Developmental, commercial, and regulatory/legal strategies all play a key role in boosting the profitability of pharmaceutical products, says GBI Research.
Analysis from business intelligence provider GBI Research – Lifecycle Management Strategies – Optimizing Revenues and Defending Generic Competition – says that it is becoming increasingly important for pharmaceutical companies to implement suitable lifecycle management strategies to maximize revenues and the lifespan of their portfolios.
This is particularly important in a time of shrinking research and development (R&D) pipelines and mounting costs involved in drug development. For a complimentary sample of this research, please visit the GBI Research website.
Analyst Priyatham Salimadugu notes: “Successful lifecycle management planning commences early in the lifecycle of a drug, ideally during the R&D phase, and that multiple factors, such as timing, disease characteristics and market environment, should be considered when choosing a lifecycle management strategy.”
“The key to good lifecycle management is not to manage a single product in isolation, but to think in terms of optimizing sales of the company’s entire portfolio, both marketed and R&D, through planning and learning across the organization. However, the changing industry and regulatory environment is impacting the effectiveness of lifecycle management strategies themselves. As such, lifecycle management strategy selection and implementation needs to be a dynamic and adaptive process, and having access to up-to-date market intelligence is a vital factor,” adds Salimadugu.
GBI Research’s report also states that while developmental strategies are implemented to significantly increase revenue during the period of market exclusivity, commercial strategies work to expand a product’s uptake and value.
Salimadugu continues: “Developmental lifecycle management strategies focus on increasing the number of patients eligible to receive a drug, such as by expanding its usage for different indications or targeting rare diseases. These strategies also focus on maximizing patient uptake, by offering more convenient methods of administration, improving dosing frequencies or reducing side-effects.”
“Commercial strategies include switching from prescribed to over-the-counter drugs, geographical expansion, and utilizing price flexibility. In this last case, timing and competitive intelligence are crucial to the success of strategic pricing, as altering the price too early or too late may mitigate any benefit,” the analyst concludes.