Pharmaceutical Commerce - July/August 2011 - (Page 13)

Business Finance Figure 5: Breakdown of prescription segments of 17 chronic therapy areas This means that a product’s launch trajectory is primarily built by patients currently on some form of therapy (i.e. patients who either switch from or add to a current therapy) rather than patient who is not receiving some type of therapy at all. And this makes sense intuitively. Why would a physician try a new product (with which he has little experience) on a new patient (of which he does not necessarily have any treatment history)? Better then to try the product on a patient whose treatment history is known and whose current therapy does not achieve the desired results. Consistent with this logic the proportion of new therapy starts grows from about 25 to 30% of the dynamic market after about a year. Lastly, similar to how the size of the dynamic market differs between countries and therapeutic areas, the proportions by which products penetrate the market will also differ. For each product launch (or new indication for that matter) companies therefore need to study these aspects judiciously in order to ensure that they understand the specifics and intricacies of their product’s particular market. The Short Window of Opportunity How a product penetrates the dynamic is an interesting aspect of the composition of a launch trajectory. How quickly this happens is equally interesting. And many may not believe the answer. A product’s share of the dynamic market on average peaks just three months after launch (Fig. 8). That is Figure 6: Victroza has captured significant market share in Type II diabetes, outdistancing Byetta an incredibly short time in the context of a product’s lifecycle and it underscores the importance of performing well early. This, of course, does not mean that a product cannot gain a greater share of the dynamic market throughout its lifecycle. By generating the appropriate evidence a company can unlock both new patient pools and gain a competitive edge versus current competitors resulting in an increased share. It does, however, further underscore the importance of appropriate preparation for the launch overall. The dynamic market is the foundation on which all new products build their trajectories. Penetrate it well and your product will enjoy rapid uptake. Fail to penetrate it and your trajectory will be flat. This article has emphasized four key points about the dynamic market that all companies should consider for their future product launches. First of all, the size of the dynamic market remains fairly consistent over time. A new product launch therefore does not necessarily grow the dynamic market. Second the dynamic market is very small. A new product therefore launches into a very small sub-set of the total market. Third, typically new products enter the market through switches and add-ons. That is, the currently treated patient (i.e. a patient who has received some type of prior therapy) drives the trajectory rather than patient who is not receiving some type of therapy at all. Lastly, a product’s share of the dynamic market is set within the first three months. That is, the window of opportunity for a product to set its share within the dynamic market is incredibly short. All of these findings impact the development and commercialization of a new product (from forecasting and clinical trial design, to resource allocation and performance tracking), and companies should critically and honestly assess how they apply to their future product launches. In addition, companies ought to investigate the specifics of the dynamic market for their particular therapeutic area and patient segment. Only through a thorough understanding of the dynamic market and the forces that influence it will a company have the ability to maximize launch trajectory and achieve launch excellence. PC Footnotes 1. While the analysis in this paper is limited to the U.S. market, the theory of the dynamic market remains applicable throughout the world. 2. Admittedly there is a chance that the product would only increase the switch rate and thereby not grow the patient pool but only the size of the dynamic market. That seems an unlikely scenario, however, since it would require that the diagnostic would target only a sub-set of a population that also currently was not receiving treatment. 3. This is based on an analysis of seventeen chronic therapeutic areas: ADHD, Alzheimer’s, BPH, Dyslipidemia, COPD-Asthma, Depression, Diabetes, HIV, Hypertension, Insomnia, Migraine, Over-Active Bladder, Osteoporosis, Parkinson’s Disease, GERD/Ulcers, Schizophrenia/Bipolar disorder, Epilepsy/Seizures 4. We do not deny the fact that products are still used off-label. It does, however, make it more difficult for a product to penetrate a patient segment that does not show up in their label. Figure 7: Figure 8: ABOUT THE AUTHOR Rob Harold advises leading pharmaceutical companies on maximizing the potential of their new products. Since joining IMS Health in 2007, Rob has studied hundreds of product launches and has a unique perspective on the issues that new products face in today’s challenging launch environment. Prior work experience includes Boehringer Ingelheim Canada, US, and at corporate headquarters in Germany, managing the launches of cardiovascular, smoking-cessation and respiratory products. Rob holds a B.Sc. from the University of Guelph and an MBA from Columbia Business School. Source of Business Contribution Across 56 New Product Launches How the dynamic market might mature ABOUT THE AUTHOR Filip Odqvist is a Consultant at IMS where he specializes in new product launches. Since joining in January, 2009, he has helped brand teams excel at product launches through launch planning and KPI development and tracking, as well as help build IMS’ Launch Excellence platform. Prior to joining IMS Health, Filip was at sanofi-aventis where he worked in product marketing and institutional communication and marketing. Filip holds a bachelor degree in liberal arts from Middlebury College with a focus in Economics and French. July | August 2011 13 www.PharmaceuticalCommerce.com http://www.PharmaceuticalCommerce.com

Table of Contents for the Digital Edition of Pharmaceutical Commerce - July/August 2011

Pharmaceutical Commerce - July/August 2011
Contents
Op-Ed
Top News
Business/Finance
Brand Communications
Supply Chain/Logistics
Manufacturing & Packaging
Legal/Regulatory
Information Technology
PDMA Exhibitors
Meetings and Editorial Index

Pharmaceutical Commerce - July/August 2011

Pharmaceutical Commerce - July/August 2011 - Pharmaceutical Commerce - July/August 2011 (Page Cover1)
Pharmaceutical Commerce - July/August 2011 - Pharmaceutical Commerce - July/August 2011 (Page Cover2)
Pharmaceutical Commerce - July/August 2011 - Pharmaceutical Commerce - July/August 2011 (Page 3)
Pharmaceutical Commerce - July/August 2011 - Contents (Page 4)
Pharmaceutical Commerce - July/August 2011 - Contents (Page 5)
Pharmaceutical Commerce - July/August 2011 - Contents (Page 6)
Pharmaceutical Commerce - July/August 2011 - Op-Ed (Page 7)
Pharmaceutical Commerce - July/August 2011 - Top News (Page 8)
Pharmaceutical Commerce - July/August 2011 - Top News (Page 9)
Pharmaceutical Commerce - July/August 2011 - Top News (Page 10)
Pharmaceutical Commerce - July/August 2011 - Top News (Page 11)
Pharmaceutical Commerce - July/August 2011 - Business/Finance (Page 12)
Pharmaceutical Commerce - July/August 2011 - Business/Finance (Page 13)
Pharmaceutical Commerce - July/August 2011 - Business/Finance (Page 14)
Pharmaceutical Commerce - July/August 2011 - Business/Finance (Page 15)
Pharmaceutical Commerce - July/August 2011 - Brand Communications (Page 16)
Pharmaceutical Commerce - July/August 2011 - Brand Communications (Page 17)
Pharmaceutical Commerce - July/August 2011 - Brand Communications (Page 18)
Pharmaceutical Commerce - July/August 2011 - Brand Communications (Page 19)
Pharmaceutical Commerce - July/August 2011 - Supply Chain/Logistics (Page 20)
Pharmaceutical Commerce - July/August 2011 - Supply Chain/Logistics (Page 21)
Pharmaceutical Commerce - July/August 2011 - Supply Chain/Logistics (Page 22)
Pharmaceutical Commerce - July/August 2011 - Supply Chain/Logistics (Page 23)
Pharmaceutical Commerce - July/August 2011 - Supply Chain/Logistics (Page 24)
Pharmaceutical Commerce - July/August 2011 - Manufacturing & Packaging (Page 25)
Pharmaceutical Commerce - July/August 2011 - Manufacturing & Packaging (Page 26)
Pharmaceutical Commerce - July/August 2011 - Manufacturing & Packaging (Page 27)
Pharmaceutical Commerce - July/August 2011 - Legal/Regulatory (Page 28)
Pharmaceutical Commerce - July/August 2011 - Legal/Regulatory (Page 29)
Pharmaceutical Commerce - July/August 2011 - Information Technology (Page 30)
Pharmaceutical Commerce - July/August 2011 - Information Technology (Page 31)
Pharmaceutical Commerce - July/August 2011 - PDMA Exhibitors (Page 32)
Pharmaceutical Commerce - July/August 2011 - PDMA Exhibitors (Page 33)
Pharmaceutical Commerce - July/August 2011 - PDMA Exhibitors (Page 34)
Pharmaceutical Commerce - July/August 2011 - Meetings and Editorial Index (Page 35)
Pharmaceutical Commerce - July/August 2011 - Meetings and Editorial Index (Page Cover4)
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