Trends in Pharmaceutical Portfolio Management - Strategies to maintain profitability despite adversity

With growing competition, Pharma companies are under increased pressure to deliver additional value for key stakeholders through their portfolios. Companies with comprehensive portfolios offering more to physicians, patients, payers and pharmacists will have the competitive edge.

Report Highlights
Achieving a balanced portfolio in terms of new product development, lifecycle management and business development and licensing is key to reducing risk and growing franchise sales. With patent expiry of key blockbuster drugs approaching lifecycle management is very popular but over reliance on this approach can damage long-term prospects

Niche and specialty therapies are gaining ground over primary care portfolios, but growing competition and a tougher pricing and reimbursement environment do not make this an easy direction to follow

Payers have greater power than ever, and are increasingly influencing physicians' treatment choices. Therefore, pricing and reimbursement analysis needs to be incorporated into portfolio revision process as early as possible in drug development.
[Studien Infos ausblenden]

CHAPTER 1 EXECUTIVE SUMMARY 4
Scope of the report 4
Key findings 4
CHAPTER 2 INTRODUCTION TO PORTFOLIO MANAGEMENT 10
Pharma industry is facing a range of challenges impacting portfolio management 11
Pharmaceutical R&D productivity is declining 12
Regulatory approval criteria are becoming more stringent 13
Cost-containment pressures are increasing 13
Shorter drug lifecycles 14
R&D versus marketed product portfolio management 17
R&D portfolio management 17
Marketed products portfolio management 19
Fit between R&D and marketed product portfolios is important 21
Portfolio fit with long-term company strategy 22
CHAPTER 3 TRENDS IN PORTFOLIO MANAGEMENT 25
Trends in portfolio offerings 26
More for physicians 27
Case study: Astellas - bridging its transplant and antifungal portfolios 27
Best for patients 29
Case study: Shire's ADHD portfolio 30
More for patients 32
Case study: GlaxoSmithKline - providing more for HIV patients through fixed dose combinations 32
More for payers 34
Generic portfolio management 34
Offering both branded and generic drugs 35
Adding value through additional services 36
Case study: Pfizer's endocrine care portfolio 37
Case study: Roche's hepatitis C franchise 38
Niche specialty drugs vs primary care blockbusters 40
Diagnostics are playing a greater role 42
Who will focus on primary care markets? 43
Balancing the risk - multisource portfolio management 45
Business development and licensing versus in-house new product development 47
Sourcing drugs from partners 47
Case study: Roche - a multi-source oncology portfolio 49
Opportunistic portfolio management 52
Novartis increased presence in multiple sclerosis by acquiring marketed drugs in anticipation of new product launch 52
Portfolio revision through early dialogue with payers 54
CHAPTER 4 CASE STUDIES OF RECENT PORTOFOLIO MANAGEMENT STRATEGIES 55
Portfolio challenging scenarios - what to do when disaster strikes 56
Late-stage failure or market withdrawal 57
Safety event damages brand reputation 57
Patent expiry 58
Intensify lifecycle management activities 58
Replenish portfolio through in-licensing and co-marketing agreements or lifecycle management with a partner 60
Exit and move into a different area 62
Pfizer's failure to replace sales lost when Lipitor goes off-patent will ruin its mid-term performance - can anything still be done? 63
Torcetrapib failure and Exubera withdrawal caused further damage to Pfizer's future revenue prospects 63
Pfizer responded by entering licensing agreements and acquisitions... 65
...but its launch portfolio is still looking thin 70
Too little, too late? 71
Has the company missed out on biologics? 72
Eli Lilly - growing its diabetes franchise through partnerships with smaller players 73
Eli Lilly's collaboration with Amylin proves to be fruitful 75
A varied diabetes pipeline 76
Eli Lilly's pipeline development continues to rely on small partners 77
Byetta LAR - a low-risk option expected to drive future growth 78
Teplizumab 80
Three drugs are in development with Transition Therapeutics in addition to a small number of in-house candidates 80
Inhalable insulin development discontinued following Exubera flop 81
GlaxoSmithKline and Avandia - diabetes franchise at risk? 81
A rich and varied pipeline developed both alone and with partners 84
Biogen IDEC's multiple sclerosis franchise 86
Biogen IDEC's marketed and pipeline agents within its multiple sclerosis franchise span a range of mechanisms of action and modes of delivery 89
Licenses and collaborations are used to expand the franchise 90
Avonex 91
Indication expansion and new clinical data grew Avonex's market share 91
Tysabri 92
Rituximab 94
Other pipeline agents 95
AstraZeneca - company turns to serial acquisitions and internal R&D reshuffle following Phase III failures and market withdrawals 96
Iressa 97
AstraZeneca's cardiovascular portfolio had setbacks with Exanta's withdrawal and AZD-7009's discontinuation 98
Galida 99
Externally developed candidates also bomb 100
Acquisitions 101
Acquisition decisions reflect a long-term strategy of entering the biologics arena 101
CHAPTER 5 BIBLIOGRAPHY 103
Publications and online articles 103
Conference literature 106
Datamonitor reports 106
APPENDIX 108
Glossary 108
[Inhaltsverzeichnis ausblenden]

Table 1: Advantages and disadvantages of using lifecycle management to plug revenue gaps due to patent expiry and lack of replacement products 59
Table 2: Pfizer entered a number of licensing deals in 2007 and the first half of 2008 65
Table 3: Pfizer has acquired five companies since January 2007 69
Table 4: Pfizer's launch portfolio, 2007-2013 70
Table 5: Eli Lilly's type 2 diabetes franchise, 2008 74
Table 6: Eli Lilly's antidiabetics R&D portfolio, 2008 76
Table 7: GlaxoSmithKline's R&D pipeline in diabetes therapeutics, 2008 82
Table 8: AstraZeneca made several acquisitions in 2006 and 2007 101
Figure 1: Pharmaceutical portfolio management is facing a range of challenges, 2008 11
Figure 2: The number of NMEs approved by the FDA, has fallen despite growing R&D expenditure, 1990-2006 12
Figure 3: Payers are introducing a range of measures designed to curb drug spending 14
Figure 4: Product lifecycles are getting shorter 15
Figure 5: Various factors are impacting brand erosion at patent expiry 16
Figure 6: Marketed products versus R&D portfolio management 17
Figure 7: Technical, commercial and strategic considerations impact portfolio decisions 18
Figure 8: Recommendations for successful R&D portfolio management 19
Figure 9: Effective marketed products portfolio management can provide value in three different ways 20
Figure 10: Ideally products in a portfolio should complement and not compete 21
Figure 11: Companies operate on the basis of a sliding 10-year window 22
Figure 12: Corporate strategy impacts portfolio management and vice versa 23
Figure 13: Portfolio offerings can be targeted at providing more for patients, payers or physicians 26
Figure 14: Astellas's antifungal, antibacterial and transplant portfolios are aimed at critical care physicians 28
Figure 15: Shire is committed to developing a range of treatments for ADHD patients 31
Figure 16: GlaxoSmithKline's HIV portfolio provides a continuum of care for the patients, 1998-2016 33
Figure 17: A range of services aimed at physicians, nurses and patients can add value to the portfolio 37
Figure 18: Pfizer's endocrine care portfolio is optimizing its service offering to differentiate the product 38
Figure 19: Roche enhanced the competitiveness of its hepatitis C franchise by providing support services 39
Figure 20: Advantages and disadvantages of niche specialty drugs vs primary care products 40
Figure 21: Advantages and disadvantages of theranostics 42
Figure 22: Advantages and disadvantages of LCM, NPD and BD&L 46
Figure 23: Advantages and disadvantages of acquiring new products through different types of partnerships or M&A 48
Figure 24: Roche's relationship with Genentech and Chugai is critical for the development of its oncology portfolio 50
Figure 25: Several strategies can be employed to fill portfolio gaps when a challenge is encountered 56
Figure 26: Gilead and Bristol-Myers Squibb combined some of their HIV drugs into FDCs to strengthen their portfolio offering 61
Figure 27: Drivers and resistors of exiting a therapy area following a portfolio challenging event 62
Figure 28: Eli Lilly's diabetes portfolio aims to satisfy a range of stakeholders 77
Figure 29: Advantages and disadvantages of Eli Lilly's portfolio development in collaboration with smaller partners 78
Figure 30: GlaxoSmithKline's diabetes portfolio is challenged by Avandia's woes but the mid- and early-stage pipeline is well populated 84
Figure 31: Biogen IDEC's strategy for multiple sclerosis portfolio growth 87
Figure 32: Biogen IDEC's multiple sclerosis portfolio is aiming to satisfy different stakeholders' needs 88
Figure 33: Biogen IDEC's marketed and pipeline multiple sclerosis agents span a range of action mechanisms and modes of delivery 89
[Tabellenverzeichnis ausblenden]