Pharmaceutical Commercialization Profiles (PH216)

Driving Brand Success with Better Budgeting and Timing
Download Here
Published 2015
147 Pages
400+ Metrics
110+ Charts and Diagrams

Overcome Product Development Challenges that Exist in Today’s Saturated Commercial Markets with the Right Mix of Human and Financial Resources

Pharmaceutical firms face a number of challenges moving emerging brands through development and into today’s saturated commercial landscape. Brand teams must begin strategizing and determining commercialization spends early in the development process. In many cases, companies begin initial market assessments as early as pre-clinical development. However, commercialization committees need the human and financial resources to support products as they mature.
This report serves as a guide to pharmaceutical companies undertaking new product planning or determining brand support levels and resources during pre-clinical development to two years on the market. Research highlights how brands determine resource levels — both brand spend budgets and brand commercialization committee members.

Pharmaceutical executives in a variety of functions, including product management, product marketing, strategic management, new product planning and business development will get the following benefits from Pharmaceutical Commercialization Profiles:

  • Profiles for 28 brands — spanning multiple therapeutic areas and markets — detailing resource allocation across the product lifecycle, from Pre-Clinical to 2nd year on market.
  • Data showing size and different functions’ involvement in brand committees from Pre-Clinical to post-launch.
  • Benchmarks showing real-company examples of brand spending for specific activities (e.g. thought leader development, HEOR, medical publications strategy)
  • Timeline metrics showing companies’ completion, by phase, of brand commercialization activities, including pricing studies, packaging development and brand naming.
  • Data showing percentage of brand commercialization budget allocated to medical affairs, marketing and market access.
  • Charts depicting the relationship between brand spending and brand revenue, per phase.


Key Questions That This Study Answers

  • Does your brand team need data to justify funding for certain activities, or need evidence to spend in another category?
  • Is your company involving the right groups — at the right time — in brand commercialization committees?
  • How much does geography impact brand spending?
  • How much are you competitors spending for brand launches and support at different points of the product lifecycle?
  • Are your brands getting the best possible support — ramping up to report launch and well after market entry?
  • Do you feel that your company needs to diversify its commercialization investments? Or should come up with a better plan for making these investments?


Top Reasons to Read This Report

Create cross-functional committees to coordinate activities and mitigate challenges throughout brand development and commercialization: Developing brands require support from several functions throughout the company. As multiple teams work on the product, they must coordinate their activities and timelines to move it more quickly to market. This report examines the key components of brand commercialization throughout the product lifecycle and how to combine the internal expertise to set brand strategy and budgets.

Define pharmaceutical brand budgets early, but remain flexible to unexpected opportunities: Pharmaceutical companies determine annual brand spend based on a number of factors — including the product’s market entry, expected peak revenue and the company’s own resources. While each brand is unique, many teams draw on previous launch and support experiences to set budgets. Pharmaceutical Commercialization Profiles examines how life science organizations distribute brand spend resources to optimize commercialization and market potential during late-stage development.

Begin brand assessment and market research activities as soon as pre-clinical development: Brand assessments form the foundation for commercialization strategies as products mature. While companies can perform these activities at any time in the lifecycle, many surveyed firms first take on these assessments during early development. In some cases, brand teams begin assessing their products and commercial landscapes as early as pre-clinical development. This report includes charts detailing the percentage of companies completing specific brand assessment activities, by development phase, as well as company spending on specific brand assessment activities.

Pharmaceutical Commercialization Profiles Metrics

Chapter 1: Supporting Brand Activities Throughout the Product Lifecycle

Major Takeaways

  • Evolve functional representation on brand commercialization committees as a product progresses through development.
  • Remain flexible to meet unexpected development or regulatory delays, as well as unexpected requirements to optimize brand support.

Chapter Data
14 charts showing brand commercialization staffing, activities and spending for Pre-Clinical through Phase 3.

  • Functions represented on brand commercialization committee, by stage (Pre-Clinical through Phase 3)
  • Number of FTEs serving on brand commercialization committees, by stage (Pre-Clinical through Phase 3) and by function
  • Percentage of companies completing specific brand assessment activities, by development phase (e.g., disease state education development, HEOR, medical publications development)
  • Company spending on specific brand assessment activities
  • Percentage of companies completing specific brand strategy and planning activities, by development phase
  • Company spending on specific brand strategy and planning activities
  • Company spending on specific brand commercialization activities


Chapter 2: Resourcing Product Commercialization Through Early Clinical Development

Major Takeaways

  • Evolve functional representation on brand commercialization committees as a product progresses through development.
  • Remain flexible to meet unexpected development or regulatory delays, as well as unexpected requirements to optimize brand support.

Chapter Data
13 charts and 10 brand profiles detailing how companies resource early development brand commercialization. Throughout the chapter, data are broken down by development phase (Pre-Clinical through Phase 2).

Brand Commercialization Spending

  • Percentage of budget dedicated to specific spending categories (medical affairs, market access and marketing) by region (US and EU) and by company size
  • Percentage of budget dedicated to specific spending categories, by market entry (first-in-class vs. follow-on products), Pre-Clinical through Phase 2
  • Brand spend vs. expected peak revenue, Pre-Clinical through Phase 2
  • Percentage of change in total brand spend across early development

Brand Commercialization Profiles
These profiles examine how 10 life science companies allocate brand spend from Pre-Clinical to Phase 2. These brand spend profiles highlight resource allocation for pharmaceutical brands across multiple therapeutic areas and multiple markets. Data included in these profiles, when possible, are:

  • Product Background:
    • Company type (small pharma, Top 50 pharma or Top 10 pharma)
    • Therapeutic area
    • Product launch market
    • Launch year (in major market as well as additional launches)
    • Market entry (first-in-class treatment, follow-on product, orphan drug)
    • Number of competitors at launch
    • Expected peak revenue in specific market
  • Overall Early Development Spending:
    • Total brand spend, by phase
    • Percentage of reported brand spend allocated across specific categories, by phase (medical affairs, market access, marketing and commercial)
  • Spending By Activity, By Phase


Chapter 3: Preparing for Market Entry During Late-Stage Development

Major Takeaways

  • Align launch resources with brand expectations, market needs and other variables.
  • Track other brands’ spending patterns to understand trends and challenges.

Chapter Data
13 charts and 11 brand profiles detailing how companies resource late-stage brand commercialization. Throughout the chapter, data are broken down by development phase (Phase 3a, 3b and registration and launch).

Brand Commercialization Profiles
These profiles examine how 11 life science companies allocate brand spend from Phase 3a to registration and launch preparation. These brand spend profiles highlight resource allocation for pharmaceutical brands across multiple therapeutic areas and multiple markets. Data included in these profiles, when possible, are:

  • Product Background:
    • Company type (small pharma, Top 50 pharma or Top 10 pharma)
    • Therapeutic area
    • Product launch market
    • Launch year (in major market as well as additional launches)
    • Market entry (first-in-class treatment, follow-on product, orphan drug)
    • Number of competitors at launch
    • Expected peak revenue in specific market
  • Overall Early Development Spending:
    • Total brand spend, by phase
    • Percentage of reported brand spend allocated across specific categories, by phase (medical affairs, market access, marketing and commercial)
  • Spending By Activity, By Phase


Chapter 4: Optimizing Brand Commercialization Post-Launch

Chapter Data
13 charts and 7 brand profiles detailing how companies resource late-stage brand commercialization. Throughout the chapter, data are broken down by development phase (Launch year to second year on market).

  • Percentage of budget dedicated to specific spending categories (medical affairs, marketing, and market access), by region (US and EU), launch year through second year on market
  • Percentage of budget dedicated to specific spending categories, by market entry
  • Brand spend v. expected peak revenue
  • Percentage of change in total brand spend from launch through the second year on market

Brand Commercialization Profiles
These profiles examine how 7 life science companies allocate brand spend from launch year to second year on market. These brand spend profiles highlight resource allocation for pharmaceutical brands across multiple therapeutic areas and multiple markets. Data included in these profiles, when possible, are:

  • Product Background:
    • Company type (small pharma, Top 50 pharma or Top 10 pharma)
    • Therapeutic area
    • Product launch market
    • Launch year (in major market as well as additional launches)
    • Market entry (first-in-class treatment, follow-on product, orphan drug)
    • Number of competitors at launch
    • Expected peak revenue in specific market
  • Overall Early Development Spending:
    • Total brand spend, by phase
    • Percentage of reported brand spend allocated across specific categories, by phase (medical affairs, market access, marketing and commercial)
  • Spending By Activity, By Phase

Pharmaceutical Commercialization Profiles Report Sample

The following excerpt is from Chapter 3, Section 2: “Late-Stage Development Brand Spend Profiles.”


By the time brands enter late-stage development, pharmaceutical companies have begun to support many major commercialization and launch activities. From Phase 3a to registration and launch, companies must optimize their emerging products for market entry. However, total brand spend varies across individual products based on a number of factors. These factors include the brand’s therapeutic area, launch market and the number of existing competitors. Companies should also consider their own resources and experiences to determine optimal brand investment by developmental phase.

This section examines how 11 life science companies allocate brand spend during their launch year as well as their first and second years on the market. These brand spend profiles highlight resource allocation for pharmaceutical brands across multiple therapeutic areas and multiple markets. Data included in these profiles, when possible, are:

  • Product Background:
    • Company type (small pharma, Top 50 pharma or Top 10 pharma)
    • Therapeutic area
    • Product launch market
    • Launch year (in major market as well as additional launches)
    • Market entry (first-in-class treatment, follow-on product, orphan drug)
    • Number of competitors at launch
    • Expected peak revenue in specific market
  • Overall Early Development Spending:
    • Total brand spend, by phase
    • Percentage of reported brand spend allocated across specific categories, by phase (medical affairs, market access, marketing and commercial)
  • Spending By Activity, By Phase

The following is excerpted from the brand profile featured in Chapter 3 "Large Company Brand 3." The full report contains all 13 brands' commercialization benchmarks and accompanying analysis.

PHASE 3B RESOURCES

Figure 3.3 [figure appears in full report] shows Brand 3's marketing spending for Phase 3b. One of the most interesting items of note is the lack of spending in the categories under advertising and promotion. Interviews revealed two reasons behind the minimal spending here. First, because the company already had a product in the category, it was able to take advantage of some significant synergies. For example, there was no need to create brand new visual aids in the therapy; rather, the old aids could just be adjusted. Second, the company simply did not have time to ramp up significant promotions. The drug was acquired less than a year from its launch date.

Synergies helped the company save in areas outside of advertising and promotion as well. Because the company already had significant data on the market itself and on the competitors in the space, market research and CI expenditures were held at a minimum, for example.

Figure 3.4 [figure appears in full report] shows that speakers, thought leader development and thought leader programs played large roles in the commercialization strategy of Brand 3. Though thought leader involvement is typical, Brand 3's situation proved a bit different from the typical situation. Doctors in this arena already had vast experience and knew the various treatments well. Brand 3's team needed to convince their KOLs and those whom they speak with of Brand 3's superiority to the generics available and the other competitors on the market.