Branded Drugs Gain New Hope in Battle Against Generics

Main Category: Pharma Industry / Biotech Industry
Article Date: 11 Aug 2005 - 17:00 PDT

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More than $80 billion worth of blockbuster drugs faces patent expiration by 2008. These drugs risk losing 80% or greater market share when generic copies hit the market.

Brand managers can retain market share with advance strategic planning and lifecycle management, according to a report, "Combating Generics: Pharmaceutical Brand Defense" (http://www.PharmaGenerics.com), published by pharmaceutical business intelligence firm Cutting Edge Information.

"Combating Generics: Pharmaceutical Brand Defense" (http://www.PharmaGenerics.com) examines a variety of commercialization and lifecycle management strategies that enable product management teams to retain market share even as generic competitors launch. Each strategy -- including authorized generics, Rx-to-OTC switching, developing franchise and line extensions, and market-crossover strategies -- is explored in detail through featured industry case studies. The report examines both successful and unsuccessful examples of patent and product defense in the face of generic competition.

"With the industry developing fewer blockbuster drugs today, it is of grave importance that pharmaceutical companies protect those drugs whose revenue streams will enable them to keep developing new medicines over the next decade," says Jon Hess, senior analyst at Cutting Edge Information.

"This means brand teams must anticipate generic competition, plan way in advance, and develop a flexible strategy to deal with any scenario."

According to Hess, brand teams and product managers must consider a variety of defensive and proactive strategies to retain market share when generics come into play. "Planning years in advance and knowing which course of action to take when presented with a unique scenario is critical," Hess says.

For example, AstraZeneca retained -- and even grew -- its gastrointestinal franchise when its blockbuster Prilosec encountered generic competition. The company developed and launched a next-generation line extension, Nexium, in time to switch patients to the improved treatment, thereby growing franchise sales by nearly 10% from $6 billion in 2001 to $6.6 billion in 2002.

"Combating Generics: Pharmaceutical Brand Defense," available at http://www.PharmaGenerics.com, includes more than 250 metrics on generics- defense lifecycle management planning and execution, budgets allocated for franchise and line extension R&D, staffing resources dedicated to combating generics, and more.

To download a free summary of this 190-page report, visit http://www.PharmaGenerics.com. For more information or to learn about other Cutting Edge Information research, contact Jon Hess at jon_hess@cuttingedgeinfo.com or call +1-919-403-6583.

Cutting Edge Information
http://www.cuttingedgeinfo.com
http://www.PharmaGenerics.com

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