When working with life science companies, we often find that they have great technology but can underestimate the importance and challenge of getting that innovation into the hands of customers.
Significant time and capital are rightly invested in R&D to secure long-term growth. However, even the most scientifically robust product will fail commercially without a clear, well-executed go-to-market strategy. Successful life science companies invest just as deliberately in commercialisation, customer engagement, and market access as they do in product development.
At its core, go-to-market in life sciences is about choosing the right routes to reach customers, supporting them effectively, and protecting long-term value. Most life science organisations rely on a combination of three primary go-to-market channels:
- Distribution
- OEM (Original Equipment Manufacturer)
- Direct-to-customer sales
Each route offers distinct advantages and disadvantages, which life science companies must carefully evaluate.
Direct Sales: Control, Margin, and Brand Awareness
Selling directly to end users offers the greatest level of control over pricing, customer relationships, and brand perception, but it also requires the highest level of investment.
The complexity of a direct sales model depends heavily on the nature of the product and the customer base. In the life sciences, direct sales are typically segmented by customer type, such as academic research, biotech and biopharma organisations, the IVD industry, or clinical labs. Understanding how each customer group uses your products and the specific problems they are trying to solve is essential, as this insight will directly inform marketing messages.
Success in direct sales depends on:
- Strong marketing, messaging and brand awareness
- Responsive commercial and technical customer support
- Reliable delivery times and post-sale service
While margins are typically higher, direct sales require sustained investment in people, systems, and infrastructure.
Many organisations adopt a hybrid approach, combining direct sales, usually in their home territory with OEM and distribution. However, this must be managed carefully to avoid internal competition, particularly when OEM partners relabel products under stronger, more established brands.
Key Learning Direct sales build long-term value, but only when supported by the right commercial capabilities.
Distribution: Scale and Market Access, If Managed Properly
Building a distribution network is often the first step for companies seeking international reach.
Distribution is not a “set and forget” model. While distributors provide access to markets that are difficult or costly to reach directly, they require ongoing engagement, support, and training to be effective.
Key considerations for distribution success:
- Multiple agreement structures can exist, each with different commercial and operational implications (PSL explores these in detail in our dedicated distributor agreements blog)
- Distributors typically expect a 35%+ discount off list price as a standard margin
- Distributor performance depends heavily on:
- Product training
- Technical support
- Clear articulation of the value proposition and target market
A well-managed distributor network reduces the need for costly field sales teams and enables faster expansion into new territories. However, distributors will only actively market products they understand and believe they can sell, therefore making a time investment in education and relationship management is essential.
Key learning Distribution can be a powerful growth lever, but only if treated as a strategic partnership rather than a transactional channel.
OEM: Rapid Revenue, Limited Brand Control
OEM relationships can accelerate revenue growth and offer a relatively fast, cost-effective route to market. However, they come with strategic compromises that senior leaders must consider carefully.
Advantages:
- Faster market entry
- Lower commercial infrastructure costs
- Predictable revenue streams
Risks:
- Minimal visibility or awareness of your own brand
- Long-term erosion of brand equity as products become associated with OEM partners
- Dependency on partner strategy, priorities, and market direction
- Loss of control of product narrative and customer
Companies selling purely via OEM are exposed to risk if partners pivot away from specific technologies or change sourcing strategies. For this reason, we strongly recommend working with a broad OEM partner base rather than relying on a small number of large partners.
To maximise success in OEM relationships:
- Ensure all product documentation is up to date (datasheets, SDS, references)
- Establish a clear OEM pricing policy, typically as a discount off list price
- Be prepared for volume-based discounts or end-of-year rebate structures
- Develop a personal relationship with your OEM partners, communicate and support them
PSL regularly reviews and advises on OEM agreements to ensure commercial terms remain sustainable and aligned with long-term strategy.
Key learning: OEM can drive short-term growth, but without a broader go-to-market strategy, it limits brand value and strategic independence.
Choosing the Right Go-to-Market Mix
There is no single “correct” go-to-market model in life sciences. The optimal approach depends on:
- Product complexity and validation data
- Target customer profile
- Geographic reach
- Margin expectations
- Long-term brand ambitions
What matters most is intentional design, supported by realistic pricing models and active channel management. PSL works with life science and biotech leadership teams to:
- Design and optimise go-to-market strategies
- Evaluate OEM, distributor, and direct sales models
- Identify and introduce suitable distribution partners by territory
- Align pricing, margin, and long-term growth objectives
If you are reviewing your current route to market or planning your next phase of growth, we would be happy to support you with tailored, strategic advice.
Get in touch with Tim Bernard or Sian Bolitho to discuss how we can help you turn scientific innovation into commercial success.
