SOURCE: Cutting Edge Information

October 09, 2007 07:26 ET

Counter-Generics 2008 Research Study to Be Released Today by Cutting Edge Information

RESEARCH TRIANGLE PARK, NC--(Marketwire - October 9, 2007) - In the face of generics competition, drug companies spend tens of millions of dollars on strategies to retain revenue and market share, according to a new report released today by Cutting Edge Information (http://www.PharmaGenerics.com).

"Combating Generics 2008: Counter-Generics Strategy, Tactics and Execution" explores the different options open to branded pharmaceutical makers as drugs near the end of patent life. According to Eric Bolesh, lead author of the report, sound counter-generics planning contains different tiers that range from high-risk, high-reward R&D to tried-and-true marketing tactics.

"The most forward-thinking companies use a blend of tactics to bolster their products' generics defenses," said Bolesh. "A multi-tiered counter-generics strategy positions companies to attempt riskier opportunities while building contingency plans."

In formulating strategies, companies consider not only the usual array of frontline tactics -- litigation, pricing changes and counter-promotion -- but also plans that take years to develop, such as approvals for new formulations and attempts at developing new drugs to inherit older products' market share. These latter, riskier options depend on R&D success to win patents and launch new brands.

According to Bolesh, timing becomes a critical challenge. "Too many brands wait until it's too late," he said. "Teams should start planning around launch or at least several years out from patent expiration."

The team behind one profiled product, for example, invested more than $30 million in its counter-generics plan. Nearly two-thirds of that amount supported research on new formulations and indications, while another third funded research on a next-generation drug.

The brand hoped to expand patent protection and to preserve sales through new discoveries, patents and, eventually, a drug launch. When the ideal objective -- a next-generation or combination drug -- did not materialize, however, it was ready for the inevitable generics assault. Its last tier of defenses included nearly $2 million invested in litigation and counter-generics advertising.

"Combating Generics 2008: Counter Generics Strategy, Tactics and Execution" examines counter-generics activity at more than 30 different companies. Data detail investment levels, planning and implementation timelines and the prominence of different tools and tactics in the fight against generics. The report's findings also explore case studies and the experiences of real-world brand teams.

Download a free summary of this 159-page report at: http://www.cuttingedgeinfo.com/pharmagenerics/PH105_Download.asp#body.

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