Pharmaceutical Executive Digest Europe - February 11, 2009 - (Page 12) Diagnostics the diagnostic and clinical guidelines for disease treatment. There cannot be a single-minded pursuit of sales of a particular drug, because the diagnostic will also highlight patient subgroups that will not respond appropriately. Where it works Forty percent of US branded pharmaceutical sales are derived from products that sell less than $150 million annually. The techniques and strategies effective for larger sales compounds, such as reformulation and indication expansion, can rarely be justified for smaller products. Instead, these compounds gain attention only when a generic drug launches a patent challenge — or the company decides the drug no longer fits within its strategic priorities, and sells it off. While the personalised medicine approach does work with larger volume sales products, it must compete with more traditional life cycle management techniques, which may generate similar or better returns. AstraMerck’s decision to acquire the marketing rights to a hand-held diagnostic gastric ulcer test (HPChek, in 1996) offers an example. At that time, Prilosec was the leading proton pump inhibitor, with annual US sales approaching $2 billion. AstraMerck obtained an indication expansion for Prilosec for the treatment of gastric ulcers in combination with the antibiotic Biaxin. The test developed by the now-defunct Chemtrak was an inexpensive ($12), disposable, single-use, whole-blood test. Upon FDA approval, AstraMerck obtained full marketing and distribution rights for HPChek, and the test was marketed along with Prilosec. Results from this marketing demonstrated a healthy 18% growth in sales of Prilosec to treat gastric ulcers. AstraMerck, however, concurrently launched an extensive directto-consumer marketing campaign for Prilosec, which grew sales by 32% during the same time period. Based on these results, AstraMerck returned the rights to HPChek to Chemtrak after five quarters. Conclusion The explosive growth in diagnostics based on advancements in molecular medicine is set to drive more opportunities. In many cases, the diagnostic will already be approved, and the challenge will be integrating the product, diagnostic, sales, marketing, and reimbursement capabilities. In other instances, the diagnostic will need additional development and clinical validation. Nevertheless, the additional costs for these activities will be less than the costs of manipulating the molecule or paying for clinical trials to expand indications. The source of this innovation will not necessarily be the original drug developers. Academic researchers, diagnostic companies, clinical labs, and specialty companies will also play a critical role in providing content. Pharma companies that need to extract the maximum value from their current portfolios will also play a role. While pharmaceutical companies that have diagnostic divisions may have an initial advantage over “pure plays,” the availability of strong diagnostic sales and marketing capabilities at clinical labs and independent diagnostic developers will provide strategic and alliance opportunities for pharmas to take advantage of. Amit Agarwal is a partner with Scientia Advisors. He can be reached at aagarwal@ scientiaadv.com. For the full version of this article, please click here. MISS IT, MISS OUT! Ensure you receive Pharm Exec Europe every week. Click here to subscribe for FREE now! pharmexec.com 13 BUSINESS ETHICS Could you blow the whistle? 16 ON THE MOVE This weeks appointments and promotions 2 FROM THE EDITOR A week in pharma is a long time 3 NEWS Best new antidepressants named http://pharmexec.findpharma.com/pharmexec/Strategy Articles/Overlooked-Opportunities/ArticleStandard/Article/detail/574630?contextCategoryId=43837 http://pharmexec.findpharma.com/pharmexec/Strategy Articles/Overlooked-Opportunities/ArticleStandard/Article/detail/574630?contextCategoryId=43837 http://www.pharmexec.com
Table of Contents Feed for the Digital Edition of Pharmaceutical Executive Digest Europe - February 11, 2009 Pharmaceutical Executive Digest Europe - February 11, 2009 Contents From the Editor News Calendar Actavis Exclusive Diagnostics Business Ethics On the Move Pharmaceutical Executive Digest Europe - February 11, 2009 Pharmaceutical Executive Digest Europe - February 11, 2009 - Contents (Page 1) Pharmaceutical Executive Digest Europe - February 11, 2009 - From the Editor (Page 2) Pharmaceutical Executive Digest Europe - February 11, 2009 - News (Page 3) Pharmaceutical Executive Digest Europe - February 11, 2009 - News (Page 4) Pharmaceutical Executive Digest Europe - February 11, 2009 - Calendar (Page 5) Pharmaceutical Executive Digest Europe - February 11, 2009 - Calendar (Page 6) Pharmaceutical Executive Digest Europe - February 11, 2009 - Actavis Exclusive (Page 7) Pharmaceutical Executive Digest Europe - February 11, 2009 - Actavis Exclusive (Page 8) Pharmaceutical Executive Digest Europe - February 11, 2009 - Actavis Exclusive (Page 9) Pharmaceutical Executive Digest Europe - February 11, 2009 - Diagnostics (Page 10) Pharmaceutical Executive Digest Europe - February 11, 2009 - Diagnostics (Page 11) Pharmaceutical Executive Digest Europe - February 11, 2009 - Diagnostics (Page 12) Pharmaceutical Executive Digest Europe - February 11, 2009 - Business Ethics (Page 13) Pharmaceutical Executive Digest Europe - February 11, 2009 - Business Ethics (Page 14) Pharmaceutical Executive Digest Europe - February 11, 2009 - Business Ethics (Page 15) Pharmaceutical Executive Digest Europe - February 11, 2009 - On the Move (Page 16)
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