Although deciding on a new formulation as a way to extend a product line requires significant investment, this lifecycle management (LCM) strategy can also yield significant returns. Global sales for new formulations range from $65 million to $8 billion among surveyed companies, according to primary intelligence provider Cutting Edge Information.
Forty-five percent of surveyed companies in Pharmaceutical Lifecycle Management: Expand and Extend Portfolio Value with a Well-Integrated LCM Strategy leverage new formulations as a line extension strategy, making it the second most popular lifecycle tactic among surveyed teams. A new formulation is costly and time-consuming, as additional clinical trials must be performed to prove the safety and efficacy of the new product. However, new formulation tactics have proven highly effective.
"A team with a successful brand can gain a lot by investing in a new formulation," said Natalie DeMasi, senior analyst at Cutting Edge Information. "With global sales for new formulations among surveyed companies ranging from $65 million to $8 billion annually, life sciences groups stand to gain a lot by considering this LCM strategy."
Pharmaceutical Lifecycle Management: Expand and Extend Portfolio Value with a Well-Integrated LCM Strategy, available at http://cuttingedgeinfo.com/research/portfolio-management/lcm-strategy/, includes detailed metrics and case studies for 14 different lifecycle management strategies, such as new formulations, new dosages, combination products and next-generation products. Metrics include average implementation costs, average return-on-investment, timelines for planning and executing each tactic, as well as primary goals for implementing each strategy.