Using the Buddy System: Finding a Quality Partner for Generics and Counter-Generics Strategies
Ending product patents and generic competition are very real challenges in the pharmaceutical landscape. With limited counter-generics strategies, partnerships with generics companies can be an effective solution for organizations looking to maximize lifetime revenue for their branded products. While these tactics can have great returns, they do require a high-level of investment and foresight—making them difficult to execute.
A recent study on counter-generics solutions found that 35% of surveyed companies have partnered with a generics manufacturer as part of a lifecycle management strategy. Among surveyed Top 10 pharmaceutical organizations and affiliates, this percentage increased to 41%. These companies, unlike smaller manufacturers, typically have the capital to invest in these partnerships. An interviewed executive told CEI that many pharmas have had positive experiences implementing this tactic. CEI found that, of surveyed companies that had formed generics partnerships, 86% reported neutral to very positive experiences.
Figure 1: Companies Impressions of Generics Manufacturer Partnership Experiences
Representatives from Marcus Evans conferences asked Richard DiCicco, Chairman of Harvest Moon Pharmaceuticals, how counter-generics partnering adds value to an organizations product portfolio. DiCicco—a speaker at the 7th Product & Pipeline Enhancement for Generics Conference—explained, “Partnerships make every task easier. Each party has a list of tasks to execute, provided both parties are in agreement. The result is increased value to the generic portfolio, with a ‘go to partner for future products.”
So what should companies—both branded and generics manufacturers—look for in their business partners? DiCicco suggests that, among other qualifications, the best partners understand the business, can evaluate quality and the leadership attributes to manage the partnership.