Lack of early market research spending lowers drug success rates

Feb 23 2005

Pharmaceutical market research spending during Launch exceeds all market research spending from Pre-Clinical to Phase III, according to a new industry report by Cutting Edge Information. This lack of early market research spending dramatically reduces a product's viability in the competitive marketplace.

Cutting Edge Information's study finds a sizable opportunity for pharmaceutical companies to invest more in early-stage market research to support R&D and marketing strategies. Proactive market research - starting years before a drug hits the market - helps build long-term strategies for products entering ultra-competitive markets.

While the industry average for market research budgets in support of a developing drug hovers near $5.45 million, top-spending organizations dedicate more than $26 million per product according to a new study by pharmaceutical intelligence leader Cutting Edge Information, http://www.pharmamarketresearch.com/ .

"Market research is no longer a secondary, data collection function," said Elio Evangelista, senior analyst at Cutting Edge Information. "It can be used as a proactive tool, a strategic advisor and a project manager, especially in early development stages, to ensure a product's success in the future."

"Pharmaceutical Market Research: Decision Support for Brand Growth," available at http://www.pharmamarketresearch.com/ , features practices from top companies including Bayer, Eli Lilly, P.zer, Procter and Gamble Pharmaceuticals, and Wyeth. It contains more than 250 metrics and details how top companies allocate resources, develop strategy and conduct effective market research activities.

The report showcases metrics and real-life techniques for bettering the efficiency of pharmaceutical market research departments, in three areas:

• Structure and Investment - budgets, sizes and structures of major pharmaceutical market research teams
• Market Research Strategy - Setting objectives and plans to support key development activities
• Market Research Activities - Translating strategies into actions

To download the online summary of this 146-page report, visit http://www.pharmamarketresearch.com/