The Rise of Mid-Sized Pharma

Summary

Since the year 2000 mid-sized pharmaceutical companies have out performed their larger rivals – they have grown more rapidly, produced better profits and have performed far better on the world’s stock markets.

There are many reasons why this has happened; big pharma is facing a multitude of serious problems that it did not realise were important just a few years ago. Now there are major issues with public perception, an innovation deficit and increased regulation. The lessons for big Pharma are clear and this report provides a challenging analysis of the factors involved, including:

• The failure of the blockbuster model
• R&D productivity
• Therapy Focus
• Specialist markets
• Informed consumers
• The cost of drugs
• Tougher regulation
• Drug withdrawals

This report is essential reading for anyone in the biotech, pharmaceutical and clinical outsourcing industries from corporate management through development and research to marketing and sales.  It gives an authoritative, detailed and clear explanation of the issues surrounding mid-sized Pharma and their implications for the market and for the biotech and pharmaceutical industries.

Contents

Chapter 1: Introduction

1.1 Investors Cotton On
1.2 New Competition
1.3 A Paternalistic Industry
1.4 Getting in Shape
1.5 New Business Models
1.6 The String of Pearls
1.7 References

Chapter 2: What is Middle Pharma?

2.1 2007 Mid Pharma
2.2 2007 US Mid Pharma Sales Growth
2.2.1 2007 Europe Mid Pharma Sales Growth
2.2.2 2007 Japan Mid Pharma Sales Growth
2.3 Tables Ranked by 2007 Sales Revenues Comparing Big & Middle Pharma Totals
2.3.1 Big Pharma Financials - Revenues
2.3.2 Big Pharma Financials - Net Income
2.3.3 Big Pharma Financials - Price Earnings Ratio
2.3.4 Big Pharma Financials - Market Capitalisation
2.3.5 Mid Pharma Financials - Revenues
2.3.6 Mid Pharma Financials - Net Income
2.3.7 Mid Pharma Financials - Price Earning Ratio
2.3.8 Mid Pharma Financials - Market Capitalisation
2.4 Enormous Diversity
2.5 A Question of Scale
2.6 A Question of Focus
2.7 A Question of Efficiency
2.8 Big & Middle Pharma Tables Ranked by 2007 Sales Revenues
2.8.1 2000-2006 Mid Pharma SG&A
2.8.2 2000-2006 Mid Pharma R&D
2.8.3 2000-2006 Mid Pharma Employees
2.8.4 2000-2006 Big Pharma SG&A
2.8.5 2000-2006 Big Pharma R&D
2.8.6 2000-2006 Big Pharma Employees
2.9 The Japanese Companies
2.10 A Great Place to Work
2.11 References

Chapter 3: A Matter of Scale

3.1 The Value of a Good Reputation
3.1 Big Pharma US Sales as a % of Group Sales
3.1.1 Mid Pharma US Sales as a % of Group Sales
3.2 The Consumer Voice
3.3 A Global Trend
3.4 Increased Regulation
3.5 Critical Path Initiative
3.6 New Regulatory Controls
3.7 A Matter of Scale
3.8 Collaboration, Collaboration, Collaboration
3.9 References

Chapter 4: Reinvention of the Titans

4.1 A Tipping Point
4.2 Downsizing of the Titans
4.2.1 Announced Job Cuts in the Drug Industry (2000-2007)
4.2.2 Announced Job Cuts at Top 15 Companies
4.3 Jostling for Position
4.4 The Challenge of Change
4.5 Sales & Marketing
4.6 Big, Not Necessarily Bad
4.7 References

Chapter 5: Getting the Business Model Right

5.1 Thinking Small Gets Results
5.2 Who Says Elephants Can’t Dance?
5.3 Focus on the Titans
5.4 Greater Collaboration
5.5 The Influence of Private Equity
5.6 Which Business Model Works Best?
5.7 Johnson & Johnson
5.8 The Private Equity Perspective
5.9 References

Chapter 6: Innovation, Innovation, Innovation

6.1 Science as a Leveller
6.2 A Collaborative Future
6.3 Fitness for Purpose
6.4 Niche Markets
6.5 Convergence
6.6 The Patient Voice
6.7 Walking Tall
6.8 References

List of EvaluatePharma Tables

Table 1.1: Top 10 Drugs by US Sales, 2007 in Cardiovascular and CNS Therapeutic Categories
Table 1.2: FDA Approvals (1997-2007)
Table 1.3: US Pharma Sales (2001-2007)
Table 1.4: Cash Flows in Big Pharma
Table 2.1 2007 Mid Pharma
Table 2.2 2007 US Mid Pharma Sales Growth
Table 2.2.1 2007 Europe Mid Pharma Sales Growth
Table 2.2.2 2007 Japan Mid Pharma Sales Growth
Table 2.3 Tables Ranked by 2007 Sales Revenues Comparing Big & Middle Pharma Totals
Table 2.3.1 Big Pharma Financials - Revenues
Table 2.3.2 Big Pharma Financials - Net Income
Table 2.3.3 Big Pharma Financials - Price Earnings Ratio
Table 2.3.4 Big Pharma Financials - Market Capitalisation
Table 2.3.5 Mid Pharma Financials - Revenues
Table 2.3.6 Mid Pharma Financials - Net Income
Table 2.3.7 Mid Pharma Financials - Price Earning Ratio
Table 2.3.8 Mid Pharma Financials - Market Capitalisation
Table 2.4 Specialty Pharma
Table 2.5 Mid-Tier Therapy Focus 2006 (excluding Japanese and Generics companies)
Table 2.8.1 2000-2006 Mid Pharma SG&A
Table 2.8.2 2000-2006 Mid Pharma R&D
Table 2.8.3 2000-2006 Mid Pharma Employees
Table 2.8.4 2000-2006 Big Pharma SG&A
Table 2.8.5 2000-2006 Big Pharma R&D
Table 2.8.6 2000-2006 Big Pharma Employees
Table 3.1: Big Pharma US Sales as a % of Group Sales
Table 3.1.1 Mid Pharma US Sales as a % of Group Sales
Table 4.2.1 Announced Job Cuts in the Drug Industry (2000-2007)
Table 4.2.2 Announced Job Cuts at Top 15 Companies