Pharmaceutical Executive Europe - September 2006 - (Page 22)

A New World Order Generics sales forces have a different approach to selling drugs from those working in branded pharmaceuticals and their results will have a big impact on how traditional pharmaceutical companies operate and interact with prescribers. In addition, customers are becoming more Christopher Hudd raditional thinking has it that branded T demanding, with considerable pricing pressure in the pharmaceutical sales forces sit above those of is commercial training and UK, Germany and the Netherlands to name but a few. generics manufacturers in the pharmaceuticals caste development consultant and system, but all this needs to change if they are to co-director of Springboard The will to succeed continue to prosper. Commercial Solutions, UK. It is the generics manufacturers who are getting Within this massive market, where barriers to bigger and richer by the day, while branded competition are falling, the key to success will be pharmaceutical companies see many of their assets in strong commercial strategies based on intimate the form of patented drugs coming to the end of their knowledge of the customer and the key opinion protected lifespan. leaders KOLs in each market. Manufacturers will need Branded pharmaceutical companies are defending to develop healthcare solutions which address both their position through evergreening of their brands the healthcare priorities and the commercial and line extensions, but the fact is that by 2008 some imperatives: part cure, part business plan. $80 billion of patents will be gone. Generics, on the But even more than this, those that succeed will other hand, continue to grow and grow. develop a truly commercial culture and mindset within The sector is currently worth in the region of $40 their organization, which is perfectly aligned to their billion, with much of this expansion expected in commercial strategy. This culture is developed via the Europe. Datamonitor estimates growth from $7 billion right type of commercial training and development in 2002 to $16 billion in 2008, driven by a mix of cost after all, it is people that will ultimately sell the product. containment measures in countries such as France, and If we accept this picture of a new world order where the opening up of new markets in southern Europe.1 the aristocracy is beginning to lose its land and privileges to an ascendant merchant class, then we can Despite this favourable business environment, generics go on to make some judgements about how the rivals manufacturers are not having it all their own way. Within will perform in this new world and what their priorities the sector there is intense competition and this is set to should be to move forwards. grow with the harmonization of European regulations, Paying due deference to the current class system, we which will reduce the barriers to market entry by dynamic start with branded pharmaceuticals. There is a sense new players outside the region such as India. 22 SEPTEMBER 2006 GENERICS

Table of Contents for the Digital Edition of Pharmaceutical Executive Europe - September 2006

European Overview: Competition Time
Growth Strategies: Survival of the Fittest
Pharma Defence Strategies: Fighting Fire with Fire
Biogenerics: The Evolution of Biosimilars
Branding and Marketing: What's in a Name?
Branding and Marketing: A New World Order
Legal: Balancing Acts
Q&A: Champion of Industry
Q&A: Courting Consolidation
Market Outlook: Top Five Trends

Pharmaceutical Executive Europe - September 2006