Case study - NovAlix

Introduction 

NovAlix is a drug discovery-focused CRO that was founded in Strasbourg in 2002. It delivers comprehensive support across the entire drug development pipeline—from target validation and hit identification to hit-to-lead and preclinical evaluation. In the Japanese market, mid-sized companies in particular do not always have all their drug discovery resources in-house. Consequently, outsourcing to CROs is part of their strategy. NovAlix’s ability to tackle complex targets sets it apart from competitors, earning the trust of clients through consistently high-quality standards.  

By offering expertise at every stage of the process, NovAlix helps advance and accelerate the therapeutic potential of new drug candidates, working alongside clients to complement their internal R&D efforts. 

Why Japan? 

Japan has historically been an important market for the pharmaceutical industry, supported by a mature ecosystem. The Strasbourg-based company began exploring this market in the late 2000s, guided by President S. Jenn and CEO D. Zeyer’s intuition into its potential for business. 

Following initial success, the company engaged a local consultant, gradually building its customer base and reaching a peak in early 2020. However, as the COVID-19 pandemic unfolded, operations were significantly affected. 

The EU-Japan Centre’s Support  

After the pandemic, NovAlix returned to the Japanese market with broader ambitions. In 2023, the EU-Japan Centre provided key support, selecting the company for its Biotech business mission designed for SMEs and cluster representatives in the biotechnology field. This opportunity included participating in the one-day EU-Japan Biotech & Pharma Partnering Conference in Osaka, followed by three days of partnering sessions and a joint exhibition at BioJapan in Yokohama. 

According to A. Decayeux, Business Development Director and participant to the mission, the support of the Centre signalled to customers that NovAlix was backed and supported by institutions, thus providing recognition and trust, which is of particular importance in the Japanese market. Additionally, they shared the following experience from the mission: “We were able to move forward some discussions at the booth provided by the EU-Japan Centre, helping us  finalize a contract with a medium-sized Japanese company. We continue to work with this company to this day. So, this mission fully met our expectations after the difficult Covid years.” 

Challenges in the Japanese Market  

Although Japanese pharmaceutical companies have advanced technologies and local CROs are well established, NovAlix can offer very specific expertise, such as Cryo-EM experiments and AI-driven DNA-encoded libraries. The majority of foreign competitors operate from abroad and to stand out, NovAlix Japan KK was established during the preparation of the EU-Japan Centre mission to provide closer support and faster response times to Japanese clients. 

Advice to European SMEs 

Gaining the trust of Japanese customers involves several steps. First, communicating in Japanese matters. While it is possible to conduct business negotiations in English, having someone in the company speaking  the language fluently certainly helps. 

Moreover, attending industry events and conferences helps raise the company’s profile and is essential for networking. 

Finally, giving importance to face-to-face interactions, including informal gatherings like dinners, can further deepen relationships and build mutual confidence. In Japan, non-financial factors and genuine personal engagement can influence outcomes just as much as price. 

Text based on an interview with Alain Decayeux, Managing Director Japan & Asia Pacific, NovAlix. Participant to the 2023 Biotech mission.

December 2024