Summary of Pharmaceutical Product Life Cycle Management Strategies
The video discusses strategies for managing the life cycle of pharmaceutical products, highlighting the stages from product introduction to decline. The product life cycle in pharmaceuticals consists of three main stages: research and development, market exclusivity, and post-exclusivity.
Main Financial Strategies and Market Analyses:
- Product Life Cycle Stages:
- Introduction: Investment in R&D without sales.
- Growth: Product launched, profits begin, market awareness created.
- Maturity: Focus on maintaining market share.
- Decline: Strategies to combat generic competition and retain market share.
- Market Exclusivity:
- Average market exclusivity for new drugs is about 13.5 years.
- Companies file for a patent soon after drug discovery, which lasts for 20 years.
- Strategies to Extend Product Life Cycle:
- Evergreening: Launching next-generation drugs or line extensions to switch patients before original patents expire.
- Flanking: Developing and marketing generics through subsidiaries or partnerships as patents expire.
- Rx to OTC Switching: Converting prescription drugs to over-the-counter status to fend off generic competition.
Step-by-Step Methodology:
- Evergreening Strategy:
- Shift patients to a new drug before the original patent expires.
- Ensure the new drug offers improved benefits.
- Maintain a visual similarity to the original product.
- Flanking Strategy:
- Launch a generic version of the branded drug once the patent expires.
- Options include:
- Selling the generic through the company's own arm.
- Partnering with a third-party generic manufacturer.
- Authorizing a generic company to produce the drug.
- Rx to OTC Switching:
- Gain FDA approval for OTC sale before patent expiration.
- Ensure the drug has competitive advantages and high brand awareness.
Presenters/Sources:
- The video references a study by Duke University economist Henry Grabovsky.
- Mentions AstraZeneca's strategies with Prilosec and Nexium as well as other pharmaceutical companies' approaches.
Notable Quotes
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Category
Business and Finance