About two-thirds of new drug launches under perform. Why? Marketing efforts are mismatched.
The successful launch of a new product has been essential to pharmaceutical companies. Growth for these companies are dependent on successfully marketing their product during the first few years of introduction. This pressure is going to increase in the future due to smaller pipelines and expiring patients. The external landscape is changing and becoming more competitive thus the launch of new drugs needs to be implemented close to perfection.
Since only one third of all new drugs meet first year sales expectations, Pharmaceutical companies need to start understanding what type of drug they are launch in regards to marketing strategy.
- Saturate the Market- Drugs that are strongly differentiated and treat diseases with a high perceived burden. Companies must focus on capturing the new drug’s potential as quickly as possible. Creating early exposure of the product, monitoring launch performance, and correcting errors if necessary.
- Stand Out in the Market- More than half of launches are moderately differentiated products in well-established disease areas. The priority is to find a way to stand out from similar products. Companies should focus on creating an edge for particular patient segments and create clear differentiation from existing competitors.
- Create the Market- The priority will be to establish unmet needs effectively to ensure access to a well-differentiated treatment for a targeted population. Companies must quickly understand the market’s unmet needs and not to underinvest.
- Fill the Market- Substantial challenge exist when launching an undifferentiated product in an unestablished disease area. The priority for these market-shaping launches will be effective operations and distribution.