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In today’s pharmaceutical industry–where the recent product launch landscape is marked by as many failures as successes—it is critical for launch teams to understand the right level of resources required to give each new product its best chance for gaining a market foothold.
The report provides current data on funding levels necessary bring a new product into the U.S. market, during the launch year and for each of the three years preceding product introduction. Brand and marketing leaders will be able to use the results of this study to identify shifts in spending priorities across the industry and to compare spending levels for their own launch preparation programs against industry averages.
Based upon a recent Best Practices, LLC benchmarking study, the report also provides qualitative insights and quantitative metrics that will help companies chart effective budget strategies and allocate funds for new brands. Specifically, the study encompasses the following topics:
Average Cost: Industry average cost for new pharmaceutical product launch in the launch year and each of the three preceding years
Primary/Specialty Comparison: Cost comparison for specialty vs. primary product launch
Budget Allocation: Percentage of budget allocated to 12 key marketing, education and market access activities during and prior to launch
Activities Timing: Timing for conducting 50+ promotional and educational launch activities
Future Allocation Trends: Launch activities expected to gain a greater share of the budget in the coming 24-36 months, and activities expected to receive reduced share
Success Factors: Top 3 success factors in new U.S. product launchOn average, launch year spend nearly equals the approximate sum of all previous years’ commercialization investments. Hence, it has become increasingly challenging for pharmaceutical companies to understand the adequate investment levels required for successful product launch in current U.S market.
The report was based on the results of a benchmarking study that included 27 executives and managers with current or recent launch experience at 23 leading biopharmaceutical companies.
About three-quarters of the participants are Directors or Vice Presidents and more than half work within marketing functions or departments. The group represented products in nine different therapeutic areas including Endocrine/Metabolic, Oncology, Respiratory/Pulmonary, Cardiovascular, Psychiatry, Pain, Ophthalmology, Obstetrics/ Gynecology, and Neurology.
Of the products represented in this report, about two-thirds are marketed primarily to specialty care physicians, and the majority was launched (or expected to launch) between 2008 and 2013. About a quarter of the products were projected to have peak annual revenue above $1 billion, while 44 percent expected the annual revenue to peak at under $500 million. Products reflected a variety of different market-entry conditions from new products in a novel treatment area to products entering a crowded market that includes generics to reformulations.
Table of Contents
List of Tables & Figures
- Launch investment benchmarks
- Investment data by product segment
- Launch activities
- Launch investment allocation
- Success factors
- Most important future activities
- Definitions used in study
Project Objectives & Methodology 4
Key Insights & Findings 5
Companies Participating in Study 9
Summary Description of Participating Products 10
Participants’ Demographics 11
Launch Investment Benchmarks Advantage 15
Benchmark Average Launch/Pre-Launch Investment 16
Launch Year Investment (Total, Specialty and Primary, Landscape in Quartiles, Etc.) 17
Spend at Year -2, -3 23
Investment Data by Product Segment 25
Peak Annual Revenue Projections 26
Total Launch Investment by Peak Revenue Category (Launch, -1) 27
Therapeutic Area Distribution and Avg. Spend 29
Market Entry Condition for New Products in Study and Avg. Spend for Each 31
Spend for Differentiated Products in Each Market Condition (Novel, Established, Etc.) 33
Launch Activities 36
Agency Fees (excluding DTC) 37
Direct to Consumer & Advertising Expenses 38
Health Economics/ Outcomes Research 39
Launch Meeting/ Kickoff 40
Managed Markets/Market Access 41
Market Research/Analytics (excluding DTC) 42
Medical Affairs 43
Patient Education/ Assistance 44
Physician Education 45
Sales Force Preparation 46
Activities Expected to Gain Funding 48
Activities Expected to See Funds Decrease 49
Launch Investment Allocation 50
Investment Allocation by Activity Category 51
Success Factors 58
Most Important Future Activities 61
Definitions Used in Study 64