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The Blog of Drug Discovery News

Mixed bag regarding MS

Datamonitor: Good and bad news from EU regulators for major MS players

Despite Biogen’s resolve to maintain its leading position in the MS market, rejection of Fampyra (dalfampridine) today and Novartis’s Gilenya (fingolimod) recommendation for European marketing authorization will deal another blow to its franchise, says independent analyst Datamonitor.

Dr. Trung Huynh, healthcare analyst at Datamonitor, comments: “Gilenya’s recommendation comes as welcome news for European MS sufferers. However, the committee’s negative opinion of Fampyra is a surprise given that it was approved by the FDA.”

“Gilenya, which is widely regarded as a more convenient and effective alternative, will provide heavy competition for Biogen in the market and will lead to a decline in sales for the company. In the sort term though, Biogen will still see sales figures grow as a result of recent price rises on its leading therapies Avonex and Tysabri.”

“Novartis is now set to become the leading player in the multibillion-dollar market and can expect to generate annual revenues of around $2.5 billion by the end of the decade. However, Biogen’s strong pipeline suggest the company will not go down with a fight,” concludes Huynh.


January 21, 2011 Posted by | Corporate | , , , , | 1 Comment

Look out! The brand-name ground crumbles beneath you!

OK, how’s that for a dramatic headline? Perhaps somewhat more dramatic than the actual news from Datamonitor that inspired it, but I’m not above a little marketing.

Anyway, here’s the scoop from the folks at Datamonitor about the effect of brand erosion in the United States and elsewhere when products stumble (or are pushed) over the edge of the patent cliff, in their own words:

U.S. most susceptible to brand erosion post patent expiry

Small molecule brands in the US experience the greatest degree of brand erosion following patent expiry and exposure to direct generic competition, according to a new report from independent market analyst, Datamonitor.

Following the United States, brand erosion is next most severe in the United Kingdom, Germany and France, with brand erosion the lowest in Australia, Italy, Russia, Spain and Japan.

Brands tended not to experience generic erosion in China following patent expiry since they often face generic competition from the outset, and instead continue to grow both in terms of volume and value.

Maura Musciacco, healthcare analyst at Datamonitor comments: “Brands in the U.S., regarded as the most mature of all generics markets, experienced the greatest degree of brand erosion following patent expiry and exposure to direct generic competition. On average, sales and volume decline by 72% and 70%, respectively, after 6 months of generic competition.

“The key driver for the uptake of generics drugs is the cost-savings they bring, a quality that is undoubtedly even more in demand as the U.S. contemplates adoption of universal healthcare.”

Brand erosion was greater in terms of speed and severity in the hospital setting, most likely reflecting the greater brand loyalty among patients in the retail setting. While in terms of erosion by therapy areas, sales and volume erosion was the greatest among infectious disease, oncology, and cardiovascular small molecule brands.

“Pharma is facing slowing sales growth in the developed pharmaceutical markets, driven by increasing generic competition leading to sales erosion of branded small molecule drugs post patent expiry. However, the speed and severity of brand erosion is by no means equal across countries, prescribing setting, therapy area and formulation type; factors which are of key importance when managing and forecasting branded drug sales,” concludes Maura.

January 12, 2011 Posted by | Corporate | , , , , , | Leave a comment