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Specialty Pharma: Guide to Success at the New Frontier

Published by: Decision Resources

Published: May. 31, 2007 - 27 Pages


Table of Contents


Executive Summary

Strategic Considerations

Stakeholder Implications

An Aspirational Business Model

Transformational Drivers

Paucity of New Products

Parsimony of Customers

Pharma’s Aversion to Risk

R&D Polarization

Lure and Trap of Patents

Misreading the Runes

The Rise of Specialty Pharma

The Price of Success

Dealing with Uncertainty

New Specialty Business Models

Product Acquisition

Spin-Offs

Company Acquisition

Research & Development

Specialty Generics

Drug Delivery and Formulation

Geographic Specialization

Therapy Area Specialization

Customer Specialization

Unmet Medical Need Specialization

Orphan Drugs

Challenges

Niche-Buster Strategies

Theranostics

Value for Money

The Three Cs: Crowded, Concentrated, and Competitive

A Specialty Pharma Guide to Success

Multivectored Business Models

Lean Structures

Enhanced Customer Focus

Real Differentiation

Value-for-Money

Greater Acceptance of Risk

Professionalism

Capturing the Future

Figures

1. Big Pharma, Specialty Pharma, and Biotech—Year-end Market Value, 2006

2. Research and Development Expenses, Total NDAs, and NDAs for NME Submissions, 1993-2004

3. Pharma Industry Profi ts from the Developed World, 2006

4. Specialty Pharma Forced to Reconfi gure its Business Model

5. Specialty Pharma Now Utilizes a Range of Business Models

6. Specialty Pharma’s Multivectored Business Models

7. Specialty Pharma Needs a Holistic Approach to Differentiation to Create New Value Perceptions

Tables

1. Select Specialty Pharma Companies and Key Drugs—2006 Worldwide Sales

Abstract

Recently catapulted into the pharmaceutical industry limelight, Specialty Pharma may well be the solution to many of Big Pharma’s current woes. Its success driven largely by astute manipulation of the business and market issues that currently plague Big Pharma, Specialty Pharma has shown the potential to capture and firmly command market spaces once dominated by Big Pharma.

Get the Answers You Need to Shape Your Strategy
The emergence of Specialty Pharma as a market force occurred as Big Pharma and Mid Pharma began to consolidate. What strategies will Specialty Pharma pursue as it continues to capitalize on Big Pharma’s looming market problems?

Patents have become a trapdoor for both Big Pharma and Mid Pharma alike; once patents expire, these companies fi nd themselves hanging in a market abyss. What methods are Specialty Pharma using to sidestep such patent expiry pitfalls? What specifi c markets or patient cohorts are receiving attention from Specialty Pharma?

Value-for-money is the mantra of today’s knowledgeable and organized health care customers—a challenge for Specialty Pharma, which has received condemnation over its pricing of orphan drugs. How can Specialty Pharma best present its pricing practices to an increasingly informed and skeptical consumer audience?

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