Pharmaceutical Product Life Cycle Management Strategies

In this video we will discuss

pharmaceutical

life

cycle

manager

strategies

. Product

life

cycle

is defined as the path of a

product

from the beginning of its birth to the last phase of its death based on a view of sales revenue. The stages of the

product

life cycle are similar to those of humans as time passes the product goes from infancy grows and reaches maturity it will eventually decline and die there are four stages in the product life cycle introduction growth maturity and decline by plotting revenue on the y-axis and time on the x-axis the product life cycle curve is as shown on the screen this curve is divided into four phases introduction growth maturity and finally decline when it comes to

pharmaceutical

s the curve is a little different there are three distinctive stages in the life cycle of a new drug the research and development stage from the discovery of the drug to its launch on the market the period of time between its launch and the loss of exclusivity in the market the period post the loss of market exclusivity when generics can enter the market we will explore the three stages early middle and late in more detail during the initial stage the new drug undergoes certain intensive clinical and preclinical testing at this stage the company invests money without generating sales since the drug has not yet been launched on the market the company begins pre-launch activities the market exclusivity period is the period of time between the market launch of an innovative medicine and the launch of its first generic .

The company applies for a patent shortly after the discovery of the drug. From that moment on, the company has a 20-year patent for the product. The R&D phase takes several years, so by the time the product is approved and available on the market, the patent may be close to running out. Research by Duke University economist Henry Grabovsky in 2016 calculated the average market exclusivity period for new drugs based on In this report, the average market exclusivity period is 13.5 years. During the intermediate stage, the drug is launched on the market and the company begins to make profits.

As soon as the product is introduced in the market, the company starts activities such as creating awareness and informing current and potential customers. about the product once it enters the growth stage the goal is to achieve the largest possible market share and maximize turnover when growth is no longer possible the product matures and the company focuses on maintaining its market share when the market share of market and profits begin to decline the company consolidates in the won market segments and tries to minimize expenses when the patent expires the companies seek offensive

strategies

to combat generic competitors and retain market share the ultimate goal of any company is to extend the life cycle over a longer period of time the question What are the main strategies used by pharmaceutical companies to extend the life cycle of an innovative drug?

An interesting article published in the Journal of generic medicine explored the strategies of branded pharmaceutical companies to overcome generic competition. These strategies are flanking and shifting to rx2 OTC. talk about each strategy in detail evergreen is a strategy that involves line extensions or the launch of a next generation version of the current drug within the evergreen strategy brand teams try to switch patients to the newly patented drug before When the patent on the original drug expires, switching patients to the new drug minimizes the loss of market share and makes it less attractive for generic competitors to enter the market. the most successful strategy employed by brand name companies to maintain market share.

AstraZeneca's switch from prilosec to next-generation nexium is a successful implementation of the renewal policy. strategy the first patent for omeprazole was filed in 1979 nine years later prilosec was launched on the market in 1996 prilosec became the best-selling drug in the world in 2006 point three billion dollars. dollars its patent should have expired at the end of 2002 nexium the next generation drug developed from prilosec proved to be more effective in treating patients Astra Zeneca submitted the drug to the FDA early enough to ensure its approval before the patent expired prilosec patent in 2000 Astra Zeneca launched nexium before the prilosec patent expired, the company transferred 40% of prilosec patients to next-generation nexium and achieved 9% growth in its gastrointestinal franchise in 2001 alone.

Patent protection for nexium, which was an improvement over prilosec, expired in 2014, this means 35 years after the original prilosec patent was obtained, to successfully implement the permanent renewal strategy, the company must make patients use the new medicine before the launch of the generic version of the first generation product, the next generation medicine must offer a new and better benefit than the current medicine a certain degree of similarity to the popular and trusted original brand is also important . AstraZeneca made nexium purple in color and it looks very similar to the original prilosec sheepskin plow. did not properly implement the perennial claritin strategy achieved very good sales figures to maintain With these figures the company planned to replace it with the next generation clare in x delays in the US.

The FDA approval for Claire and X allowed generics to enter the market before switching patients from claritin to clarinets. As a result, Claire and The second strategy is to flank the generics. The flanking strategy involves entering the generic market. In this strategy, Brandon's pharmaceutical company develops its own generic and markets it through its own subsidiary or another licensed company as soon as the patentability of an innovative drug expires. Generics enter the market. Generics attract some new patients and the branded company loses a considerable number of patients to the generic market. By launching a generic version of the brand at a competitive price, the company can keep patients who will not be switched and gain the largest share possible.

For those patients who chose generic products, the company can execute the companion strategy in one of three ways. The first option is to sell the generic drug by the company itself or through its generic arm. The second option is to sell the medication to a third party. a generic player to market it under that company's brand name the third option is to authorize a generic company to manufacture and market its own version of the drug Fiser led this strategy by launching authorized generic versions of its products through its authorized generic subsidiary greenstone the third strategy is to switch from prescription to over-the-counter this strategy is appropriate when a brand name drug whose patent is about to expire obtains FDA approval for sale without a prescription the change will make the market unattractive for generics AstraZeneca achieved retaining 40% of patients on prilosec by introducing them to nexium soon after, prilosec gained OTC status preventing generic competition from flooding the market to take over AstraZeneca's revenue and market share to successfully shift from a prescription product to an over-the-counter one, should have a competitive advantage over existing available medications and inherit a high level of brand awareness. between current users and pharmacists, with this you have reached the end of the video, thank you for watching for more resources on farmers marketing, visit our website, accom farmers market.