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Addressing the threat of generic drugs

Helping a top ten pharmaceutical company capture additional value

Our Client's Challenge

Our client, a top ten pharmaceutical company, manufactured a blockbuster drug that went off patent. A major competitor began to launch a lower-priced generic equivalent but encountered serious manufacturing issues and withdrew their product from the market. The client wanted to know:

Will the generic competitor re-launch their much-lower-priced product?    If so, when?

Scientia Advisors' Approach

Our team brought two key components to the research work performed for the client on this project:

• Key relationships with individuals and entities across the value chain including pharmacists, wholesalers and manufacturers.
• Unique and honed interviewing skills allowing efficient and targeted intelligence gathering.

Our thorough research led us to conclude that:

• The competitor faced formidable manufacturing issues.
• It would simply be too costly for the competitor to reformulate and re-test their product.

The conclusion we shared with our client was:
The generic product would not be relaunched.

The Results

As a result of our work, our client took two strategically critical steps:

• Preserved their pricing.
• Armed their sales force with an aggressive message which, in turn re-energized their selling efforts.

Consequently, our client captured millions of dollars in revenue that they would have foregone had they lowered their price in the belief that they needed to compete with a generic product.