`Industry predicts increased pressure on the branded pharmaceutical industry` says visiongain report
Released on = May 30, 2006, 4:59 am
Press Release Author = Visiongain
Industry = Pharmaceuticals
Press Release Summary = The global pharmaceutical market has entered a period of
change that could signify the start of an industry-wide economic downturn.
Press Release Body = London, UK, and San Francisco, CA; 24 May 2006: The global
pharmaceutical market has entered a period of change that could signify the start of
an industry-wide economic downturn. The pharmaceutical industry has enjoyed high
growth rates and positive outlook since its inception, and has consistently been one
of the most productive industry sectors. However visiongain’s latest report suggests
that this is ending. “The development of an ultra-competitive generic industry
together with unprecedented patent loss will see branded companies struggle”, said
visiongain pharmaceutical market analyst Tristan Heath. PLM (Product Lifecycle
Management) has been touted as a revenue saving concept, but as the report suggests,
the choice of strategy is vital.
The global pharmaceutical market is currently valued at $550 billion. However, by
2009 an estimated $78 billion of revenue producing drugs will have lost patent
protection. Generic competition is expected to take at least 50% of the market and
the consequent loss of income for the branded companies is significant. Drug
development is taking longer, R&D investment is increasing exponentially and yet NCE
approvals are static at approximately 50 per year. In this challenging market
situation, branded pharmaceutical companies are utilising aspects of PLM more
commonly associated with other industries, in an effort to boost revenue.
Although reformulation and combination products have been a part of the industry for
a number of years, OTC switching and authorised generics are examples of relatively
new additions to the PLM portfolio of strategies. The visiongain report considers
the various strategies and attempts to assess the appropriateness of each depending
on drug and market type.
A key aspect of any PLM strategy is to produce a product that provides an increased
therapeutic advantage for the patient. Each PLM strategy is designed to increase
profit for the pharmaceutical company. However, with pressure on healthcare
authorities to reduce expenditure, the justification of additional cost by improved
therapeutic value is a key aspect determining success.
Visiongain’s report – Product Lifecycle Management, 2006- assesses the PLM
strategies, listing strengths and weaknesses and analyses which drugs would benefit
from specific strategies. An overview of the patent regulations determining the
market and the potential ROI for each strategy is considered.
ENDS
Notes for editors: To receive your complimentary overview of – Product Lifecycle
Management - Please send an email to Sara Peerun sara.peerun@visiongain.com,
telephone Sara on +44 (0) 20 8767 6711 or see www.visiongainintelligence.com. Please
include your full name, title of publication, contact telephone number, email, and
details of where you saw this release. Upon receipt of this information, an overview
will be emailed to you.
Background: Visiongain is one of the fastest growing and most innovative independent
media companies in Europe today. Based in London, UK, visiongain produce a host of
business-2-business conferences, newsletters, management reports and E-Zines
focusing on the Financial markets, the Pharmaceutical, Telecoms industries and the
Defence sector.
For information on visiongain, please visit www.visiongainintelligence.com
Web Site = http://www.visiongain.com
Contact Details = 40 Tooting High Street
London SW17 0RG
2008
