Data published by Cutting Edge Information found that implementing an authorized generics strategy produces a 5,100% return-on-investment (ROI), higher than any other lifecycle management (LCM) strategy examined in the research.
The study, "Pharmaceutical Lifecycle Management: Expand and Extend Portfolio Value with a Well-Integrated LCM Strategy," published by Cutting Edge Information, found that drug companies continue to invest in authorized generics strategies to maintain profits and avoid patent litigation. One of the primary goals for pharmaceutical brand teams that undertake an authorized generics strategy is to slow the pace of market share decline after market exclusivity loss, according to the study.
Cutting Edge Information researched the cost effectiveness of major pharmaceutical companies' authorized generics strategies and highlighted those findings. Although not as popular as other lifecycle management strategies, authorized generics deliver the most substantial ROI among all of the LCM tactics studied. The study found that for every dollar spent implementing an authorized generics strategy, a drug company receives $51 back.
"Authorized generics strategies were rated as highly effective lifecycle management tactics," said Natalie DeMasi, senior research analyst at Cutting Edge Information. "Companies often turn to authorized generics deals to preserve branded drug sales and avoid lengthy court battles when generic companies file a Paragraph IV certification."
The full study examines the cost effectiveness of 14 different LCM strategies at more than 40 pharmaceutical, biotechnology, medical device and other life science companies. The real-world case studies included are supported by more than 500 quantitative data points, showcasing metrics covering the top lifecycle management strategies that pharmaceutical brand managers implement throughout the industry.