The Role of

Marketing
P R E S E N T E D B Y

C I N D Y N O U F A L , L A R A K H A L I D , S U A D A L - M A S R I ,

V E R A M A S S A R W E H

M A R K E T I N G & P H A R M A C O E C O N O M I C S
CONTENT

Evolving Role of Marketing in

Biotechnlogy

Case I: Viagra

Case II: Enbrel

Case III: Natrecor

LAUNCHING
A DRUG
Typically planning the
launch of a drug takes
12-18 months. However,
early collaboration
between R&D and
marketing is crucial.
VIAGRA
MARKET SAVVY RESEARCHERS
DRIVE SUCCESS

One of Pfizer's BLOCKBUSTER Drugs.

Originally designed for Hypertension.

A side effect of increasing penile blood

flow was noticed during clinical trials.

Pfizer recognized the potential market

of Erectile Dysfunction (ED), and began

1998
trials specifically for that.

They finally received FDA approval for

ED.
 WHAT IS A
BLOCKBUSTER
DRUG?
A blockbuster drug is generally defined as a product that

$1
satisfies the following four criteria:

The drug must represent significant improvements in drug therapy

It must drive the growth of or even create, top-teen

BILLION
pharmaceutical companies

It should form a top rank of products with exceptional sales

Last, but by no means least, it should generate global sales of at

least US$ 1 billion.

 THE ERECTILE
DYSFUNCTION
MARKET

Viagra has revolutionized the way Erectile Dysfunction is treated.

First oral medication for ED

Replaced painful injections.

Opened the door for primary care

physicians to treat ED other than

just Urologists.

Pfizer's marketing savvy led to its abandonment of the original

indication to tap an untapped market.

FIRST TO MARKET
Viagra was racing against Vasomax a

similar drug competing for the same

market.

Luckily for Pfizer, Vasomax hit some

great obstacles and were not able to

make it to the market in time.

MEDIA EXPOSURE
The media attention given to the drug

pre- and post-launch was enormous.

There were testimonies from a number

of high-profile celebrities including

Playboy chief Hugh Hefner and chat-

show host Jerry Springer.

MEDIA EXPOSURE

NOV
1997
MEDIA EXPOSURE

MAY
1998
MEDIA EXPOSURE

MAY
1998
MEDIA EXPOSURE
Pfizer Hires Bob Dole for TV Ad Campaign

December 12, 1998

In May, Dole, 75,

acknowledged he participated
in the trials for Viagra, which he
has called "a great drug." Viagra
DEC
1998
was the most successful
introduction of a new
prescription drug in history.
MEDIA EXPOSURE
The Second Sexual Revolution

Newspapers of all sizes went crazy for a sex story given

urgency and currency by its links to big pharma, and an
unfamiliar national conversation about impotence.

The same year the hit TV show Sex & The City aired,
sex had become an open topic.

1998
VIAGRA FOR WOMEN?
Female Sexual Dysfunction Disorder

More than 50 million women experience some type of

sexual dysfunction.

Viagra was tested on women to see if it had the same

effect on them as men.

The study showed significant improvement in 202

women who the study was conducted on.
LAUNCH
April 1998

4.3 M
In the first week of its launch
prescriptions were written.
By the end of the year 7 million prescriptions had
been written. Viagra was being sold in 40 countries.

1998
Pfizer as a company grew 29%
12% growth attributed to Viagra
alone.
VIAGRA NOW
Patent Expiry

The patent for Viagra

expired outside the US 2012
Revenue from the pill in the EU, Japan and Australia
has shrunk from $472 million to $146 million.

2020
In the US market Pfizer holds the
patent for Viagra until
ENBREL
THE UNEXPECTED WINNER

Originally produced by Immunex

Failure to conduct early market research lead to the

acquisition of immune by Amgen.

Enbrel is marketed by Wyeth, and Amgen.

FDA Approval
1998
RHEUMATOID
ARTHRITIS
Market is estimated to be approximately

in the economically developed world and

2 million in the U.S. alone.

This drug proved effective without the

5M
usual side effects such as stomach

damage associated with currently

available drugs for pain and

inflammation.
MARKETING
AGREEMENT
Immunex signed a deal with American

home products corp (Wyeth). worth $100

million to market Enbrel for all indications

outside oncology.

SEPT
1997
MARKET SIZE
& PROJECTED SALES
In July 1998 overall potential of Enbrel was estimated to be 1.8

million patients, then expanded after accounting for patients

who failed traditional therapies, and the European market.

After hitting the market it was also approved for juvenile RA.

Projected sales for the first year (1999) was $139 million,

$341 million in 2000, and $441 in 2001.

However, during the first year alone actual sales reached

$360 M
MARKET SHARE
OUTCOMES
Good point is that Enbrel exceeded all the expectations and

became a blockbuster; it had overwhelming approval from

both patients and health care practitioners.

The approval of it for juvenile RA doubled the market

potential from 500,000-1000000 patients, and then they

realized the bad point, which was the underestimation of the

initial sales figures.

- Additional facilities were dedicated to manufacturing

Enbrel, however demand continued to exceed supply by July

2003 thousands were on the waiting list, and millions of

dollars were lost on revenues.

WHAT WENT WRONG?
No proper market search was performed on Enbrel, which led

to the underestimation of its market.

They correctly sized the attrition rate, rate at which patients

would try Enbrel but not the rate of patients who would

continue with it.

AHP and Immunex did not recognize that Enbrel was a

blockbuster until it was too late and manufacturing

constraints limited its success for three years.

If they had applied marketing resources to their research

efforts, Immunex would have had a different story today.

SUMMARY
Lack of effective marketing/ market development leads to

negative results at early stages of drug development.

Forecasting a market demand is more difficult for a first in

line revolutionary product than for an evolutionary product.

Earlier and more in depth stage market research at Immunex

would have led to millions more in revenue for Immunex and

its partner Wyeth and wouldnt have resulted in the

acquisition of Immunex by Amgen for

$16 Billion
NATRECOR
BETTER LATE THAN NEVER

Novel treatments for cardiovascular and inflammatory

disease.

Small moleculesfor large markets with unmet medical

needs

FDA Approval
2001
LICENSING
JANUARY 7, 2001

GlaxoSmithKline (GSK) and SciosInc. (SCIO)

announced that they have entered into an agreement

in which Scioswill license Natrecorto GSK in all

European markets.

The companies launched Natrecorin Europe in the first

2004
half of
Two and a half years and the marketing efforts were

still progressing.

88% of the targeted hospitals stocked Natrecor

FUSION ADHERE
Natrecor is a truly unique product for a largely

underserved and growing market," said Christine

Poon, worldwide chairperson for J&J's

pharmaceuticals group. Feb, 2003

$2.4 Billion
OPTIMIZING THE
MARKETING FUNCTION
Some of the general observations that might help

maximize commercialization efficiencies are :

1. Partnering at early stage of drug development

example: CURIS and its partnership with Genetech ,

Wyeth and JNJ

This partnership helped CURIS in:

*Attaining upfront cash and share of future profits if

the drugs reach the market

*Increases the probability of these drugs in making

it to the market based on expertise opinion

OPTIMIZING THE
MARKETING FUNCTION
2.Early stage market development

Science driven companies

Limited financial resources

Functions are interrelated and no marketing

How to establish an early marketing development

function:

1. People who are qualified to conduct this activity

2. Attention , an early realization from senior

management of the importance of marketing

OPTIMIZING THE
MARKETING FUNCTION
Example on company that made a successful

transition from a small biotechnology to a leading

biotechnology company is Genentech.

A FRAMEWORK FOR EFFECTIVE
MARKET PLANNING AND
ANALYSIS
Gives key insights into go/no go decisions, optimal

indications, clinical outcome endpoints and economic

benefits

Gives information about potential end users and their

acceptance towards the product

Allows selection of optimal indications example Viagra

Market research focused on future consumers plays an

important role in clinical outcome endpoints

Allows biotechnology companies to link economic

benefit to clinical benefit

SUMMARY
To conclude, early incorporation of marketing into

drug development has many benefits but if some

companies neglect that aspect this might lead to an

underestimation of the market size and potential

loss of millions of dollars Example , Enbrel

In the case of Netrecor it could have reached its

peak sales sooner had it identified the potential

synergies earlier and done a more thorough

assessment .
THANK
YOU