New Study: Reformulated Drugs Lead to Increase in Revenue and Patent Protection


RESEARCH TRIANGLE PARK, NC--(Marketwire - August 23, 2007) - According to a study conducted by leading pharmaceutical business intelligence firm Cutting Edge Information, new drug formulations are often a successful means of relaunching and reviving a brand late in its lifecycle, encouraging revenue, and preserving patent life (http://www.PharmaRelaunch.com).

According to Cutting Edge Information's report, "Pharmaceutical Product Relaunch: Preserving Market Share through Line Extension and New Market Entry Strategies," new drug formulations brought increased revenues for 75% of companies, while maintaining revenues for the remaining 25%. No company reported a drop in revenues upon relaunching a drug in a new formulation. Cutting Edge Information also found that a new formulation can extend patent exclusivity by 10 to 15 years. Among line extension strategies, new formulations demonstrated the best market share protection for an average 21.2 to 26.7 months.

Pharmaceutical companies launch new formulations to prevent looming generics competition. Facing the threat of generics competition, one of the surveyed brands relaunched a new formulation at the time of patent expiration for the original drug and successfully doubled the original drug's peak annual sales with the new formulation. More than half of pharmaceutical companies that relaunch new formulations begin planning the relaunch by Phase II of the original drug's development. This allows the companies ample time to test and market the relaunch.

"Companies that plan new formulations early in development benefit because they their pivotal trials to collect data for an impending relaunch," says Elio Evangelista, research team leader at Cutting Edge Information. "A quicker development process means less money invested in the relaunch and more time for the relaunched drug to bring in revenue while retaining its patent."

"Pharmaceutical Product Relaunch: Preserving Market Share through Line Extension and New Market Entry Strategies" examines new formulations relaunches, along with six other lifecycle management strategies, to understand which strategies are most economically effective. In addition to new formulations and delivery systems relaunches, the six strategies discussed in the report are:

--  New indications
--  New dosing strengths
--  New dosing regimens
--  Pediatric indications
--  Drug repurposing
--  Combination therapies
    

To download a free report summary, please visit: http://www.cuttingedgeinfo.com/pharmarelaunch/PH98_Download.asp#body

Save a CEI catalog to your desktop: http://www.cuttingedgeinfo.com/reports/Cutting_Edge_Information_Report_Catalog.pdf

Contact Information: Contact: Oveda Slade (919) 403-6583