SOURCE: Cutting Edge Information

December 20, 2007 08:26 ET

New Formulations Used to Counter Generic Competition by 58% of Companies

RESEARCH TRIANGLE PARK, NC--(Marketwire - December 20, 2007) - New formulation strategies, such as changes in drug dosage or extended-release formulas, are used by more surveyed companies than any other strategy to counter generic competition, according to a new study by Cutting Edge Information (http://www.PharmaGenerics.com). Fifty-eight percent of companies surveyed indicated that their company had launched a new formulation of an existing product.

This is true despite the extended period of time required to launch a new formulation successfully. Nearly two-thirds of companies began new formulation strategies at least four years prior to patent expiration. Because new formularies are one of the most effective strategies to maintain brand revenue, this strategy is considered and regularly implemented despite brand teams' otherwise chronically late consideration of counter-generics strategies.

While not as quickly implemented as many other lifecycle management tactics, a new formulation can add years of patent life to a brand at the peak of its sales potential. For the largest blockbuster drugs, a safer or more effective extended-release product can produce an extra billion dollars or more in sales.

"Despite the high cost in both time and money, most companies consider new formulations to be a cost-effective way to maximize revenue and extend a brand's lifecycle," said Eric Bolesh, research team leader at Cutting Edge Information. "Among strategies planned for the future, new formulations continue to be the most used counter-generics strategies."

Cutting Edge Information's report, "Combating Generics 2008: Counter Generics Strategy, Planning and Execution," available at http://www.PharmaGenerics.com, details the present and planned future usage of a dozen generics strategies and examines other 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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