Bharatbook added a new report on "Big Pharmas Key Lifecycle Management Strategies - Maximizing the Market Potential" which gives the LCM strategy, expansion and popularity in the Pharmaceutical Industry.
Online PR News – 03-February-2010 – – Big Pharmas Key Lifecycle Management Strategies - Maximizing the Market Potential
It provides key data, information and analysis on the main lifecycle management strategies being implemented by pharmaceutical companies. The report provides information on the lifestyle management strategies (LCM) market, the reasons why companies implement LCM strategies and the challenges faced by them. This report provides comprehensive analysis of five key LCM strategies (new indications, formulation variants, extended/controlled released versions, Rx-to-OTC switches and store brand generics) using case studies. The report also provides the sales growth patterns of the key drugs for which LCM activities are being carried out. It also reviews the factors determining the success and failure of the strategies providing an understanding of how to ensure success for LCM. ( http://www.bharatbook.com/detail.asp?id=130309&rt=Big-Pharmas-Key-Lifecycle-Management-Strategies-Maximizing-the-Market-Potential.html )
Increasing Cost Pressures Will Drive the Growth in LCM Activities
Increasing cost pressures have forced pharmaceutical companies to look for other sources of revenue besides the development of new drugs. The cost of developing a new drug has increased over the years from $54m in 1976 to $280m in 1991 to $1.5 billion in 2004 and is expected to grow further in future. Several blockbuster products such as Lipitor, Plavix, Nexium, Seroquel XR and many others, worth $127 billion currently, are set to expire by 2014. The increasing competition from generics will also continue to erode the revenues of prescription drugs. These factors are expected to drive the pharmaceutical companies to maximize their revenues by minimizing costs. Better management of the lifecycle of the existing brands is a more cost-effective way for pharmaceutical companies to increase revenues than investing money in developing new brands.
Indication Expansion is the Most Popular Form of Lifecycle Management Activity in the Pharmaceutical Industry
Study of the pipelines of 20 major pharmaceutical companies has revealed that indication expansion remains the most popular LCM strategy for their products. Other alternatives include combination therapies, new formulations, dosage variants and extended release formulations. Rx-to-OTC switch also remains one of the popular methods used to manage the lifecycle of drugs whose patents have expired. However, indication expansion activities account for more than 80% of the LCM pipelines for the companies analyzed in this report
The popularity of indication expansion as an LCM strategy is due to its potential to expand the patent pool and extend the drug’s market exclusivity. With every expansion providing access to a new patient pool, a company’s revenue stream is boosted considerably by this activity. There is at least one project devoted to expanding the indications for almost every drug in the LCM pipeline.
Cancer and CNS Therapeutic Areas Dominate the LCM Research Pipeline
Cancer dominates the LCM pipeline with the highest number of projects under research, followed by CNS which occupies almost one-fifth of the pipeline. Together the two therapeutic areas occupy more than half of the LCM research pipeline. While the $48.1 billion cancer market currently has 130 projects in the LCM pipeline, the CNS market, currently valued at $99.5 billion, accounts for less than half of that with 55 projects. CVS accounts for 29 LCM projects out of which 25 are in late-stage development. LCM research is also underway for the areas of infectious diseases as well as metabolic diseases. The other areas under the research include gastrointestinal disorders, musculo-skeletal diseases, hemocytic disorders and women’s health. Lung cancer, breast cancer and colorectal cancer are the major areas in the LCM cancer research while bipolar disorders (depression, mania and so on), insomnia and schizophrenia are the major areas undergoing LCM CNS research. The major drugs undergoing the cancer LCM research include Avastin, Rituxan, Herceptin, Tykerb/Tyverb, Nexavar, Sutent and so on. The major drugs in the CNS LCM pipeline include Lyrica (pregabalin) and Nuvigil (armodafinil).
Degree of Integration of LCM Strategy to the Corporate Business Strategy would Drive the Success of LCM Strategies in Future
Although LCM programs are becoming important for pharmaceutical companies, they have not received the attention from the senior management that they deserve. Most pharmaceutical companies have LCM programs as a knee-jerk reaction and not as a part of an overall company strategy. Therefore, LCM often remains a standalone department within an organization without any concrete long-term goals. For the successful implementation of an LCM strategy, it is important that functions within organization such as R&D, manufacturing, sales and marketing are completely synchronized.
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