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Asian Producers Raise Their Profiles In the Global Pharmaceutical Value Chain
May 2, 2006
By: Patricia Van Arnum
Pharmaceutical Technology

Indian and Chinese manufacturers are becoming a force in the global pharmaceutical supply chain by further penetrating Western generic drug markets, upping investments in manufacturing active pharmaceutical ingredients (APIs) and in formulations, and strengthening internal research and development.

"Indian companies are becoming leaders in capital investments in generics and are leading in drug master files (DMFs)," says Cynthia Dowd Greene, vice-president for industry research at Newport Strategies (Portland, ME, www.newportstrategies.com/), who recently spoke at the Generic Pharmaceutical Association's (GPhA, Arlington, VA, www.gphaonline.org/) API 2006 Meeting. In 2005, Indian companies filed 265 DMFs, up from 227 in 2004 and 139 in 2003, notes Greene.

According to a Harris poll conducted in early December for the Wall Street Journal Online, nearly half of US adults and more than 73 percent of US Vioxx users said they were closely following the story of the withdrawal of Vioxx. More than half of those who had taken Vioxx—or lived in a household where someone else did—said they took some action based on what they read. About 60 percent of those in households where Vioxx was used said they were somewhat or very concerned. (For additional results of the survey, see our Leading Indicators section.)

To me, those numbers look pretty encouraging. People understood that the Vioxx news identified a potential risk. They paid attention and took personal responsibility—just the way they're supposed to.

The market-driven system, which relies on patents and protected pricing to finance medical innovation, leaves treatment gaps in Europe and the developing world. So says a report commissioned by the Dutch government on behalf of the World Health Organization. The report, "Priority Medicines for Europe and the World," identifies 17 conditions for which treatment is inadequate or nonexistent, and it maps out strategies for filling the gaps, using government-funded research, public-private partnerships, and adjustments to the incentives offered to industry. (The full report is available online at mednet3.who.int.prioritymeds/.)

Many companies get caught up in discussions with their agencies about rich media, paid search, and scalable databases. Yet most pharma companies still haven't mastered one important fundamental—developing a site that speaks to their audience and gives users the information they seek.

This article discusses some basic tactics that will help companies develop more relevant sites. It examines the issues of fair balance, content, information architecture, usability, and design. These elements, when executed properly, draw consumers into a site and keep them there.

Sandra Holtzman

NuSil Technology is a leading formulator of silicone compounds for aerospace, healthcare, electronics, and other applications requiring precise, predictable, cost-effective materials performance. ISO-9001 certified since 1994, NuSil operates state-of-the-art laboratories and processing facilities in both North America and Europe and provides on-site, in-person application engineering support worldwide. Earlier this year, the company announced the acquisition of Rhodia Silicones’ long-term implantable silicones business. Long-term implantable silicones are used in medical device products implanted for 29-days or more. Drug Delivery Technology interviewed Richard A. Compton, NuSil’s President & Chief Executive Officer, on how this acquisition demonstrates NuSil’s continued commitment to the healthcare industry, further strengthening its leading position as the supplier of choice for medical device manufacturers worldwide.

The prices of the 50 drugs most commonly prescribed to seniors rose, o­n average, at nearly 3.5 times the rate of inflation in 2002, according to a report released by Washington-based Families USA. The study compared 2002's price increases for generic versus brand-name drugs. It found that 15 of the top 50 drugs sold to seniors were generic drugs, and 35 were brand-name drugs. o­n average, prices for generics rose by 2.6%, and prices for brand-name drugs rose by 7.1%. Nine of the 15 generic drugs did not increase in price last year, while o­nly three of the 35 brand-name drugs did not increase in price

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MSL programs were a technical outgrowth of sales, but they have since evolved to partake in field-based clinical and educational efforts for companies’ products. However, in many pharma companies, that evolution has not gone far enough. Companies still continue to focus MSL activities o­n pushing information out rather than pulling it in from the field and integrating it into their decision-making processes. As such, companies are missing the opportunity to leverage MSLs within a sensory web.

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First Amendment protection of commercial speech got a big boost last month when the US Supreme Court ruled 5-4 that FDA's policy to limit advertising for pharmaceutical compounding is unconstitutional. Because the plaintiffs failed to separate the advertising policy and general FDAMA compounding provisions, the ruling kills the entire provision in the FDA Modernization Act of 1997 (FDAMA) that established a legal procedure for pharmacists to compound medicines to meet patient needs.

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Today, Biogen's billion-dollar flagship multiple sclerosis product Avonex (interferon beta-1a) faces stiff competition from Serono's Rebif (interferon beta-1a), launched in the United States in March 2002. Although the two were already competing in Europe, financial analysts and media following the MS market predicted massive market share erosion for Avonex, especially after the announcement that Pfizer had agreed to co-promote Rebif in the United States. Some contend that Biogen is too dependent o­n the sales of o­ne product and isn't strong enough in the short term to withstand Avonex losses. But as Biogen celebrates its 25th anniversary, Avonex's market share is holding steady at a healthy 50 percent; the company's new complex in Research Triangle Park, North Carolina, puts it o­n the map as a major manufacturer; and its leaders are confident that the big picture remians regardless of observers' gloom and doom about its product line.

Pharma industry budgets fared better than those for other sectors o­n Madison Avenue, but the economic downturn, pricing pressures, and September 11 took their toll o­n pharma's consumer and professional promotion. Spending o­n DTC advertising from January through September showed the smallest year-to-year increase since 1997 for the same time periods. Competitive Media Reporting (CMR) data show that DTC spend increased 13.5 percent to $1.97 billion from $1.73 billion in 2000. Network radio, outdoor, and local television were hit the hardest among advertising venues, while syndicated television, Sunday magazines such as Parade, and newspapers grew 87, 73, and 54 percent, respectively.

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