Launching Next Generation Oncology Products: Evolving Strategies in a Payor’s Market

Published by: Business Insights

Published: Aug. 1, 2009 - 155 Pages

Table of Contents

Launching Next Generation Oncology Products Oncology market analysis

The payor response

Addressing market challenges

Summary

Chapter 1 Oncology market analysis

Introduction

Oncology outpaces pharma sales growth

Payor leverage

Oncology growth drivers

The growing importance of targeted therapy

Establishing a presence in oncology

Falling by the wayside

How cancer is different

Cancer is many diseases

Room for growth in oncology

How cancer is not so different

Budgetary pressure prevails

Summary

Chapter 2 The payor response

Introduction

HTAs are here to stay

Health technology assessment in the US

Volume versus price

Pharma moves to head off coercive action

More comparative effectiveness research

Growing momentum for government involvement in CER

Already some restrictions

Shifting Costs to the Patient

Shifting the cost to the patient

Health technology assessment in Europe

Different countries, different values

Comparing Uptake

NICE’s record on cancer drugs

Cancer drugs recently turned down by NICE

Tykerb

Erbitux

Nexavar

Yondelis

Hycamtin

Making space for cancer drugs

Higher threshold for end-of-life therapies

Concerns about the new criteria

Flexible pricing

Skirting NICE

Not Just The UK

NICE is not the final hurdle

Hard sell

Biosimilars on the horizon

Summary

Chapter 3 Addressing market challenges

Introduction

It’s all about value

Establishing a strong value proposition

Selecting endpoints

Adding to the gold standard

Using subgroups

Post-marketing studies

From efficacy to effectiveness

Getting marketing involved

What price innovation?

Pricing for access

Prioritizing the correct indication

Integrated treatment packages

New markets, new opportunities

Getting the launch right

Lack of access for sales representatives

Quality trumps quantity

Increasing patient power

Using the media

Index

List of Figures

Figure 1.1: Oncology growth contribution

Figure 1.2: Targeted therapies driving oncology growth

Figure 1.3: The rush to invest in oncology R&D

Figure 1.4: Number of phase II - IV clinical trials by disease class, 2005-2007

Figure 2.5: Cost, LE and CE in metastatic colorectal cancer

Figure 2.6: Cancer drug sales in Western Europe per 100,000 inhabitants, € thousands

Figure 2.7: Avastin Uptake in E13 Countries

Figure 2.8: Erbitux uptake in E13 Countries

Figure 2.9: Breast Cancer - Cost of Innovation (20-year horizon)

Figure 2.10: Disparities in European supply of medical oncologists

Figure 2.11: Oncology brand patent expiries, September 2007-2012

Figure 3.12: The changing status of oncology products

Figure 3.13: Innovation stakeholders

Figure 3.14: Finding the right level in industry-gatekeeper partnerships

List of Tables

Table 1.1: Top 10 global therapeutic classes 2007/08

Table 1.2: Leading biologics, global sales, 2008

Table 1.3: Estimated UK costs for targeted cancer therapies

Abstract

Introduction

The emergence of a new wave of oncology products has been one of the most dramatic trends in the pharmaceutical market over the last decade. Both large and small companies are making unprecedented investments in oncology R&D, in an effort to emulate the success of new targeted therapies such as Herceptin, Avastin, Glivec, Nexavar and Erbitux.

Underpinning that success have been real improvements in therapeutic options for a range of cancers, including marked survival increments in areas of poor prognosis, such as kidney cancer (e.g., Sutent); more effective therapies, tailored to genetically defined subgroups, for widespread malignancies (Herceptin for breast cancer); and innovations that have transformed fatal into chronic diseases (Glivec for chronic myeloid leukaemia).

At the same time, success has come at a price. Not is the oncology marketplace getting more crowded, raising the bar for differentiation in a category in which many products are focusing on the same disease mechanisms, but the premium prices charged for newer therapies are stretching healthcare budgets. Increasingly cancer drugs are losing the special status that once guaranteed uptake at any cost and are coming under the same cost-effectiveness scrutiny as other components of healthcare.

In today’s payer’s market, oncology companies are being forced to re-assess their strategies and build a compelling value equation for their products that will meet the needs of a whole range of stakeholders, each with their own agenda. And they must do this while finding a way to recoup R&D costs from niche products without the patient volumes that have driven blockbuster brands in the past.

Key findings

• Worldwide sales of cancer drugs are forecast to increase at a compound annual growth rate of 12-15% from 2008, reaching US$75-80 billion by 2012. That would represent almost double the projected growth rate for the pharmaceutical market as a whole over the same period.
• At the same time, growth of the category is expected to slow over the next five years, with a diminishing contribution from the existing top oncology markets - the US, France, Germany, Italy, the UK and Spain. These countries accounted for 71% of oncology product sales worldwide in 2007. By 2012, however, their share of overall sales could be down to 65%.
• Increased cost-sensitivity among payers, market crowding and the loss of cancer’s ‘special status’ will make the market much for challenging for established oncology players and new contenders over the next few years.

Key features of this report

• Detailed analysis of the new forces driving growth in the worldwide oncology market.
• Overview of the cost pressures on healthcare systems and growing recourse to health technology assessment that are complicating market entry for new cancer drugs.
• Analysis of NICE decisions on premium-priced oncology products, the wider political context in which these decisions are taken, and what they could mean for oncology players in other markets.
• Detailed exploration of how a multi-faceted value proposition needs to be constructed for new cancer therapies, including survival benefits, cost-effectiveness and more personal components such as quality of life.

Use this report to

• Detailed understanding of the new growth drivers in the world oncology market and the emerging threats to continued growth
• Insight into how healthcare systems are evolving in their efforts to manage cost inflation and how these changes present significant challenges to oncology market growth.
• Compare approaches to health technology assessment in key markets such as the UK and the US; understand how these raise the bar to entry for new oncology products.
• Detailed insight into the different components of value that will enable new cancer therapies to carve out niches in the new payer-dominated environment.

Discover

• What will be the market trend for oncology products in the years to 2012 and beyond?
• How has the treatment paradigm for oncology changed in terms of targeted therapies, niche indications and payer influence?
• What are governments, HTA agencies, health insurers and other influencers/payers in key markets such as the UK and the US doing to address budgetary pressure from pharmaceuticals in general and new oncology products in particular?

Get Full Details About This Report >>

About MarketResearch.com
MarketResearch.com is an online aggregator selling over 250,000 market research reports, company profiles and country profiles from over 650 research firms. Our reports will provide you with the critical business and competitive intelligence you need for strategic planning and marketing research. Coverage includes the US, UK, Europe, Asia and global markets.