Thought Leadership
Growth is an exercise in saying no
A growing portfolio creates a deceptively simple question: where should the organization put its attention?
At Merz Therapeutics, that question is rarely answered by a fixed formula. Priorities depend on an asset’s stage of lifecycle, its role in the portfolio and where the greatest opportunities, or risks, lie. My challenge as Head of Global Asset & Commercial Strategy is to ensure that each asset gets the attention it needs, while recognizing that different assets require different levels of financial investment and organizational capacity. Striking that balance is at the heart of portfolio management.
Priorities depend on an asset’s stage of lifecycle, its role in the portfolio and where the greatest opportunities, or risks, lie.
Therapeutic focus creates
speed, not limitation
01
One of the greatest advantages an organization can have, is clarity. When you know where you are going, every opportunity becomes easier to evaluate.
For us, that clarity comes from our commitment to specialty neurology and neurology-driven pain. It guides where we invest, where we build capabilities and where we choose to spend our most limited resource: attention. As new assets, partnerships and technologies compete for leadership focus, scientific expertise and organizational capacity, our strategy exists to ensure those resources are directed where they can make the greatest difference.
I’ve often used the analogy of attending too many parties. If you make an appearance at every party, you are unlikely to leave a lasting impression anywhere. Organizations face the same risk. Pursuing too many therapeutic areas can dilute expertise, stretch resources and ultimately make it harder to create meaningful impact.
That’s why, at Merz Therapeutics, growth begins with knowing which parts of the portfolio deserve our focus.
Neurology and pain assets receive first priority because they sit at the heart of our strategic focus. Beyond that, we look closely at where there is a near-term growth inflection point, whether through a new launch, an expanded indication or a change in how an asset can be delivered. At the same time, our heritage assets still require attention because they contribute significantly to the business. The balance is to protect that contribution without using more organizational focus than necessary.
We have had instances, for example, where an unexpected acceleration in a development program brought a launch forward. That immediately changed its position in the global portfolio and made it a much greater priority for the global team. The lesson is straightforward: prioritization has to remain dynamic rather than becoming a decision made once and left untouched.
Pursuing too many therapeutic areas can dilute expertise, stretch resources and ultimately make it harder to create meaningful impact.
Portfolio completeness
trumps portfolio diversification
02
Finding an opportunity that fits strategically is only the first step. The next question is more important: does it strengthen the portfolio as a whole?
A portfolio should never become a collection of individual assets. It should become something greater than the sum of its parts.
I’ve always believed in building portfolios logically, one step at a time, brick by brick. The strongest portfolios are rarely assembled through dramatic leaps into entirely new areas. They evolve through deliberate progression, where each addition builds naturally on the capabilities and experience already in place.
That philosophy has shaped how we expand our own portfolio. Success in one disease area creates the knowledge, relationships and scientific understanding that can open the door to adjacent opportunities. Growth becomes cumulative rather than opportunistic, with each addition reinforcing what came before it.
For me, defining the value of a new, potential asset comes down to several factors: a clear patient need, meaningful market potential and a strong business case. These will not always align perfectly. When they diverge, we may consider other intangible aspects, including our ethical responsibilities and the reputation we want to build as an organization.
We have, for example, supported drug development in an area where the potential patient population was relatively limited, because we felt a moral obligation to make this treatment option available to a particularly vulnerable group. The commercial opportunity alone would not have justified the decision — but the broader responsibility we felt towards those patients did.
That is an important distinction in portfolio thinking. Not every decision can be reduced to market size or financial return. A portfolio also reflects the kind of organization we want to be and the areas in which we believe we can make a meaningful difference.
A portfolio should never become a collection of individual assets. It should become something greater than the sum of its parts.
Discipline beats excitement
03Innovation is exciting by nature. New data can generate enormous enthusiasm, and breakthrough science understandably creates momentum. But excitement should never replace objective evaluation.
Promising science and ambitious forecasts all have their place, but they must withstand rigorous scrutiny. What would need to change for an opportunity to deliver its expected value? What assumptions are we making? What could change before the opportunity reaches the next stage? These questions are often more valuable than the initial buzz surrounding an opportunity.
The challenge becomes even greater when several assets require the same people, expertise or organizational capacity at the same time. There is no formula for resolving those situations. They require cross-functional discussion at the executive leadership level, with different perspectives brought into the conversation.
Ultimately, we think about where to place focus — and what to deliberately let go.
The strength of our decisions lies in making those choices openly and collectively. Different functions bring different views, and those perspectives matter when deciding where the organization can have the greatest impact with the resources available.
Promising science and ambitious forecasts all have their place, but they must withstand rigorous scrutiny.
Growth has to match
organizational capabilities
04
One lesson I’ve learned recently is that organizations can outgrow themselves.
Every acquisition, partnership or launch demands time, integration and sustained attention. Growth that exceeds an organization’s capacity eventually creates complexity instead of value. That is why scale is never the objective. The objective is readiness: having the capabilities, resources and ownership needed to continue executing at a high level, before moving on to the next opportunity.
The same principle applies to how global and local teams work together. The global organization leads the overarching strategy, value dossier and brand narrative, while local teams bring the understanding of individual healthcare systems, regulations and market dynamics that is essential for execution. Regions are involved from the beginning, helping to co-create and align the strategy before rollout. Where regulation, culture or a unique opportunity justify it, local deviations are part of the model.
Looking ahead, I believe these characteristics will define successful pharmaceutical organizations. Innovation will continue to accelerate, creating more opportunities than any company can realistically pursue. The organizations that succeed will be those with the discipline to stay focused, the judgment to remain objective and the patience to grow at a pace they can sustain.
If there is one philosophy that continues to guide my thinking, it can be summed up in three simple principles: purpose, right size and right pace.
Purpose means having absolute clarity about where we can make the greatest difference for patients and allowing that conviction to guide our decisions.
Right size means building a portfolio that strengthens the organization rather than stretching it beyond its capabilities.
Right pace means recognizing that sustainable growth is cumulative. It is earned one thoughtful decision at a time, with sufficient consideration for how new capabilities need to evolve and integrate within the business.
In an industry that often celebrates speed and scale, we are proud to grow deliberately, remain true to our strategy and have the confidence to say no when everyone else is saying yes.
In the years ahead, opportunities will only become more abundant. Our success will not be defined by how many projects we pursue, but by having the clarity to choose the ones that move us closer to our purpose, and the discipline to leave the rest behind.
