By Dr. Andrée K Bates, March 2009
The launch period for a new Branded Pharmaceutical is a critical time for Pharma companies. In fact, in today’s challenging environment, brand launch can be the key to long-term success, or the start of a disappointing return. However, negotiating a successful brand launch is a difficult task, one in which Brand Marketers can easily become overwhelmed.
To navigate brand launches and effectively plot for brand profit, companies need to engage in some key behaviors. To ensure that all pre-launch planning acts as a foundation for growth and boosted business, they need some secret weapons at their disposal. In this article, we reveal the tools for launch triumph.
WHY IS LAUNCH SO IMPORTANT?
While the Industry is spending on R&D in record numbers and increasingly recognizing the power of marketing to drive sales, we’re still struggling. To understand why brand launches are growing in importance and increasingly seen as a salvation for Pharma companies, we must fully understand the key challenges of today’s Pharma environment:
SLUGGISH R&D
Spending on research and development has steadily increased in the last decade, but at the same time, productivity has dropped dramatically. While companies throw more money at the R&D Department, the prices required to bring a new product to market and to see it through FDA approval have skyrocketed. Only the giants that can afford to take a drug all the way from discovery to commercialization endeavor to do so, and R&D has become sluggish, with fewer products in and out of development.
STAGNANT ROI
The cost to bring drugs to market is increasing more and more. However, the return on this R&D investment, and the effectiveness of the sales forces commissioned to sell the final product, is staying the same or declining.
INCREASED COMPETITION
Another major factor in the lack of return on R&D investment and reduction of blockbusters, is the intensifying competition in the field. Companies are looking to each other to discover their peers’ solutions and secrets to R&D success. At the same time, increased competition means reduced exclusivity periods. While a drug launched in 1965 could enjoy several decades’ worth of exclusive market domination, drugs launched in the last few years have mere months before competition shows up. And, of course, there are Generics. With a competitor boasting equal product quality and safety but reduced prices, Big Pharma is finding it hard to compete.
So where does that leave us? One of the methods companies have seized upon to improve their lot is recognizing and capitalizing on the importance of product launches. The companies that launch more - and launch them in bigger, more expansive, more successful ways - can hope for a better future. However, a successful launch is not simply about the moment of launch. To leverage product launch into a business-sustaining product, launch must be exquisitely planned.
KEY SUCCESS FACTORS FOR LAUNCH
Launch success is integral to a brand’s overall success and to the company’s continuing viability. What makes for a successful launch? Activities like early marketing planning; looking ahead to regulatory issues; plotting lifecycle management from the point of inception. But what also creates a successful launch are the attitudes and working behaviors that prime a company to think creatively, plan effectively and engender success.
A study by Best Practices LLC of 20 blockbuster products from 15 companies can help us summarize these key organizational best practices when it comes to creating optimal launches:
- A successful launch comes after launch planning that spans over multiple years.
- A successful launch requires major multi-tasking and collaboration. The Marketing Team for successful launches must coordinate highly disparate activities over a long time period, and synchronize across departments, thought leaders, spread-out facilities and global enterprises.
- A successful launch requires the integration of marketing and R&D.
- A successful launch requires meticulous resource allocation. Resources include people, dollars and time, and they must be assigned appropriately to build big launches for high-potential products.
- A successful launch effectively leverages thought leaders. Thought leader insights should be gathered prior to the establishment of clinical development protocols, enabling product development to be shaped to match market needs.
- A successful launch utilizes broad market research. In order to differentiate and deliver the value necessary for a big splash, Marketers have to understand market dynamics and ensure clinical development is attached to market needs.
- A successful launch builds on sales force support. Is the sales team convinced? Do they understand and have strategies for leveraging the value propositions of the new product? Are they ready from Day 1? Creating and maintaining buy-in from the sales team is absolutely critical for launch success.
With so much to think about, and so many tasks that can seem insurmountable, Pharmaceutical Marketers may feel overwhelmed. However, with a secret weapon at their disposal, the entire pre-launch planning can go smoothly and successfully.
THE SECRET WEAPON: ANALYTICS
No matter how much you plan ahead, new drug development is inherently risky in today’s environment. Increasingly, Pharma Managers and Marketers need a way to assess the potential for a new product, and the likelihood of success upon launch. The best way to plan is with the support of comprehensive market evaluation, modeling, forecasting and simulations that help marketing decision-making before and during launch. Analytics models can provide the insight on what drives your target consumers, and help predict actual launch results.
Throughout the multiple phases of pre-launch planning, sophisticated analytics, like the Eularis 94.8 System, can help you answer key questions, supporting your process and removing the dangerous uncertainty that can doom your product. Used together, analytics throughout pre-launch can help companies:
- Quantify the potential impact from each marketing activity before launch with specific allocations.
- Evaluate which messages will have the most impact on actual prescribing.
- Reveal how, when and where to spend your budget for the best results.
- Forecast brand performance at launch based on the current situation.
- Provide a ‘What If’ forecast showing the impact of any specific marketing changes.
Throughout every phase of pre-launch, analytics can provide the powerful predictions and planning aids that result in optimal launch:
- Analytics in Early Pre-launch Planning can help you answer questions about key market drivers, competitor strengths and weaknesses, positioning and price points, and optimal resource allocations.
- Regulatory Planning can help you answer questions about the effects of clinical trial data, market share with clinical trial results and regulatory approval.
- Late Stage Pre-launch Planning can help you answer questions about key messages to drive brand growth, effective positioning, and potential impact from marketing activities, global launch timing and market share predictions.
ANALYTICS IN ACTION
CASE STUDY 1
For a demonstration of the power of analytics in pre-launch planning, consider the case study of Reyataz (atazanavir), a direct-acting Antiviral initially indicated for the treatment of HIV. Reyataz conducted analytics at 3 time periods pre-launch to understand optimal clinical trial data, optimal positioning and brand potential, market drivers, messages and ideal budget allocation in order to be prepared for a rapid launch and rapid uptake. The drug was first approved in the U.S. through priority review on the 20th of June 2003 and received a centralized EU approval 8½ months later. Reyataz had market exclusivity in the U.S. through to the 6th of July 2007.
The drug achieved sales of $248 Million in its first full year on the market, Q3 2003 to Q2 2004. Reyataz’ initial market growth was driven by its positioning as an equivalent therapy to class leader efavirenz and old standard nelfinavir. Reyataz generated global sales of $931 Million in 2006, a year-on-year increase of 33.8%. Viread, another new HIV therapy first launched in October 2001 had no head-to-head trial data and suffered disappointing sales. Reyataz’ quarterly sales surpassed those of Viread in Q4 2005, despite being launched 7 quarters later. The results speak for themselves in the sales figures.
CASE STUDY 2
In another case of analytics aiding pre-launch planning, AstraZeneca decided on a 1 year pre-launch strategy for their new product, Nexium (for the treatment of Acid Reflux Disease). This included an examination of the core messages having most impact for the category and the promotional activities having most impact on Physicians’ behavior when prescribing.
The Brand Team conducted analytics in 2 time periods prior to launch (one at 12 months and one at 6 months prior to launch) and, thereafter, at 6 monthly intervals. In conducting these analytics in 2 time periods pre-launch, the brand team was able to understand the vulnerabilities of its competitors and position itself in the best possible way.
The team also understood the core brand market share potential based on its own clinical trial results which were input into the Eularis 94.8 System. It was then able to focus on positioning messages with potential to give most marked increase in market share and plan its marketing effort to match the areas recommended by the analytics for maximum growth. As a result, the brand had a 3.3% market share at launch and a strong growth pattern.
Between launch and 6 months, the activity was tweaked to incorporate the findings from the 94.8 Analytics at launch and adjustments were made to the marketing effort to areas the 94.8 Analytics recommended would provide maximum growth. AstraZeneca trained reps to do detail with the emphasis shown in the 94.8 Analytics and the budget was allocated according to the budget mix recommended by the 94.8 Analytics System.
6 Months post-launch, market share had grown to 10.3% and it was still on track for rapid growth and, yet, AstraZeneca continued to use the Eularis 94.8 Analytics System to grow the brand further.
Market share came in at 3.3% within 1 month post-launch and had more than tripled very quickly to 10.3% by month 6 by following the 94.8 System’s recommendations. It was redone every 6 months thereafter to ensure new market environment and validated perception factors against the competitors were constantly taken into account for continuous refinement and growth in market share.
The brand continues to be a market leader in this category and the team has consistently used the analytics since pre-launch in that market.
CONCLUSION
The environment for Big Pharma today is tough. However, while the pressure for launching new products is higher than it has ever been, new strategies and tactics are available to plan effectively and plot for profit.
Most important to remember for pre-launch planning is the secret weapon savvy marketers rely on. Sophisticated analytics, like the Eularis 94.8 Analytics System, can help companies answer key questions throughout each stage of pre-launch planning, ensuring the best strategies and most informed tactics. Analytics can help from beginning to end of the planning process, and even provide a foundation for management throughout a product’s lifecycle.
What the future holds for Pharma companies is uncertain. However, company leaders ready to pro-actively plan for success - to continue to innovate, and to rely on the significant power of marketing to boost product launches, sales and profits - will help Pharma survive and thrive.