Potential pharmaceutical blockbusters, on average, spent more than $225 million on marketing between Phase III and their first year on the market, according to a new report from Cutting Edge Information http://www.PharmaLaunch.com.

The report, “Pharmaceutical Product Commercialization: Phase III to Post-Launch Resource Allocation” analyzes marketing spending and staffing for 16 brands, including six blockbusters and ten smaller drugs.

When companies expect products to make less money, they spend less on their launches. Marketing budgets averaged less than $90 million for drugs slotted for peak annual sales between $500 million and $1 billion. For niche brands treating smaller markets, average commercialization expenditures fell below $50 million.

Study author Eric Bolesh points out that it’s critical to look past average figures to the underlying pressures on each individual drug. “Each brand allocated resources to overcome a unique set of challenges,” Bolesh said. “Sales projections dictate investment, but brand strategies and market realities shape the commercial campaign.”

One relatively inexperienced company, for example, developed a drug that proved very successful in clinical trials. The organization, however, did not have deep pockets to support the drug that way it wanted to – during Phase III, the brand team numbered only ten people and spent a little more than $5 million, both extremely low figures. To make matters worse, the market already contained larger, established drugs.

To overcome these obstacles, the company invested in thought leader development and signed a co-promotion deal with a larger firm. As a result of these moves, the company launched a $30 million advertising effort in the drug’s first year on the market.

The report, available at http://www.PharmaLaunch.com, includes the tools necessary to command higher budgets and greater staff support during product development:

• Detailed phase-by-phase breakdowns of spending and staffing levels for 16 major brands
• In-depth analysis into allocations for thought leader, advertising, branding and market research
• Resource allocation data for blockbuster, mid-level and niche products
• Strategic analyses of brands’ answers to competitive, clinical and internal infrastructure challenges

To view a summary of this report, visit http://www.PharmaLaunch.com. For more information on this report or to learn about other research being conducted by Cutting Edge Information, contact Eric Bolesh at Eric_Bolesh@cuttingedgeinfo.com or 919-433-0214.

 

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