Thursday, February 10, 2005

Pharma strategies of line extension and flanking

from PRnewswire:

More than $80 billion in blockbuster drugs will face patent expiration and generic competition by 2008.

One source of hope for pharmaceutical companies lies in the release of extension products. If a company can introduce an extension, such as an extended release version for the drug, six months or a year before an existing drug’s patent expires, it has a chance to shift patients to the new, patent- protected drug. If this strategy is successful, the company can retain market share even after generic copies of the original drug reach market. Without a line extension, companies risk losing 80% or greater market share to less expensive generics.

Another source of hope is flanking. Flanking generics involves brand-name drug companies signing licensing agreements with their generic competitors in order to establish a manufacturer-distributor relationship. According to a new industry report from pharmaceutical business intelligence firm Cutting Edge Information
( ), this strategy enables branded companies to capture a share of the generic market -- via royalty payments from generics distributors -- after their drugs’ patents expire[!], and allows them to keep manufacturing facilities running at capacity.

Cutting Edge Information’s report, "Combating Generics: Pharmaceutical Brand Defense," combines qualitative research with quantitative surveys, as well as over 70 metrics to ensure your company will move ahead of the competition.


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