From Blockbuster to Nichebuster
Scope
Report Highlights
Reasons to Purchase
Table of Contents
- CHAPTER 1 EXECUTIVE SUMMARY - page 4
- Introduction - page 4
- Scope and coverage of this report - page 4
- Key findings from this report - page 5
- CHAPTER 2 IS THE CHANGING R&D LANDSCAPE HASTENING THE END OF THE BLOCKBUSTER? - page 10
- The R&D landscape is changing - page 10
- Does a blockbuster-driven growth strategy stifle innovation? - page 11
- Return on R&D investment plummets while drug sales soar - page 11
- But is R&D productivity really falling? - page 12
- Big Pharma's R&D spending clout can shape the industry's R&D focus - page 13
- Does a blockbuster-driven growth strategy stifle innovation? - page 11
- Why has the drug industry relied on blockbuster growth strategies? - page 14
- Investors require double-digit growth - page 15
- Blockbuster revenues are needed to help fund soaring drug development costs - page 16
- The blockbuster growth model has weakened - page 18
- Blockbuster-driven companies are open to significant risk - page 18
- The market disincentivizes me-too development - page 19
- Blockbusters face significant generic threat - page 19
- Blockbusters have a tougher time when they reach the market - page 20
- Is there a relationship between company size and R&D productivity? - page 20
- There is still a role for blockbusters, but only as one of a drugs company's growth strategies - page 21
- The R&D landscape is changing - page 10
- CHAPTER 3 MARKET CHARACTERISTICS AND THE REGULATORY ENVIRONMENT IMPACT THE SUCCESS OF THE NICHEBUSTER - page 23
- Approval pathways are accelerated for innovative therapies - page 23
- The US provides a fertile market for innovator drugs - page 24
- The US regulatory environment supports innovation - page 24
- Effective use of the 'Orphan Drug Act' drives nichebuster development - page 25
- The oncology market is the archetypal niche market target - page 26
- There are a range of strategies that are important in gaining a foothold in the selected niche market - page 27
- CHAPTER 4 NICHEBUSTERS CHANGE DRUG MARKET DYNAMICS - page 28
- Drugs companies turn to licensing to capture innovation and avoid stagnation - page 28
- Dependence on blockbusters falls - page 28
- Drugs companies turn to licensing, R&D collaborations and small-scale M&A to gain access to external sources of innovative technology and drugs - page 29
- Dependence on licensing to drive future sales is set to rise - page 30
- Targeting niche markets also encourages greater small-scale M&A activity - page 31
- A study of recent collaborations shows that big Pharma is using early-stage R&D collaborations for capturing innovation - page 31
- A greater number of drugs need to be approved to support revenue generation: the pressure on regulatory bodies grows - page 33
- Nichebusters help to drive the emergence of targeted therapies - page 33
- A burst of targets and the emergence of technologies that accelerate lead drug development are driving targeted therapies - page 34
- Nichebuster development impacts the dominance of specific therapy areas - page 34
- Targeted therapies have fewer side effects than traditional therapies - page 36
- The use of diagnostics drives clearer market segmentation, which has a number of advantages - page 37
- Personalized medicine requires greater health informatics - page 38
- Business model evolution is required to capitalize on the nichebuster model - page 38
- Different sales and marketing strategies are required for nichebusters: prioritizing cost-effective targeting of specialist physicians is needed for successful niche sales and marketing - page 38
- The switch towards making marketing strategies customer-focused will help niche drug marketing - page 39
- Fully-integrated pharma companies move into niche targeting: a case study on Baxter's strategy to penetrate the haemophilia market - page 39
- Companies developing nichebusters also need to modify R&D strategies - page 40
- Different sales and marketing strategies are required for nichebusters: prioritizing cost-effective targeting of specialist physicians is needed for successful niche sales and marketing - page 38
- Big Pharma is adopting a range of strategies to harness innovation to support the transition towards the nichebuster model - page 42
- Drugs companies turn to licensing to capture innovation and avoid stagnation - page 28
- CHAPTER 5 APPENDIX : BIBLIOGRAPHY - page 44
- References - page 44
- Publications and online articles - page 44
- Datamonitor resources - page 46
- Conference information - page 46
- References - page 44
- List of Figures
- Figure 1: The bias towards a blockbuster growth strategy contributes to the inverse correlation between R&D productivity and sales - page 11
- Figure 2: The number of priority approvals has risen consistently over the last 40 years - page 13
- Figure 3: Merck has gone from needing no blockbusters in 1991 to maintain double-digit sales growth to needing the equivalent of more than two by 2005 - page 15
- Figure 4: A variety of different studies have shown that the cost of R&D has increased over time - page 17
- Figure 5: There is an inverse correlation between company size (defined by sales) and R&D productivity - page 21
- Figure 6: Early-stage collaboration type split by therapeutic focus, October 2002 - September 2004 - page 26
- Figure 7: Dependence on blockbusters generated by top-5 drugs companies is set to fall significantly from 2004-2010 - page 29
- Figure 8: Discovery-stage licensing by both top-5 and top-55 companies is set to generate a greater percentage of forecast sales than later-stage licensing - page 30
- Figure 9: Early-stage collaboration deals are focused on lead product and/or target identification and/or validation, October 2002-September 2004 - page 32
- Figure 10: Therapy areas dominated by targeted therapies are the leading market growth drivers - page 35
- Figure 11: Immune disorders and inflammation dominate R&D focus, based on a snapshot of the current patent situation - page 36
- Figure 12: Advate successfully becomes market leader in France - page 40
- Figure 13: GSKs CEDD model is designed to mimic smaller-scale biotech companies - page 41
- Figure 14: Roche has a strong 'Networked Pharma' model - page 42
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