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In the highly competitive world
of pharmaceuticals, the ultimate trump card is a drug with
superb lifecycle potential. So, what is the cocktail for
lifecycle success?
Answer:
mix a strong patent position with potential for new indications,
unrivalled safety and efficacy claims, multiplicity of dosage
forms, and a dollop of good luck. A large pocket is also
a big help a pocket that can throw money at the all-important
promotional
spend.
Norvasc maintains no.1 spot
Pfizer's handling of its antihypertensive
Norvasc (amlodipine), first launched in 1990, is
an excellent example. Calcium antagonists are seeing their
market share in the treatment of hypertension
slip - from 25.1% in 1999 to 19.3% in 2000 according to
IMS HEALTH's World
Review .
Pfizer's Norvasc, however, is the number one drug in hypertension,
with a 34% market share in 2000 and 13% sales growth in
US dollar terms. In comparison, Bayer's calcium antagonist
Adalat (nifedipine), first launched in 1975, was
number two, with a market share of 12% but static growth.
In an interview with IMS HEALTH
Pharmaceutical
Company Profiles
in May 2001, Dr David Ebsworth, President and General Manager
of Bayer's Pharma Business Group, admitted, "Pfizer has
been very successful with Norvasc because they have spent
a lot of money and created a high noise level Bayer has
not had that luxury."
Adalat lost its patent in 1985.
Bayer has therefore done a remarkable job in milking its
lifecycle. Ebsworth told IMS HEALTH that a number of factors
contributed to Adalat's success:
- ability to recognise emerging
indications (initially a treatment for angina, it became
apparent that Adalat was even more effective in hypertension)
- dosage flexibility it
has become a once-daily product, having started off
being taken three times a day
- geographic expansion it
is established in over 100 countries.
GSK says promotional spending
key...
Dr Jean-Pierre Garnier, CEO of
GlaxoSmithKline,
highlights the power of promotional spending. Referring
to GSK's corticosteroid Flovent/Flixotide (fluticasone),
launched in its first European market in 1993, Garnier told
Pharmaceutical Company Profiles that weighty promotional
spending could capitulate changes in prescribing habits.
US doctors, contrary to their
European counterparts, have been slow in adopting the use
of corticosteroids in the treatment of asthma. Specifically,
they have been loath to embrace the theory that breaking
the cycle of inflammation improves patient outcome. GSK,
by advertising directly to patients, got them more interested
in their treatment.
"We think this has accelerated
the many discussions between the patients and the physicians
and I think precipitated the adoption of corticosteroids
in asthma in medical practice in America. Clearly, the opinion
leaders and the medical literature have presented strong
cases that in asthma you need to treat the inflammation.
But probably, awareness of patients, through the Internet
and TV, has contributed to the more rapid acceptance," commented
Garnier.
Flixotide/Flovent
Worldwide rankings and market share
|
Year
|
Ranking
|
Market
Share
|
+LCD*
|
|
1996
|
114
|
0.1%
|
--
|
|
1999
|
32
|
0.34%
|
--
|
|
2000
|
23
|
0.41%
|
37
|
*Growth in local currencies
Source: World Review 2001
...while AstraZeneca goes
for efficacy
Demonstrating improved efficacy
is a powerful lifecycle driver. Dr Hamish Cameron, Vice
President and Head of Cardiovascular Therapy Area at AstraZeneca,
told IMS HEALTH that the angiotensin II antagonist Atacand
(candestartan cilexetil), another antihypertensive, is "a
flagship product for AstraZeneca". The company is underpinning
the lifecycle of Atacand, and challenging market leader
Cozaar (losartan), from Merck & Co. In 2000,
this had a market share of 39.9% (dollar growth of 19%)
versus Atacands 8.7% share (but 65% dollar growth rate).
The CLAIM study is investigating
the efficacy of Atacand and losartan in reducing blood pressure
in hypertensive patients. According to Cameron, "CLAIM
will give Atacand a boost as best in class. Moreover, via
a series of other studies AstraZeneca is assessing the whole
lifecycle of Atacand." For example:
- use in elderly hypertensives
- patients with congestive
heart failure intolerant to ACE inhibitors
- and diabetic retinopathy
(the latter highlighted as an area of unmet medical
need).
"Atacand has one of the
best lifecycle programmes in its class that should deliver
a cascade of indications over the next few years,"
stated Cameron.
The lifecycle can be milked further
by cleverly co-ordinating and marketing the benefits of
one drug within a particular therapy area with another.
AstraZeneca is doing this with Atacand and its ACE inhibitor
Zestril (lisinopril). "Zestril forms part of
a lifecycle continuum with Atacand Atacand is recommended
in the treatment of mild-to-moderate hypertension and Zestril
in severe. AstraZeneca has been able to sustain Zestril
growth while launching and growing Atacand, which flies
against the predictions of many analysts," concluded
Cameron.
Patent expiries
and sales figures for some key
lifecycle drugs
|
Brand
|
Launch
Date
|
Patent
Expiry
|
2000
sales in $m
|
|
Adalat
|
1975
|
1985
|
1,173
|
|
Atacand
|
1997
|
2011
|
293
|
|
Cozaar
|
1990
|
2007
|
1,077
|
|
Flovent/Flixotide
|
1993
|
2001
|
1,307
|
|
Norvasc
|
1990
|
2003
|
3,341
|
|
Zestril
|
1989
|
1999
|
1,130
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Source: IMS HEALTH LifeCycle
, MIDAS
Aventis starts at the beginning
Product lifecycle is not just
concerned with post-launch phenomena: it begins at the discovery
phase of research. Richard Markham, CEO of Aventis, told
IMS HEALTH's Pharmaceutical Company Profiles that in choosing
early R&D projects, the effect of the product on total
healthcare cost is becoming an increasingly important selection
criteria:
"The most efficient quality control
is to ensure that the process is right from the beginning
and that the product does not have any flaws. The second
choice is to catch the flaws at the end of the production
line. We need to be investing in products whose benefit
to society is obvious. Companies will no longer be able
to overwhelm the market with large sales forces and make
third, fourth or fifth entries interesting such a strategy
will not be sustainable in the long run."
The power of the industry to
increasingly exploit drug lifecycles is evidenced by the
fact that in every single year between 1994 and 2000, despite
the concomitant decline in the number of new products, the
growth rate for the top 50 drugs exceeded that of the total
pharma market. Research suggests that products peak much
later than realised 14 years is the current average for
successful drugs. As stated above, Zestril is already off
patent, but this has not prevented AstraZeneca from extracting
every last drop of usefulness and profit from it.
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