent a revelation. Still, the journey to product introduction can be long. The journey can become a grind. And, as the journey unfolds, it is not uncommon for teams to reset with respect to the promise of the product and the priorities that will define each phase of the commercial development process. Otherwise, the leader and team risk falling victim to a very potent villain…distraction.

Distraction can come in many forms. Distraction can show up as an adjacent opportunity that is better positioned later in the portfolio launch sequence but is now the “shiny object” that must be prioritized. Distraction can appear in the form of over burdening the early pre-commercial phase by inviting “tomorrow’s priorities” into today’s conversation. Misplaced pressure is a distraction. An example of pressure that can be misplaced is the pressure that commercial leaders can feel to represent a broader, hence larger, opportunity to early stage investors.

A commercial pathway defined by distraction leads almost exclusively to a dead end. Let’s take a moment to highlight a couple warning signs that indicate a leader or team is suffering from distraction.

The “Go BIG or Go Home” distraction. This mindset can create particularly difficult challenges for medical products that must be donned by the patient and integrated into the patient’s lifestyle. For example, consider the range of product specification nuances that must be considered with assistive device products. Assistive devices for either upper or lower extremities can be aimed, in some cases, across a broad range of orthopedic and neurological conditions.

Let’s focus on neurological conditions, including stroke, cerebral palsy, spinal cord injury, multiple sclerosis, and muscular dystrophy. Each represents a worthy condition target. But, consider the implications for an engineering team with a unique technology that plans to address each of these conditions at launch. Ultimately, the engineering team will be forced to intentionally or unintentionally compromise critical priorities such as material and component sourcing, addressing the size and shape range for the target audience with precision, accounting for comorbidities common to the audience, building prototypes, testing, and fulfilling GMP requirements. In this case, going too big, too early can translate to a suboptimal product fit and performance for the patient, leading to frustratingly slow adoption and a lack of clinician support during the critical launch and early post-launch phases. When this happens, going big can translate to going home…early. 

The “We can do that too” distraction. Achieving significant commercial competency across the areas that support a medical product is a process, even for the most mature organization. For example, at DJO, we had significant, world-class competency in sourcing, manufacturing, reimbursement, professional practice enhancement, and brand identity, particularly in orthopedics and physical therapy. DJO was also more than 30 years old at the time. And, despite the mature age of the organization, DJO was still maturing its efforts in health economics and outcomes research, marketing, and sales force effectiveness. A mature company is in a better position to ask, should we be doing that too?

For, pre-commercial stage companies, the “we can do that too” distraction can result in a leader or leadership team diverting their eyes from the most critical foundation for an emerging commercial entity’s success…getting the product right for the initial audience. Leaders exhibiting the “We can do that” distraction can often be found dedicating hours to tactical decisions that should be reserved for later in the pre-commercial planning process. This is the act of inviting tomorrow’s priorities into today’s conversation. Depending on the time required to develop the product, examples of “tomorrow priorities” include attending to the sales force structure, sales operations support, or reimbursement infrastructure.

Leaders can get in front of the “We can do that too” distraction by identifying opportunities to outsource specific competencies (i.e. reimbursement operations, marketing automation for consumer engagement) in the launch and early post-launch periods to retain focus on the limited competency set that is required for a successful launch and adoption trajectory. It is also fair to say that some acquired competencies are in the interest of the brand’s launch due to the expertise that is secured through third parties. Investors are interested in seeing the team and the product radically change a clinical protocol and seize its target market. The early investor in your team, your solution, and your market and is not investing in commercial competencies that can be performed outside the organization (perhaps at a higher level and with less risk to the operating budget). Some operational competencies can be matured later in the commercial process.

Clarity of purpose is the great friend to teams seeking to introduce a novel therapy, penetrate a market, and radically advance the treatment of a disease or condition. But, how do you arrive at clarity? Clarity can be ignited by the simple question: How do you intend to sell your first unit? Seeking and negotiating “first-unit clarity” is an extremely powerful concept and a productive process for commercial leaders and teams. First-unit clarity delivers the team to shared commitment with respect to their product, their initial market, and the commercial path. Consider the questions that are contained within “How do you intend to sell the first unit?”

Who will buy the first unit? Which patient community will they represent? (Consumer persona)

Why will this person be the initial purchaser?

What will they buy? (Product form)

What trigger will motivate a purchase? Will the purchase be self-directed or influenced by a clinical professional? How will the purchaser internally process or validate the influencer? (Purchase triggers)

What will they pay? How will they pay for it? (Self-payment, co-payment, reimbursement)

What will motivate them to stay engaged with the product? What are the ongoing (longitudinal) triggers that will motivate adherence?

How organized is the professional and/or patient community that the initial purchaser represents? (Quite often, user candidates supported by smaller, more organized professional and patient communities can provide a more productive launch audience due to accelerated viral adoption and increased return on the marketing investment.)

Commercial leaders can expect investors to ask the first unit question. Commercial leaders who are immersed in the promise and potential of their team and their product will welcome it. These leaders will inspire and benefit from shared commitment to the team’s commercial path. Securing first-unit clarity can be the key that delivers a team to purpose, productivity, and passion.

Hix Group LLC, based in Birmingham, Alabama, works with investors and commercial leaders in life sciences to assess, map, and execute the commercial competencies required to win the launch, seize markets, and sustain advantage.