SOURCE: Cutting Edge Information

April 18, 2008 09:22 ET

LCM Tactics Require Cross-Functional Cooperation

RESEARCH TRIANGLE PARK, NC--(Marketwire - April 18, 2008) - According to a new study released by Cutting Edge Information, lifecycle management (LCM) tactics must be integrated across several of a company's functions in order to be successful. The report, "Pharma Brand Optimization: Lifecycle Management Strategy," discusses the most effective support, structure and communication avenues for LCM strategy (http://www.PharmaLifecycleManagement.com).

According to the study, creation of a corporate philosophy that encourages a holistic approach to LCM is a significant step. Every department must understand the part it plays in strengthening the existing portfolio and pipeline. It is also critical for departments to understand the important role that they play in executing a comprehensive lifecycle management strategy for a brand.

For example, according to the study, strategic pricing is a pivotal, peak-time LCM tactic that requires a relatively short amount of preparation time but requires the input and cooperation of a number of functions. The study concludes that strategic pricing has one of the shortest planning times for any LCM tactic: it takes a company approximately 9.5 months to prepare and implement a strategic pricing campaign. This tactic also provides a good ROI, about $5 to every $1 spent. Even so, without support and planning from a number of functions across the organization -- competitors' pricing schemes from market research, labeling from medical affairs and clinical profiles from R&D, for instance -- a strategic pricing endeavor is in danger of falling apart.

"With lagging pipelines and slowing revenue streams, pharmaceutical companies must maximize the market potential of every product," comments Elio Evangelista, research team leader at Cutting Edge Information. "To achieve this, every department of a company should be aware of how its actions impact brand value and how planning is paramount to sustained revenue and growth."

"A Guidebook to Pharma Brand Optimization: Lifecycle Management Strategy" (http://www.PharmaLifecycleManagement.com) examines pharmaceutical companies' lifecycle management structures, funding, processes, and strategies. Through this report, readers will be better positioned to streamline their LCM strategies and processes by benchmarking their efforts against those of top-leading companies.

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