Pharmaceutical Commercialization Profiles: Driving Brand Success with Better Budgeting and Timing
|出版商||Cutting Edge Information||商品編碼||341199|
|出版日期||內容資訊||英文 147 Pages
|藥品商品化簡介：最適合的預算編制、時機推動品牌成功 Pharmaceutical Commercialization Profiles: Driving Brand Success with Better Budgeting and Timing|
|出版日期: 2015年08月31日||內容資訊: 英文 147 Pages||
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 that are 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. Companies must also consider when to begin specific activities, especially brand and market assessments that help commercialization committees set strategies. Finally, they must allocate their brand spend across a broad spectrum of support activities, from medical affairs to market research to marketing and commercial initiatives. Because each pharmaceutical product is different, this study profiles multiple companies across three product lifecycle phases:
Cutting Edge Information analysts synthesized the following five key recommendations from the full breadth and depth of this project's research. These principles are signposts to help improve your pharmaceutical brand commercialization strategies and resources. These points emphasize this study's central and most critical concepts.
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. For many life science companies, a brand commercialization committee is responsible for making brand strategy decisions as well as coordinating brand activities throughout the product lifecycle. Regular collaboration between internal experts allows teams to take action at the most appropriate time throughout brand development.
As brands mature, brand commercialization committees often change. Not only do these committees tend to grow in size, but the teams represented on these committees may also change. As Figure E.1 shows, new product planning groups are most commonly represented during pre-clinical development - at 80% of surveyed companies. Three other teams - clinical development, legal and market research - are present at 60% of surveyed companies.
By Phase 3, each function is represented in a brand commercialization committee at more than half of surveyed pharmaceutical firms (Figure E.2). All surveyed organizations represent regulatory, pricing and marketing stakeholders during this development phase.
Figure E.1: Functions Represented on Brand Commer-cialization Committee, Pre-Clinical
Figure E.2: Functions Represented on Brand Commer-cialization Committee, Phase 3
Firms implement regular communication between these committee members to ensure that collaborations run smoothly. Company A, a small pharma firm operating in the US, begins holding brand commercialization meetings two years before product launch. These meetings occur once per month and continue up to 12 months post-launch. This regularity allows the group to make a thorough list of action items for the duration of the brand's lifecycle.
A Company A brand executive explained, "Just about every function at one point or another is going to be involved in the [brand] launch. For us, it's important to have a cross-functional team that meets regularly so that - when functions jump in and out of activities - everyone is already working together... It's unrealistic to think that your marketer or commercial lead will know the perfect time for each function to go into action."
Pharmaceutical companies determine their brands' annual spend based on a number of factors - including the product's market entry, expected peak revenue and the company's own resources. Each brand is unique and requires different levels of support to optimize success. However, many brand teams draw on previous launch and support experiences to set budgets.
Pharma organizations tend to set brand spending plans early. At Company B, a pharma company supporting a prominent US brand, the brand team negotiates the product's spending during a business planning meeting early in the year. While the brand team starts the year with a structured spending plan, Company B's executives always plan to make adjustments. One surveyed consultant explained, "There is always an expectation that you would implement your plan. But opportunities arise in the marketplace and - if there is a good opportunity - you make the adjustment within your budget."
Small pharma Company C takes similar precautions. The brand team determines the expected spend for each product during specific lifecycle phases - which is determined as both necessary line items and a "vaulted budget" to cover unexpected expenses. Company C has traditionally launched products in Eastern markets, but it has recently begun commercialization in the US. During the development and commercialization process, the team has used some of its vaulted budget to cover what an interviewed Company C executive called "typical Western phenomena," or commercialization expenses unique to the US market. These factors include:
The executive added, "I know the general [brand spend] budget for next year. However...we have little experience marketing drugs in the Western world, and we have had to make changes to our budget projections and will continue to do so as awareness develops."
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. These early assessments are instrumental as teams coordinate necessary support activities and determine best-fit budgets.
Figure E.3 shows the percentage of surveyed pharma companies completing specific brand assessment activities by developmental phase. As shown, the majority of surveyed companies report completing each brand assessment during Phase 3. However, many companies also complete activities much sooner. For example, 25% of surveyed pharma companies complete commercial risk assessments during pre-clinical development; another 38% of pharma firms complete this activity during Phase 2.
For many companies, Phase 2 is the prime time to take on brand assessment activities. Three-quarters of surveyed firms report completing disease state assessments (Figure E.3). Another 63% each of surveyed firms take on competitive landscape assessments and unmet need assessments during Phase 2.
Figure E.3: Percentage of Companies Completing Specific Brand Assessment Activities, by Development Phase
During late-stage development - Phase 3a to registration and launch - pharmaceutical companies begin to ramp up commercial support for their emerging brands. Figure E.4 shows the average percentage of marketing and commercial spend that surveyed companies allocate to specific activities. During Phase 3a, surveyed pharmaceutical companies typically divided budgets evenly across marketing and commercial activities. Promotional speaker programs claim a significantly larger percentage - an average 21% - compared to other supported activities.
By Phase 3b, however, surveyed companies begin targeting specific commercial activities. For these firms, many of which commercialized brands in the US market, an average 52% of total marketing and commercial spend is dedicated to direct-to-consumer (DTC) advertising. This average remains similar, at 54%, during product registration and launch. For companies operating in the US - one of two world markets which allows DTC - these marketing tactics are the easiest way to reach patients with brand messages. Campaigns encompass any TV, print, radio or other mass media used to reach to end users rather than healthcare professionals. Often, these DTC campaigns are beneficial in inciting conversations about products between patients and their physicians.
Figure E.4: Average Percentage of Marketing and Commercial Spend Allocated to Specific Activities, by Phase: Phase 3a to Registration and Launch
By Phase 3b, companies are well equipped to begin working on DTC campaigns that will be released once the product is approved by the FDA. At this point in development, brand teams have a good idea of what their product labels may look like; these details inform promotional messaging. Teams have also typically completed the necessary market research to begin investing in these campaigns. An executive at small pharma Company A explained, "DTC often requires more market research than physician detailing. I find that a lot of the choices around DTC depend on your market position."
As part of its DTC campaign, Company B crafted a long-term TV commercial series to support its product. A Company B consultant noted that, compared to other promotional tactics, TV campaigns consume a significant amount of total brand spend. For this reason, brand teams typically wait until a product's label is approved before finalizing these ads. "When you get into TV, you start giving up significant investments compared to the rest of your brand. The development of this campaign took hundreds of thousands of dollars - if not millions of dollars - in market research and testing different nuances." The executive also cautions brand teams to consider their target market before beginning television DTC ads. Brands intended for broader patient populations will greatly benefit from these mass media campaigns. However, those with more niche populations may require a more targeted approach.
Post-launch, companies continue to focus brand spend on marketing and commercial activities. Though brands continue to support medical affairs and market access activities, much of the groundwork for these areas has been laid pre-launch. As brands mature, pharmaceutical brand teams also adjust their marketing and commercialization focus. While surveyed brands increase DTC spending just before product launch, other promotional areas gain support as products mature in the market.
Figure E.5 shows the average percentage of marketing and commercial spend that surveyed companies allocate to specific activities. As brands mature, companies tend to decrease the percentage of total marketing and commercial spend allocated to DTC advertising. During the launch year, surveyed pharma firms allocate the largest percentage of their marketing spends - an average 77% - to DTC ads. This allocation decreases to an average 64% during the first year on the market and to an average 54% during the second year. Though DTC spending decreases, it continues to consume more than half of surveyed companies' budgets on average.
Figure E.5: Average Percentage of Marketing and Commercial Spend Allocated to Specific Activities, by Phase: Launch Year to Second Year on Market
As products mature, brand teams shift some of their attention away from patient-centric avenues to direct messages to providers and healthcare professionals. While direct-to-consumer spending decreases as brands mature, surveyed companies begin contributing higher percentages of their commercial resources to provider support programs and promotional speaker programs. Provider support grows from an average 1% of commercial spend during the launch year to 9% during the second year on market. Promotional speaker programs spend increases from an average 4% during the launch year to an average 14% - the second-highest spend after DTC - during the second year on market. Both of these avenues focus on increasing physicians' knowledge and comfort with the brand.
Cutting Edge Information conducted this research to uncover best practices and benchmarks associated with pharmaceutical new product planning and brand spend throughout the product lifecycle from pre-clinical development to two years on market. Analysts collected surveys from and consulted with more than 30 pharmaceutical executives at a number of top life science companies and consultants in the development of this report. Executives taking part in this research range from senior-level and C-suite executives to consultants working on the front lines of pharmaceutical brand commercialization.
This study collected data from knowledgeable pharmaceutical industry executives about a single brand commercialization experience. These data reflect commercialization practices and spend employed for a single product and may not reflect average practices at a company.
Analysts developed the information upon which this study is based through both primary and secondary sources. Cutting Edge Information's process for collecting and analyzing information encompasses two distinct tools: quantitative surveys and qualitative interviews. Both tools are necessary for understanding not only the hard metrics included in this study, but also the reasoning behind the metrics.
Cutting Edge Information analysts began developing the quantitative survey tool used in this study by working closely with pharmaceutical industry executives. Once the research team completed the survey design, analysts recruited study participants from pharmaceutical firms commercializing products in the US as well as ex-US markets to collect data on commercialization teams, activities and spending. The research team collected all survey data through primary research with pharmaceutical commercialization executives. Altogether Cutting Edge Information collected and analyzed data sets from 31 companies of all sizes working in markets worldwide. Study participants included product managers, vice presidents and directors of new business development and product marketing and C-suite executives, as well as industry experts working for high-level consultancies.
Because of the cross-functional nature of brand commercialization and support, not all survey participants were able to provide complete spending breakouts. In some instances where incomplete brand data were provided, research analysts used statistical modeling to complete brand spend profiles. For modeling purposes, analysts considered the individual company's reported data and trends across all lifecycle phases as well as data reported for similar companies, brands and markets.
Once study participants submitted a survey, analysts used qualitative interviews to uncover more detailed information. Cutting Edge Information used telephone interviews with pharma executives to understand challenges and solutions to meeting the demands of new product planning and early commercialization. By interviewing a selection of survey respondents, Cutting Edge Information gained a deeper understanding of pharmaceutical brand commercialization. In return for these parties' contributions, they received the study results.
To ensure that Cutting Edge Information protects the identities and privacy of all study participants, this research does not name the companies or products it examines, nor does it link specific companies with therapeutic areas. Company blinding is a critical device that allows survey respondents to comfortably provide accurate data for studies such as this one.
This study divides surveyed companies into three categories to differentiate by size. Within the pharmaceutical industry, analysts divided the surveyed firms into four sizes Pharmaceutical Executive magazine's 2013 assessment. The categories used to analyze the data are:
To compare like numbers across a wide range of brands and companies, this report distills commercialization resources into three large umbrellas: medical affairs, market access and marketing, and commercial. Under each umbrella, this study provides resource spending for several subcategories, outlined below, to provide a more detailed brand spend. This study breaks out budget resources into the following spending categories: