Understand what you’re buying
Biotech and life sciences companies operate in one of the most complex and regulated industries in the world. From managing R&D spend and clinical trial costs to navigating commercialization and compliance, the need for a scalable, cloud-based ERP system like NetSuite is clear. But selecting and implementing NetSuite is more than an IT or Finance decision—it requires a plan that strategically aligns your company’s resources with both near-term and long-term goals.
Whether you’re a pre-revenue biotech focused on discovery and fundraising or a commercial-stage life sciences company scaling operations and revenue, this NetSuite buyer’s guide outlines the key considerations to ensure your NetSuite journey is successful.
1. Determine your project’s objectives and build a business case
Start by aligning ERP goals with your business lifecycle. Pre-revenue biotech companies often prioritize establishing the financial foundation for core accounting processes, controls and compliance, and clinical trials tracking. Commercial-stage companies instead often focus on supply chain and inventory management, revenue recognition, and automation to scale.
A strong business case should reflect your strategic priorities, whether it’s preparing for IPO, supporting commercialization, or enabling global expansion. Quantifying ROI can be challenging, but consider key areas such as operational efficiencies via automation, deferring hiring, consolidating systems, and costs.
Tip: Include stakeholders from finance, R&D, and operations to ensure the business case reflects cross-functional needs.
2. Define current and future state requirements
Document your current processes but also anticipate future needs. Pre-revenue companies may have lean teams and manual processes they’re trying to automate, while commercial-stage firms require robust capabilities for supply chain, manufacturing, and multi-entity consolidation.
Consider how your requirements will evolve over the next three to five years. A common approach is to create an ERP roadmap for your needs; for example, pre-revenue companies may prioritize core accounting and clinical trial tracking for initial go-live, with a plan to include supply chain and inventory management in future phases. This future-proofing ensures NetSuite remains a strategic asset as your company grows.
Tip: Use scenario planning to map out requirements for key milestones like IND filing, Phase III trials, or product launch.
3. Validate product fit and choose the right edition/modules
NetSuite offers industry-specific editions and modules that can be tailored for specific biotech needs. For example:
- Pre-revenue biotech firms may benefit from NetSuite Financials First, with modules for GL, AP/AR, and budgeting.
- Commercial-stage companies may require Advanced Revenue Management, Work Orders & Assemblies, WIP & Routing, Inventory, and Multi-Book Accounting to support GAAP and IFRS compliance.
The key is to validate that the edition and modules align with your operational complexity and regulatory requirements.
Tip: Ask for demos that reflect biotech-specific workflows like clinical trial expense tracking, COGS allocation, or Work Order management.
4. Plan the implementation strategically
ERP implementations in biotech must prioritize a scope for initial go-live that addresses short-term needs but still considers long-term objectives. This should include functional processes and modules, as well as data migration, training, and any integrations. Define a phased approach that aligns with your overall ERP roadmap with a timeline that takes into consideration other competing business priorities (i.e. clinical trial launches, financial audits, or fiscal year-end).
Implementing NetSuite requires a significant investment of people’s time and resources; therefore, having a strong plan is paramount for success.
Tip: To mitigate risk, determine any blackout periods where the project team will be unavailable, and factor this into the overall project plan.
5. Find the right implementation partner
Biotech companies benefit from partners who understand the nuances of the industry, such as clinical trial management, regulatory compliance, and spend management. Look for NetSuite partners with life sciences experience, a proven methodology, and a collaborative approach. A good partner’s governance model should include:
- Project management
- Executive sponsorship
- Communication protocols to ensure all resources are aligned
Tip: Ask for references from similar-stage biotech clients and inquire about their experience helping biotech customers achieve regulatory compliance.
6. Negotiate and prepare for implementation
Understand NetSuite’s licensing model, renewal terms, and support tiers. Negotiate for scalability, especially if you anticipate rapid growth, or M&A activity. Find an experienced NetSuite buyer or consultant who can offer insight into the right pricing and packaging for your current and future needs.
Tip: Align your contract length with your long-term strategy—an ERP is a long-term investment; therefore, locking in a long contract can help mitigate renewal price increases.
Final thoughts
NetSuite offers a powerful platform for biotech and life sciences companies to manage complexity, scale efficiently, and stay compliant. But success depends on thoughtful planning, industry-specific knowledge, and the right partner.
Whether you’re in early-stage R&D or scaling commercial operations, a strategic approach to ERP selection and implementation will position your company for long-term success.
For more information on NetSuite implementations, click here.
