As the pharmaceutical industry continues to face a variety of challenges such as pricing pressures, stringent regulatory policies and declining R&D productivity, it is seeking new business models, particularly holistic approaches or strategies that can accelerate new product development or extend the lifecycle of products more effectively, according to business intelligence provider GBI Research.
The company’s latest report states that the issues facing the industry leave pharmaceutical companies exposed to generic and biosimilar competition, which can erode a significant percentage of their sales and market share within a short period of time. Indeed, companies risk losing up to 90% of the revenue of some of their biggest products to generic and biosimilar competition.
Makthal Vinod, Analyst for GBI Research, explains: “The integration of multiple pharmaceutical lifecycle management strategies will continue to be at the forefront of the pharmaceutical industry’s efforts to address declining R&D productivity, stricter reimbursement demands and increasing generic and branded competition.”
The rapid revenue losses that innovator companies can experience following the patent expiry of a drug call for the incorporation of sophisticated strategies that allow for maximising a drug’s lifetime value.
Vinod continues: “Pharmaceutical companies will continue investing significant capital and resources into preserving the patent life and the subsequent profits of products which take several years to produce. It will remain crucial for these companies to plan and begin implementing these strategies early in the product’s lifecycle and carefully consider the needs of all key stakeholders as market continues to focus on cost-effective therapies.
“Payers in particular will continue demanding more data that demonstrate the benefit and cost-effectiveness of medical interventions. This continued shift in focus towards therapies that generate better outcomes at a lower cost will continue to have major implications for manufacturers considering new lifecycle management strategies to implement.”