‘Industry predicts increased pressure on the branded pharmaceutical industry’ says visiongain report
June 01, 2006 (PRLEAP.COM) Health NewsLondon, UK, and San Francisco, CA; 24 May 2006: The global pharmaceutical market has entered a period of change that could signify the start of an industry-wide economic downturn. The pharmaceutical industry has enjoyed high growth rates and positive outlook since its inception, and has consistently been one of the most productive industry sectors. However visiongain’s latest report suggests that this is ending. “The development of an ultra-competitive generic industry together with unprecedented patent loss will see branded companies struggle”, said visiongain pharmaceutical market analyst Tristan Heath. PLM (Product Lifecycle Management) has been touted as a revenue saving concept, but as the report suggests, the choice of strategy is vital.
The global pharmaceutical market is currently valued at $550 billion. However, by 2009 an estimated $78 billion of revenue producing drugs will have lost patent protection. Generic competition is expected to take at least 50% of the market and the consequent loss of income for the branded companies is significant. Drug development is taking longer, R&D investment is increasing exponentially and yet NCE approvals are static at approximately 50 per year. In this challenging market situation, branded pharmaceutical companies are utilising aspects of PLM more commonly associated with other industries, in an effort to boost revenue.
Although reformulation and combination products have been a part of the industry for a number of years, OTC switching and authorised generics are examples of relatively new additions to the PLM portfolio of strategies. The visiongain report considers the various strategies and attempts to assess the appropriateness of each depending on drug and market type.
A key aspect of any PLM strategy is to produce a product that provides an increased therapeutic advantage for the patient. Each PLM strategy is designed to increase profit for the pharmaceutical company. However, with pressure on healthcare authorities to reduce expenditure, the justification of additional cost by improved therapeutic value is a key aspect determining success.
Visiongain’s report – Product Lifecycle Management, 2006- assesses the PLM strategies, listing strengths and weaknesses and analyses which drugs would benefit from specific strategies. An overview of the patent regulations determining the market and the potential ROI for each strategy is considered.
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Background: Visiongain is one of the fastest growing and most innovative independent media companies in Europe today. Based in London, UK, visiongain produce a host of business-2-business conferences, newsletters, management reports and E-Zines focusing on the Financial markets, the Pharmaceutical, Telecoms industries and the Defence sector.
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