Blockbuster Pharmaceutical Launches: Late-Stage Marketing Budgets on the Rise

Pharmaceutical brand teams spend 46% of their total marketing budgets for individual products during the Launch phase, according to a new study by pharmaceutical intelligence firm, Cutting Edge Information.

Boosting brand team resources during late-stage development marks the difference between commercial success and disappointment.

"Blockbuster Pharmaceutical Launches: Marketing Spend and Structure," available at http://www.PharmaLaunch.com, contains more than 250 metrics and features in-depth pharmaceutical marketing strategies from top companies including Merck, AstraZeneca, Bayer, Wyeth and Roche. The latest edition, published in January 2003, shows how the most successful pharmaceutical products require significant financial backing from the marketing organization during Phase III and Launch.

"A chief frustration among brand managers is senior management's apparent willingness to under-fund several developing products rather than back a few high-potential drugs," said Cutting Edge Information's president Jason Richardson. "This practice fiscally handcuffs brands and weakens whole pipelines' commercial viability."

For example, one profiled company obtained more than $450 million in total funding. Approximately $250 million of this total supported Launch activities, while the organization poured $50 million into both Phase IIIa and IIIb. Marketers identify early, consistent budgeting as key to product success, and spending ramps up considerably as soon as the product enters human trials.

"Blockbuster Pharmaceutical Launches: Marketing Spend and Structure" is the most comprehensive marketing guide for brand managers to date. The report showcases metrics and practices in the following areas:

--  Detailed brand team budget and staffing resource levels for large and
    small products
--  Key marketing activities and timelines
--  Therapeutic area and brand team organizational structures
--  Brand team functional support levels
--  Portfolio management and resource allocation
    

To download the online summary of this 119-page report, visit http://www.PharmaLaunch.com. For more information on this report or to learn about other research being conducted by Cutting Edge Information, contact Jan Blanchette at jan_blanchette@cuttingedgeinfo.com or 919-433-0218. For media inquiries, contact Tricia McGovern at tricia_mcgovern@cuttingedgeinfo.com or 919-433-0217.

Eric Bolesh is a senior analyst and consulting project leader with Cutting Edge Information. Mr. Bolesh's work on customized research in pharmaceutical product commercialization, sales force management, and business development has directly impacted strategy and tactics for top pharmaceutical clients. For more information about our research and consulting services, contact Eric at eric_bolesh@cuttingedgeinfo.com or 919-433-0209.

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