A frequent response to hearing the words “established molecules” is “so you mean generics, right?” Well yes, and no! There is more to it than “just generics” and in fact this is an exciting and profitable area of pharma and one we love to work on here at Hawk Pharma Consulting.
Generics
Generics are established molecules, but that’s only part of the story. When we say generics we are thinking about so called vanilla generics – typically straightforward tablets or vials of injectables and the like that, in many markets, are written generically from day 1 – the UK is one of the most notable in this regard. Once they are off patent it quickly becomes a commodity play all about price and supply – generally a business that is relatively low margin and quite up and down.
Alternative Brands
Most people call them “branded generics” but we don’t like that term – the word generic suggests it is ONLY about price. Hawk Pharma Consulting’s preferred term is “Alternative Brands”. When we create an alternative brand it is important that we add value that goes beyond the budget impact of the product. It may be the quality of the product – and remember some of the medicines prescribed by brand name will be drug-device combinations (like a depot contraceptive or a respiratory inhaler) so that quality and user or patient friendly aspect is key. It may be patient support, HCP education but adding value is key to making it a brand and building loyalty.
Generics + Plus
When patent-off happens, vanilla generics compete with many other identical products. If you could add a PLUS to your generic (or alternative brand if it lends itself to that approach) you add value. A good example is of a company who developed a unique weekly dose of a daily medicine. Another example is the launch of a form like a liquid or melt so you take swallowing out of the equation for children or others with swallowing difficulties. For an injectable you could you produce a time-saving licensed pre-filled syringe. These things add uniqueness and value and command a higher price.
Repurposed Molecules
When an indication is changed, the product is commonly known as a repurposed medicine. There’s a good recent example – Glucophage SR is the originator brand of metformin, which is a well established drug to treat diabetes. Recently it added an indication for ovulation stimulation in women with PCOS – that is a much needed option for women with that condition AND it breathes life into an old brand so adding value. This also happens in rare diseases – there are examples of established molecules in a new dose or form being a treatment for one of these conditions. The good thing is that with repurposed molecules there is a much reduced need to test the safety of the medicine so the R&D focuses on use of the molecule in that condition. That R&D costs money so securing a viable price is key and you have to build a powerful value proposition to achieve that.
Summary
The word value has been used a lot here with alternative brands, generics + and repurposed medicines. That’s because proving the value in any of these segments is critical – it is not what the product is but the value it brings to patients or the health service. That helps secure brand prescribing and a commercially viable price.
There is life beyond patent-off! It is exciting and requires a very clear marketing strategy having established that you have a suitable candidate. It is important for both those who have a brand approaching its patent expiry and companies looking to see how you could work smarter with established molecules.
We’ve done a lot of work on established molecules at Hawk Pharma Consulting – every case is different so please get in touch us to set up an initial appointment with no obligation. Drop us a line at our email info@hawkpharmaconsulting.com