Small And Specialty Drug Branding: Tapping Niche Market Potential

This publication has been discontinued on December 9, 2011.

Introduction

Abstract

Commercializing new drugs continues to challenge companies across the pharmaceutical and biotechnology sectors. Cutting Edge Information published this study to assist individuals and product teams who seek guidance in the allocation of pre- and post-launch marketing resources for small and specialty brands.

The information contained in this report is based on primary research gathered from brand managers and directors, marketing executives and marketing support function team members working with brands marketed in the United States, Europe and worldwide.

The following recommendations and conclusions were among Cutting Edge Information' s top study findings:

Support niche brand launches with stronger promotional infrastructures.

Niche brand development is a catch-22; companies hesitate to invest heavily in a drug targeted for less than $500 million in peak annual sales and niche brands cannot exceed $500 million because they are not properly supported. The highest global spending for any niche brand profiled in this study is...

Invest more funds in thought leader development than advertising for European launches.

With such limited budgets, brand teams need to be particularly meticulous in allocating resources to the various marketing functions. One core marketing strategy that brand teams approach differently...

Leverage smaller products for profits and strategic objectives, focusing on brand activities and advertising to grow revenue.

Blockbuster products reach multibillion dollar revenues thanks to their experienced marketing organizations. However, even experienced marketing organizations rely on niche drug launches to fill portfolio gaps and expand into new therapeutic areas. Companies with the promotional wherewithal to maximize niche sales...

Assign marketing resources in a timely fashion to have greatest impact.

Marketing a niche drug entails great attention to the timing of marketing activities. By the same token, allocating marketing dollars to support these marketing functions during key stage gates in a product' s development is paramount to a drug' s success...

Assign global staffing levels according to marketing investment levels and drugs' unique demands.

It is generally true that FTEs increase alongside financial investments. Closer examination of the products, however, shows that dollars spent is not always a predictor of staffing levels...

Charts and Graphics

RESOURCE ALLOCATION AND STRATEGIC PROFILES

• Figure E.1: Study Context: Therapeutic Areas
• Figure E.2: Niche Brand Commercialization Spending Breakdown
• Figure E.3: Percent of Marketing Budget by Phase

GLOBAL RESOURCE ALLOCATION

• Figure 1.1: Niche Brand Global Expenditures and Sales
• Table 1.1: Global Launch Context
• Figure 1.2: Global Spending
• Figure 1.3: Global Staffing
• Figure 1.4: Global Activities Spending
• Figure 1.5: Global Activities Staffing
• Figure 1.6: Global Market Research Spending
• Figure 1.7: Global Market Research Staffing
• Figure 1.8: Global Thought Leader Development Spending
• Figure 1.9: Global Thought Leader Development Staffing
• Figure 1.10: Global Advertising Spending
• Figure 1.11: Global Advertising Staffing

Brand 1

• Table 1.2: Brand 1 Spending
• Figure 1.12: Brand 1: Budget Allocation
• Table 1.3: Brand 1 Staffing
• Figure 1.13: Brand 1: Staffing Allocation
• Figure 1.14: Brand 1: Launch Context

Brand 2

• Table 1.4 Brand 2 Spending Table
• Figure 1.15: Brand 2: Budget Allocation
• Table 1.5: Brand 2 Staffing Table
• Figure 1.16: Brand 2: Staffing Allocation
• Figure 1.17: Brand 2: Launch Context

Brand 3

• Table 1.6: Brand 3 Spending
• Figure 1.18: Brand 3: Budget Allocation
• Table 1.7: Brand 3 Staffing
• Figure 1.19: Brand 3: Staffing Allocation
• Figure 1.20: Brand 3: Launch Context

Brand 4

• Table 1.8: Brand 4 Spending
• Figure 1.21: Brand 4: Budget Allocation
• Table 1.9: Brand 4 Staffing
• Figure 1.22: Brand 4: Staffing Allocation
• Figure 1.23: Brand 4: Launch Context

Brand 5

• Table 1.10: Brand 5 Staffing
• Figure 1.24: Brand 5: Budget Allocation
• Table 1.11: Brand 5 Spending
• Figure 1.25: Brand 5: Staffing Allocation
• Figure 1.26: Brand 5: Launch Context

EUROPEAN MARKETING

• Figure 2.1: European Marketing Mix
• Table 2.1: European Launch Context
• Figure 2.2: European Total Spending
• Figure 2.3: European Total Staffing
• Figure 2.4: European Brand Activities Spending
• Figure 2.5: European Brand Activities Staffing
• Figure 2.6: European Market Research Spending
• Figure 2.7: European Market Research Staffing
• Figure 2.8: European Thought Leader Development Spending
• Figure 2.9: European Thought Leader Development Staffing
• Figure 2.10: European Advertising Spending
• Figure 2.11: European Advertising Staffing
• Figure 2.12: Average European Marketing Spending as % of European Peak Annual Sales (by Resource Category)
• Figure 2.13: Average Peak European Marketing Staffing (by Resource Category)
• Figure 2.14: European Marketing Spending (as % of European Peak Annual Sales)
• Figure 2.15: Niche Brands' Peak Total Marketing Staffing
• Figure 2.16: Brand Activities Spending (as % of European Peak Annual Sales)
• Figure 2.17: Peak European Brand Activities Staffing
• Figure 2.18: European Market Research Spending (as % of European Peak Annual Sales)
• Figure 2.19: Peak European Market Research Staffing
• Figure 2.20: European Thought Leader Development Spending (as % of European Peak Annual Sales)
• Figure 2.21: Peak European Thought Leader Development Staffing
• Figure 2.22: European Advertising Spending (as % of European Peak Annual Sales)
• Figure 2.23: Peak European Advertising Staffing

Brand 6

• Table 2.2: Brand 6 Spending
• Figure 2.24: Brand 6: Budget Allocation
• Table 2.3: Brand 6 Staffing
• Figure 2.25: Brand 6: Staffing Allocation
• Figure 2.26: Brand 6: Launch Context

Brand 7

• Table 2.4: Brand 7 Spending
• Figure 2.27: Brand 7: Budget Allocation
• Table 2.5: Brand 7 Staffing
• Figure 2.28: Brand 7: Staffing Allocation
• Figure 2.29: Brand 7: Launch Context

Brand 8

• Table 2.6: Brand 8 Spending Table
• Figure 2.30: Brand 8: Budget Allocation
• Table 2.7: Brand 8 Staffing Table
• Figure 2.31: Brand 8: Staffing Allocation
• Figure 2.32: Brand 8: Launch Context

Brand 9

• Table 2.8: Brand 9 Spending
• Figure 2.33: Brand 9: Budget Allocation
• Table 2.9: Brand 9 Staffing
• Figure 2.34: Brand 9: Staffing Allocation
• Figure 2.35: Brand 9: Launch Context
• Table 2.10: Brand 10 Spending

Brand 10

• Figure 2.36: Brand 10: Budget Allocation
• Figure 2.37: Brand 10: Budget Allocation (Early-Stage)
• Table 2.11: Brand 10 Staffing
• Figure 2.38: Brand 10: Staffing Allocation
• Figure 2.39: Brand 10: Launch Context

Brand 11

• Table 2.12: Brand 11 Staffing
• Figure 2.41: Brand 10: Budget Allocation (Early-Stage)
• Figure 2.40: Brand 11: Budget Allocation
• Table 2.13: Brand 11 Spending
• Figure 2.42: Brand 11: Staffing Allocation
• Figure 2.43: Brand 11: Launch Context

US COMMERCIALIZATION

• Figure 3.1: US Marketing Mix
• Table 3.1: US Launch Context
• Figure 3.2: US Total Spending
• Figure 3.3: US Total Staffing
• Figure 3.4: US Brand Activities Spending
• Figure 3.5: US Brand Activities Staffing
• Figure 3.6: US Market Research Spending
• Figure 3.7: US Market Research Staffing Figure
• Figure 3.8: US Thought Leader Development Spending
• Figure 3.9: US Thought Leader Development Staffing
• Figure 3.10: US Advertising Spending
• Figure 3.11: US Advertising Staffing

Brand 12

• Table 3.2: Brand 12 Spending
• Figure 3.12: Brand 12: Budget Allocation
• Table 3.3: Brand 12 Staffing Table
• Figure 3.13: Brand 12: Staffing Allocation
• Figure 3.14: Brand 12: Launch Context
• Figure 3.15: Brand 12 Sales Investment vs. US Average

Brand 13

• Table 3.4: Brand 13 Spending
• Figure 3.16: Brand 13: Budget Allocation
• Figure 3.17: Brand 13: Budget Allocation (Early-Stage)
• Table 3.5: Brand 13 Staffing Table
• Figure 3.18: Brand 13: Staffing Allocation
• Figure 3.19: Brand 13: Launch Context
• Figure 3.20: Brand 13 Sales Investment vs. US Average

Brand 14

• Table 3.6: Brand 14 Spending
• Figure 3.22: Brand 14: Budget Allocation (Early-Stage)
• Figure 3.21: Brand 14: Budget Allocation
• Table 3.7: Brand 14 Staffing Table
• Figure 3.23: Brand 14: Staffing Allocation
• Figure 3.24: Brand 14: Launch Context
• Figure 3.25: Brand 14 Sales Investment vs. US Average

Brand 15

• Table 3.8: Brand 15 Spending
• Figure 3.27: Brand 15: Budget Allocation (Early-Stage)
• Figure 3.26: Brand 15: Budget Allocation
• Table 3.9: Brand 15 Staffing Table
• Figure 3.28: Brand 15: Staffing Allocation
• Figure 3.29: Brand 15: Launch Context
• Figure 3.30: Brand 15 Sales Investment vs. US Average

Brand 16

• Table 3.10: Brand 16 Spending
• Figure 3.32: Brand 16: Budget Allocation (Early-Stage)
• Figure 3.31: Brand 16: Budget Allocation
• Table 3.11: Brand 16 Staffing Table
• Figure 3.33: Brand 16: Staffing Allocation
• Figure 3.34: Brand 16: Launch Context
• Figure 3.35: Brand 16 Sales Investment vs. Niche Average

Brand 17

• Table 3.12: Brand 17 Spending
• Figure 3.36: Brand 17: Budget Allocation
• Table 3.13: Brand 17 Staffing Table
• Figure 3.37: Brand 17: Staffing Allocation
• Figure 3.38: Brand 17: Launch Context
• Figure 3.39: Brand 17 Sales Investment vs. Niche Average

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