Effective Drug Life Cycle Management: The Crucial Interaction Between Brand Life Span and Market Life Cycle
Decision Resources
September 30, 2008 33 Pages - SKU: DECR1917712
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Introduction
Pharmaceutical companies recognize the importance of life cycle management but often focus on their own
brands without taking note of the all-important market life cycle. Companies need to understand how the three
stages of the brand life span relate to the four stages of the market life cycle. The challenges increase as markets
approach the mature and declining stages and generics competition looms. Follow-on products can offer a
defense against generics erosion, but companies must avoid four common mistakes. The statin market, the bestselling
drug class in the United States, offers valuable lessons on life cycle management.
Get the Answers You Need to Shape Your Strategy
- The market life cycle has four stages-introduction, growth, maturity, and decline. What are the
characteristics of each of these stages? What four factors must manufacturers consider in each of these
stages?
- Brand life span can be divided into three stages-launch, maintenance, and retirement. What is the
relationship between brand life span and market life cycle? How do appropriate pricing strategies in
each brand life stage vary depending on the stage of the general market cycle?
- Generics competition can erode a brand's market share by more than 90% in less than a year. How aggressive
is generics erosion in extreme cases? What impact does generics competition have on the prices of
branded and generic drugs?
- Many companies have used follow-on drugs as a defense against generics competition. What are the various
types of follow-on drugs? What are the keys to the successful launch of a follow-on product, and what
mistakes must manufacturers avoid? Which brands are examples of notable successes and failures?
Scope
- Interaction of brand life span and the market life cycle: introduction; growth; maturity; decline; a
series of tables provide clear guidance on strategies to adopt in each interactive stage.
- Follow-on drugs as a tool of life cycle management: types of follow-on drugs; keys to a successful
launch; successes and failures.
- The statin market as a life cycle case study: Mevacor; Pravachol; Zocor; Lescol; Lipitor; Baycol;
Crestor.
- Outlook and implications for the pharmaceutical industry: challenges in the mature and
declining stages of the life cycle; increasing generics competition; growing emphasis on comparative
effectiveness research.
Please note, the PDF e-mail from publisher version of this report is for a global site license.
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Additional InformationMentioned in This Spectrum Report
Companies
- Aetna Pharmacy Management
- AstraZeneca
- Bayer
- Blue Cross Blue Shield Association
- Bristol-Myers Squibb
- Dr. Reddy’s Laboratories
- Eli Lilly
- Express Scripts
- Forest Laboratories
- GlaxoSmithKline
- IMS Health
- Lundbeck
- Medco Health
- Merck & Co.
- Novartis
- Pfizer
- Ranbaxy Laboratories
- Sandoz
- Sankyo
- Sanofi -Aventis
- Schering-Plough
- Teva Pharmaceutical Industries
- UnitedHealth Group
- Verispan
- Warner-Lambert
Brands
- Ambien (zolpidem)
- Baycol (cerivastatin)
- Celexa (citalopram)
- Claritin (loratadine)
- Clarinex (desloratadine)
- Crestor (rosuvastatin)
- Glucophage IR (metformin [immediate-release])
- Glucophage XR (metformin [extended-release])
- Lescol (fl uvastatin)
- Lexapro (escitaloram)
- Lipitor (atorvastatin)
- Lopid (gemfi brozil)
- Mevacor (lovastatin)
- Nexium (esomeprazole)
- Paxil (paroxetine)
- Pravachol (pravastatin)
- Prilosec (omeprazole)
- Prozac (fl uoxetine)
- Vytorin (ezetimibe plus simvastatin)
- Zithromax (azithromycin)
- Zocor (simvastatin)
- Zoloft (sertraline)
- Executive Summary
- Strategic Considerations
- Stakeholder Implications
- Introduction
- Market Life Cycle
- Introductory Stage
- Growth Stage
- Mature Stage
- Declining Stage
- The Interaction of Market Life Cycle and Brand Life Span
- Introductory Stage
- Growth Stage
- Mature Stage
- Declining Stage
- Generics Competition
- Follow-On Drugs as a Tool in Life Cycle Management
- Types of Follow-On Drugs
- Keys to a Successful Launch
- Successes and Failures
- Nexium
- Lexapro
- Clarinex
- Glucophage XR
- Life Cycle Case Study: The Statin Market
- Mevacor
- Pravachol
- Zocor
- Lescol
- Lipitor
- Baycol
- Crestor
- Outlook and Implications for the Pharmaceutical Industry
- Tables
- 1. Key Factors in Life Cycle Management
- 2. Pricing Strategies by Brand Life Stage and Market Life Cycle Stage
- 3. Examples of Follow-On Drugs on the Market
- 4. Attributes of Follow-On Drugs Valued by Major Stakeholder Groups
- 5. Key Questions Regarding Follow-On Drugs
- Figures
- 1. Product Life Cycle Curve
- 2. Market Life Cycle Curve
- 3. Impact of Six Months of Generics Erosion on Select Brands’ Market Shares
- 4. Average Price of Brands and Generics as a Percentage of Respective Brands’ Price Prior to Generic Entry
- 5. U.S. Sales of Prilosec and Nexium, 2001-2007
- 6. U.S. Sales of Celexa and Lexapro, 2001-2007
- 7. U.S. Sales of Claritin and Clarinex, 2001-2007
- 8. U.S. Sales of Glucophage IR and Glucophage XR, 2001-2004
- 9. Ex-Manufacturer Prices, 1997-2007, of Branded Statins as a Percentage of Their 1997 Prices
- 10. Ex-Manufacturer Prices, 1997-2007, of Branded Statins as a Percentage of Average Branded Statin Prices in Each Year
- 11. Life Cycle of U.S. Statin Market, 1987-2007
- 12. Express Scripts’ Calculations of Actual and Potential Generics Dispensing Rates and Potential Savings, 2007
- 13. Cumulative Sales of Branded Drugs Facing Generics Competition, 2008-2012
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