HIGHLIGHTS


Scientific innovation beats diversification for biopharmaceutical companies

Biopharmaceutical companies that focus on applying scientific innovation to product launches are outperforming their peers.

The companies that are breaking away from the pack are demonstrating significant and rapid improvement in performance, when compared to their peers. Five companies in particular are now a step change above the rest of the pack:

  • Novo Nordisk remains the only high performer in 2013.

  • Bristol-Myers Squibb, Amgen and Roche rose three, eight and six places respectively since last year’s study and now form the “near high” performers.

  • Astellas jumped eight places to just behind the near high performer group.

These companies have been able to successfully launch and grow new products in a payer environment that is more challenging than ever. So how can other biopharmaceutical companies reach the same level of success?

  • Use more innovative and collaborative R&D models to find and develop the best science wherever it arises—including academia, biotech or other pharma companies. For example, Bristol-Myers Squibb’s, “String of Pearls” strategy sought to build a leading pipeline across its focused disease areas, through partnerships and acquisitions with both small and large companies. Today, the company estimates 50 percent of its revenue and 40 percent of its pipeline come from external alliances.

  • Commit to applying science to product launches, focused on improved outcomes for specific patient groups. One way to achieve this is by collaborating with payers and other patient-oriented organizations early in the drug development process. This leverages and builds payers’ understanding of the patient’s unmet needs for target populations long before a product is launched, which increases your likelihood of reimbursement.

  • Use flexible pricing strategy for different patient populations and markets. Roche has offered flexible pricing for Avastin in Italy where the company pays back some of the cost, depending on the patients' response to and the duration of treatment. Avastin pricing may also vary based on efficacy in different cancer indications.

  • Master new channels and services to help healthcare professionals and patients achieve better patient outcomes. Novo Nordisk has done this through its "Dawn2" program by giving diabetes patients online resources for disease management, and providing healthcare professionals with resources to better understand and manage their patients.

  • Finely-tune operations, pricing and product portfolios to local needs in emerging markets. This involves identifying the precise portfolio of appropriately priced products and supporting services, versus offering the whole portfolio. For example, patient services are a pillar of Sanofi’s strategy in India.

The "Saath7" diabetic patient support program has a team working closely with physicians to help patients and families understand the disease and attain desired treatment goals. Sanofi is also working on making blood glucose monitoring and insulin injector devices more affordable to patients in India. This involves identifying the precise portfolio of appropriately priced products and supporting services, versus offering the whole portfolio. For example, patient services are a pillar of Sanofi’s strategy in India.

Learn more about our Research Findings, Putting the Science Back into Life Sciences.