Non-members: Click here to review a complimentary excerpt from "Resourcing a Successful Product Launch: Activity Investments"
The launch paradigm for new pharmaceutical products has evolved considerably over the past decade. To gain a foothold in the highly competitive marketplace, launch leaders can no longer rely on past experiences when budgeting for key product launch activities.
To assist biopharma leaders in developing competitive launch and pre-launch activity budgets, Best Practices, LLC undertook benchmarking research that examined the cost of key launch activities for launch year and the three years preceding launch.
In particular, the study benchmarks the average cost for 12 key marketing, education and market access activities for a new pharmaceutical product launch, by launch year and product type. Launch leaders can use this study to compare their budgets for key launch activities with current industry benchmarks.
Data in this study is presented for the following segments: drug type, launch year, market entry position, peak annual revenue projection, targeted physicians and therapeutic area.
- Launch Activity Investment Benchmarks
SAMPLE KEY METRICS
- Total U.S. investment for pre-launch activities in four different budget years: Launch Year, Year -1, Year -2, and Year -3. Budget numbers include all resources invested in promotional, educational & market-access activities, excluding only clinical trial costs.
- Investment for products with projected peak revenue of $1 billion or less for the launch year and the three years preceding launch.
- Investment for products with projected peak revenue of more than $1 billion for the launch year and the three years preceding launch.
SAMPLE KEY FINDINGS
- On average, study participants spend the most on Agency Fees (excluding DTC) during launch year.
- For differentiated products entering an already established market, physician education receives the highest investment for launch year as well as one year preceding launch.
This research engaged 34 marketing & commercial leaders from 27 leading pharmaceutical, biotech, and life sciences companies. Eleven study participants represent large pharma organizations, while the remaining benchmark class represent medium or small companies.