Pivot Examples- Pharmaceutical Industry

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Pharmaceutical Industry Pivot Examples - Technology

Two examples of technology pivots in the pharmaceutical industry include Novartis and GlaxoSmithKline. Both implemented new technologies with the main aim of improving the discovery, development, manufacturing, and performance of their drugs. Below are the detailed findings on the request.

Novartis

Why the Company Pivoted

  • According to the company CEO, Vasant Narasimhan, the company had to pivot because of the intense competition from other large branded biopharmaceuticals and emerging of the value-based care models.
  • Therefore, to keep up with the trend and stay competitive, the company laid off 2,200 employees in September 2018 (this was when the company began pivoting), as a part of the ongoing restructuring plan through 2022.
  • The restructuring plans are to move the company from a traditional high-volume blockbuster model to more precision-targeted medicines representing higher-value markets. To achieve this, Novartis is using new technology platforms to generate transformational drugs.

The Original Idea

How the Company Pivoted


GlaxoSmithKline (GSK)

  • GlaxoSmithKline is a global healthcare company that specializes in developing, manufacturing, and marketing of pharmaceuticals drugs. The company's drugs focus on six areas, namely, oncology, respiratory diseases, Immuno-inflammation, rare diseases, vaccines, and human immunodeficiency virus (HIV)/infectious diseases.

Why the Company Pivoted

The Original Idea

How the Company Pivoted


Research Strategy

To provide examples of technology pivots in the pharmaceutical industry, we began our search by going pharmaceutical industry reports such as Pharmaceutical Manufacturing, Pharmacy Times, Pharma Times, Mobi Health News, among others. We also went through third-party sources such as Ai Business, Forbes, CNBC, Trial Site News, and others. From these sources, we could find all the relevant information needed to answer the research criteria.

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Pharmaceutical Industry Pivot Examples - Channel

Two examples of companies in the pharmaceutical industry that had channel pivots are GSK and AstraZeneca. GSK had announced in 2018 the revamp/pivot of its distribution channels by veering to using wholesalers to distribute its products while AstraZeneca announced in 2019 the revamp/pivot of its distribution channels by shifting to single agent DTP distribution model. Below are the details on how and why this channel pivot was done.

GSK's Move To 'Simplified' Distribution Model

How Pivot Was Done
  • The leading pharmaceutical company GSK had announced in 2018 the revamp/pivot of its distribution channels by veering from its current direct-to-pharmacy (DTP) distribution model to using wholesalers to distribute its products.
  • Under the new channel pivot, GSK tied up with pharmacy wholesalers such as Phoenix UK, AAH, and Alliance Healthcare for the first time to distribute its prescription medicines to community pharmacies, hospitals, and dispensing doctors across the country.
  • Under the new distribution channel pivot, GSK customers could now purchase medicines directly from specified wholesalers as well as by leveraging GSK’s vaccine portfolio online ordering platform, thereby simplifying the purchase process.
Original Model/Idea And Why Pivot Was Done
  • Under the direct-to-pharmacy model which was earlier used by GSK, the company sold products directly to pharmacies and appointed a limited number of logistic service providers (LSP) to deliver the medicines on its behalf.
  • The traditional wholesalers (or logistics service providers) were primarily leveraged to hold their stock on a consignment or agency basis rather than transferring title of the goods.
  • The company primarily undertook the channel pivot to change the way it's distributed its pharmaceutical medicines and vaccines in the UK and help reduce complexity for its pharmacy, hospital, and dispensing doctor customers.
  • GSK's channel pivot received extremely positive industry response and was termed as "historic" and "incredibly positive for community pharmacy" wherein it would help pharmacies deliver consistency in service and increase patient loyalty and hence become effective.

AstraZeneca's Shift To Single Agency DTP Distribution Model

How Pivot Was Done
  • AstraZeneca, which is an English-Swedish multinational pharmaceutical and biopharmaceutical company, had announced in 2019 the revamp/pivot of its distribution channels by veering from multiple agent DTP distribution model to single agent DTP distribution model.
  • Under the new channel pivot, the company entered into an exclusive direct-to-pharmacy (DTP) distribution agreement with AAH under which AAH became the sole distributor of AstraZeneca products to all pharmacies in the UK.
  • Under the new distribution channel pivot, all AstraZeneca customers, including pharmacies, hospitals, and dispensing doctors across the UK, would only be able to purchase AstraZeneca products through AAH, thereby consolidating the entire distribution channel of the company to a single agent.
Original Model/Idea And Why Pivot Was Done
  • The company earlier leveraged a multiple agent DTP model for the distribution of its medicines in the UK and had adopted the same back in 2008.
  • Under the DTP model, the company itself sets the price paid by pharmacies and pay wholesalers a fee for delivering their medicines according their required service standards. There was no convention covering the level of discounts to pharmacies in these circumstances.
  • The new channel pivot was primarily undertaken by the company to simplify its existing distribution network model and help meet "sustainability, environmental and economic objectives".
  • AstraZeneca wished to provide to its customers and approximately one million patients using its medicines with an effective, less complicated, and efficient distribution network, and hence it undertook this channel pivot.
  • As per the company, the channel pivot is extremely effective as it allows them to have a direct channel of communication and to better understand the needs of its customers and the UK pharmaceutical supply chain environment.
  • Additionally, it allows the company to partner more directly with its customers to ensure that a modern effective supply and delivery service is in place at all times.
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Pharmaceutical Industry Pivot Examples - Engine of Growth

Hoffmann-La Roche Ltd., the pharmaceutical company has changed from traditional medical treatment to digital application which helps to monitor the rheumatoid arthritis disease effectively. Meanwhile, Pfizer, a leading pharmaceutical brand, has pivoted to digital mode of channel to focus on virtual reality marketing with the aim to target population in the age group of 30s.

F. Hoffman-La Roche Ltd's Pivot in Viral Engine of Growth

Viral engine of growth refers to increase in awareness of the product or service by using the existing customers.

How and Why The Company Pivoted:

  • McKinsey research shows that customer satisfaction truly matters in the pharmaceutical sector. By paying more attention to the customer experience, companies can not only increase satisfaction but also boost sales and market share.
  • Many pharmaceutical companies have launched an application that addresses pain points along detailed information on patient and prescriber journeys. In this way, the companies can increase customer satisfaction, improve adherence, and boost revenues with the use of the application.
  • In the United Kingdom, more than 690,000 people are diagnosed with rheumatoid arthritis and have received treatment. Patients are more interested in tracking and proactively managing their disease and thus they have decided to find a digital solution that would help them do this.
  • Working with National Rheumatoid Arthritis Society (NRAS), F. Hoffmann-La Roche Ltd., the pharmaceutical company recognized that in the UK, rheumatoid arthritis patients needed to be able to more easily track and proactively manage their disease, and decided to find a digital solution that would help them do this.
  • Roche UK and the NRAS worked together to develop a mobile app which allows users to monitor their disease with self-assessments in between consultations.
  • Roche, along with other pharmaceutical companies, launched an application that acts as a digital companion for patients which in turn leads to an 8% growth in revenue for its new rheumatoid arthritis therapy.

The Original Idea:

  • Traditionally, pharmaceutical companies launched new drug or medical device with its clinical efficacy, safety, superiority to alternatives, and its ease of use. Originally, the goal was to address patients’ medical needs and prescribers’ professional needs.
  • Initially, researchers at Roche began to investigate the causes of rheumatoid arthritis, which resulted in the discovery of innovative new therapies that target the key drivers of inflammation in this disease and address a considerable unmet need. These solutions have helped change the way that rheumatoid arthritis is treated and make a positive difference to patients’ lives.
  • Focusing too narrowly on clinical value often leads the company to neglect a powerful driver of launch success; that is, the customer experience which in turn increases the awareness of their product or service they use by their experiences.
  • Roche has shifted from traditional treatment, "MabThera/Rituxan and RoACTEMRA/ACTEMRA", to new and innovative digital application which helps to monitor the disease effectively.


Pfizer 's Pivot in Paid Engine of Growth

The paid engine of growth refers to paying others to get customers. Paid engine of growth could be in the form of ads, rent for locations, and payment for sales functions.

How and Why The Company Pivoted:

  • Pfizer pushed out commercials for its breast cancer therapies, regeneron pharmaceuticals launched a direct-to-consumer campaign for its blockbuster eye treatment and many other pharmaceutical companies pivoted into the world of virtual reality marketing.
  • To target companies population in their 30s, Pfizer pivoted to a digital mode of channel. This is because they get enough time to tell both the story behind a drug and the safety and efficacy information required by regulators.
  • Due to this, the awareness for their cancer and immunology treatments has increased. Moreover, some of the brands in HIV are also focusing a larger share of their spend on digital advertisement.
  • In 2016, Federal Trade Commission mentioned the relationship between DTC advertising and online search frequency. The effects of advertising are varied by media type by broadcast and internet having the strongest associations with increased searches.
  • As digital and social media increase in ubiquity, DTC pharmaceutical ads have proliferated on these platforms and research has shifted its focus to match producing scholarly content analyses of digital ads with social media content.

The Original Idea:

  • According to Jon Swallen, Chief Research Officer, Kantar Media, TV ad spending by pharmaceutical companies has more than doubled from 2012 to 2016, making it the second-fastest-growing category on television.
  • Earlier, the focus of advertisement was for the 65-year old and above, and that’s the population that was interested in watching television only.
  • According to marketing analytics provider iSpot.tv, in terms of television ads, 187 commercials for about 70 prescription medications have been collectively aired almost half a million times in early 2018 by Pfizer.
  • Pfizer spent $1.52 billion, down 5% in TV ads from the previous year 2017 and shifted its focus on digital ads to target younger generations more.

Research Strategy:

To obtain information for examples of engine of growth pivots in the pharmaceutical industry, we searched through research reports such as medical journals and pharmaceutical specific industry reports such as Mckinsey, biopharmadive, journalistsresource.org and other industry specific blogs such as stevebizblog.com and eyeforpharma.com. After thoroughly examining the sources, we were able to identify two examples of engine of growth pivots in the pharmaceutical industry, namely Hoffmann-La Roche Ltd ‘s Pivot from Viral Engine of Growth (traditional treatment to digital applications) and Pfizer’s pivot from television advertisements to digital advertisements.
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Pharmaceutical Industry Pivot Examples - Value Capture

Pfizer and Daiichi Sankyo are two examples of global pharmaceutical companies that have recently done a value capture pivot. Both Pfizer and Daiichi Sankyo pivoted their previous revenue model to focusing on the oncology business. Below are the explicit details on the request.

Company #1: Pfizer

  • Pfizer, founded in 1848 and based in New York, NY, USA, is "a leading research-based biopharmaceutical company." The company's primary-care medicine segment is what made it one of the world's biggest drugmakers.
  • Currently, the company is pivoting and focusing more on its oncology segment to boost its revenue growth. Pfizer decided to value capture pivot because its facing competition for its generic-drug, Lyrica (Pregabalin), one of its top-selling drugs to treat nerve pain, which lost its US patent exclusivity in June 2019.
  • The company is focusing on oncology because it requires a smaller sales force to market it to hospitals and cancer doctors compared to the energy needed to market and sell cholesterol and hypertension medicines to primary-care physicians. Additionally, global cancer medicine sales are growing at 11% per year.
  • Pfizer started focusing on cancer drugs by hiring leading scientists and collaborating with prominent cancer experts in academia to build its cancer capabilities and speed up its drug developments.
  • Pfizer's current oncology-drug portfolio includes small molecules, biologics, and immunotherapies across wide-range of cancers, such as Ibrance (Palbociclib), one of the company's leading product, and was among the ten blockbusters drugs (or drugs that generated $1 billion or more in terms of sales) in 2018. The drug is used to treat HR-positive and HER2-negative breast cancer; in 2018, Ibrance generated $4.12 billion in sales globally.
  • Pfizer's oncology-drug portfolio segment generated $7.20 billion in terms of sales in 2018, which was second to its commercial drug portfolio behind internal medicine which earned $9.996 billion in 2018.

Company #2: Daiichi Sankyo

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Pharmaceutical Industry Pivot Examples - Business Architecture

Two examples of business architecture pivots in the pharmaceutical industry include Pfizer's pivot from volume to a value-based model and Bristol-Myers Squibb's pivot from a mass-market drugmaker to a specialist niche player.

1) Pfizer's Pivot From Volume to Value-Based Model

How the Company Pivoted

  • Pfizer offers a value-based business model by identifying various customers according to the value proposition. The value proposition provided by the company varies for each customer, but in general, they present a value proposition that is "either clinically differentiated, or safer," and a quality metric as part of their product offering.
  • In moving from volume to a value business model, Pfizer employs both quantitative and qualitative studies to determine the metrics clients seek individually, as well as identify if they utilize EMRs or physicians. By the time they identify their customers, they present a business-to-business model that would assess their unique requirements to make judgments on ways to supply value to them.
  • According to Pfizer, businesses must have insight into the things customers seek, and it is important to reject the one-size-fits-all method so the company can convert to a value-based business model.
  • For Pfizer, comprehending the overall patient journey is vital to transitioning from volume to a value-based model because a pill is merely a segment of the equation, and what matters most is enhancing patient adherence, advising providers on certain protocols, or alerting physicians of the need for additional screening due to them under-diagnosing a specific issue.

Why the Company Pivoted

  • The company pivoted its business architecture because the industry is being compelled to decrease care expenses without jeopardizing quality or safety.
  • Also, the company pivoted its business architecture from paying for volume to paying for value, centering the exchange around customers since U.S. healthcare is spending higher (18% of GDP vs 9-11% for other developed nations), and costs are increasing remarkably.

Original Idea

  • The original idea was to shift from a traditional business model, which is a volume-based model, into a value-based one, determine suitable clients, and comprehend their requirements.
  • The company's original idea concentrated on evolving alongside their clients and conforming to their shifting demands.


2) Bristol-Myers Squibb's Pivot From Mass-Market Drugmaker to Specialist Niche Player

  • Bristol-Myers Squibb is a worldwide biopharmaceutical entity aiming to discover, create, and provide innovative medicines that assist patients in combating severe illnesses.

How the Company Pivoted

  • Bristol-Myers Squibb pivoted its business architecture by concentrating on transforming into a manufacturer of specialty drugs for intricate illnesses while divesting its company's stakes.
  • The company's restructuring plan involved the sale of its share of the diabetes alliance joint venture it had with another business, AstraZeneca. For its share, Bristol-Myers Squibb was set to be awarded approximately $4.3 billion.
  • It was improbable that Bristol-Myers Squibb's transition would involve buying or selling assets since the company's previous blockbusters (e.g., Plavix and Avapro) were affected by generic drug sales.

Why the Company Pivoted

  • Despite the company's increased drug sales revealed by its Q4 2013 results, there was a 21.5% downfall in its profits over the same quarter in 2012.
  • Bristol-Myers Squibb pivoted its business architecture, hoping this action would allow it to generate higher margins in the long term.
  • The company also believed, though results were unsatisfactory, the progress with restructuring would lead to shareholders ultimately benefiting from the process.

Original Idea

  • Bristol-Myers Squibb's original idea was to proceed in witnessing notable progress concerning its restructuring program and to transform the company "from mass-market drugmaker to specialist niche player," hoping that it would improve margins for the business.


Research Strategy:

To provide at least two examples of business architecture pivots in the pharmaceutical industry, we leveraged a compilation of market reports and industry insights specific to pharmaceutical companies. We searched through trusted resources and found some helpful information from business media sources such as EyeforPharma by Reuters Event and The Motley Fool. After thoroughly examining the sources, we identified two such examples that satisfied the criteria. We considered our findings against the criteria and ensured the examples were not more than eight years old.
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Pharmaceutical Industry Pivot Examples - Platform

McKesson Corporation and Sigma Healthcare are two examples of pharmaceutical companies that have recently had platform pivots. Both pharmaceutical companies pivoted their previous platform to the cloud. The next sections provide full details of the platform pivots, with a specific focus on how these companies pivoted, why they pivoted, and what their original ideas were.

McKesson Corporation

Sigma Healthcare

Research Methodology

Your research team reviewed and examined multiple reports published by healthcare companies, technology companies, and press releases released by the respective pharmaceutical companies that pivoted their platforms. On that note, we came across a press release by McKesson Corporation regarding its shift to a cloud-based platform. Equally, we found an article by ZDNet, a business technology website about Sigma Healthcare's transitioning to a cloud-based wholesale ordering platform. Using these two reports, we managed to unearth the findings of how these companies pivoted, why they pivoted, and what their original ideas were. Overall, the details are included above and under specific sub-titles.
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Pharmaceutical Industry Pivot Examples - Zoom-Out

Gilead Science's Odefsey and Otsuka America Pharmaceutical's Abilify MyCite System are two examples of zoom-out pivots in the pharmaceutical industry.

Gilead Science: Odefsey

Original Idea:

How And Why It Was Pivoted:

  • Gilead Science was exploring the efficacy and safety of a new drug Odefsey they were developing by combining Gilead’s emtricitabine and tenofovir alafenamide with rilpivirine which was contained in their existing products Complera and Atripla.
  • This drug comprises 3 different drugs that were combined in one tablet which will help HIV patients to live "longer, healthier lives" and also minimizes the risk of transmitting HIV.
  • According to Gilead's executive, "there is an increasing need for safe and tolerable treatment options to help address the long-term health needs of people living with HIV" which is the reason the company is exploring new drugs to help patients. This is evidenced with the company's mission in developing new treatment options that address the unmet needs of HIV patients.
  • In March 2016, Odefsey was approved by FDA.


Otsuka America Pharmaceutical: Abilify Mycite System

Original Idea:

  • Otsuka America Pharmaceutical's Abilify MyCite is originally intended for treating "schizophrenia in adults, the acute treatment of manic and mixed episodes associated with bipolar/disorder in adults, and adjunctive treatment of major depressive disorder in adults".
  • This product was approved by FDA in 2017.

How And Why It Was Pivoted:

  • The company is aware that most patients with major psychiatric disorders have low medication adherence either because of side effects of the drug or the patient's denial on their prognosis. Thus, there have been poor health outcomes among patients.
  • Due to this, the company developed a system which is a "drug-device combination of products consisting of aripiprazole tablets embedded with an ingestible event marker (IEM) sensor, MyCite app, wearable sensor patch" and web-based portal for tracking drug ingestion and adherence.
  • The medicine aripiprazole has an embedded sensor in the tablet which when taken transmits signal to the patch. Adherence can be monitored through the app in which caregiver or healthcare professional can monitor it via web portal.

Research Strategy:

In order to provide 2-3 examples of zoom-out pivot, the research team looked for pharmaceuticals industry that have pivoted their product with an original single feature and changed it to encompass a larger version of the product. From this, we found two examples which matched the criteria: Odefsey by Gilead is a combination of 3 HIV medicines which is already contained in their other existing products (Complera/Atripla) but have been combined to develop a new drug that is a safe and tolerable treatment options. Otsuka Pharmaceutical's Abilify MyCite System is a drug-device product combination to add new features such as tracking medication adherence among patients who take aripiprazole tablets.
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Pharmaceutical Industry Pivot Examples - Zoom-In

Janssen and AstraZeneca are two pharmaceutical companies that are embracing zoom-in pivots (what in the pharmaceutical industry is more commonly called drug repositioning). Janssen repurposed ketamine as a Spravato, a new antidepressant for treatment-resistant depressions. And, AstraZeneca is working with Yale to finish promising clinical trials that would allow the repurposing of saracatinib as an Alzheimer's treatment.

Background

  • Zoom-in pivots designates a change in marketing strategy to focus on one aspect of a product (as a result of consumer research/testing) rather than all aspects originally intended. For example, Justin.tv was a live streaming site that focused on how an audience was reacting to the content they were watching. In product testing, the company decided to focus the product on live streaming gamers while they were playing video games because this was the market most likely to use the product.
  • On average, it takes 10 years and $2.6 billion to develop a new medication. Hence, early market testing of a drug designed for a specific purpose (perhaps a drug that can treat a variety of diseases of syndromes) to pivot--zooming-in--to a more narrow focus is not likely to be profitable.
  • In the pharmaceutical industry, a recent trend that most resembles the zoom-in pivot is drug repositioning or repurposing. This strategy saves time and money because the compound/molecule/biologic tested has already passed expensive hurdles of clinical trials. And, when off-label uses are serendipitously discovered in clinical trials, the pivot to marketing it for an off-label use most resembles zoom-in pivots.
  • Two famous serendipitous discoveries of off-label or secondary uses (repositioning) of medication are Viagra and Rogaine.
  • Viagra (Sildenafil), was developed to treat angina, but during Phase 1 clinical trials, the compound did not show an effect on angina, but it did cause unintended erections. Pfizer then pivoted to market this drug to treat erectile dysfunction.
  • Rogaine (Minoxidil) was originally developed to lower blood pressure in patients. However, during clinical trials, 60-80% of patients reported unusual hair growth. Hence, minoxidil was repurposed to treat alopecia.

Zoom-in pivot #1: ketamine/Spravato

  • Ketamine was originally developed by Parke-Davis pharmaceutical company, in the 1970s, as an anesthetic--to be used in surgeries. Ketamine continues to be used in surgeries to this day.
  • However, researchers have observed that one unintended effect of a ketamine dose is a very dramatic, spontaneous recovery from crippling and untreatable depression. Many antidepressants take two weeks or more to start working, whereas ketamine's effects were immediate.
  • Janssen, a pharmaceutical company owned by Johnson & Johnson, recently got FDA approval to sell Spravato, which is a variation on the ketamine molecule, to treat depression that is otherwise resistant to other medications.
  • Marketing projections predict that Janssen will enjoy a $600 million profit due to Spravato by 2022.

Zoom-in pivot #2: Saracatinib/Alzheimer treatment

  • AstraZeneca originally developed this compound to treat various cancers but discovered in clinical trials that it was not effective.
  • AstraZeneca then chose to collaborate with Yale researchers to discover other, serendipitous effects of the medication through its Open Innovation program.
  • In animal studies, a Yale researcher had identified an enzyme, Fyn, that plays a crucial role in disastrous cellular changes resulting from Alzheimer's. This same enzyme was found to block this enzyme and its effects during clinical testing of saracatinib.
  • Hence, AstraZeneca partnered with Yale researchers to develop the drug to treat Alzheimer's.

Research Strategy

The team first focused on searching pharmaceutical industry reports (e.g., Pharmaceutical Manufacturing, Pharmacy Times, Pharma Times, etc.) that applied Eric Ries' concept of zoom-in pivoting to pharmaceutical marketing. We did not find any articles that directly used this concept to describe practices among companies.

We then set out to search, in the same publications, for articles or reports that describe strategies that pharmaceutical companies used to change their marketing or business strategy with medications and discovered the concept of repositioning and repurposing. Both of these strategies are now consciously adopted by the pharmaceutical industry to new compounds that have either proven ineffective in clinical trials in treating diseases/syndromes for which they were developed or to compounds that have off-label uses/unintended effects.

The team then researched, in the same periodicals, recent examples of serendipitous repositioning/repurposing of drugs and discovered Spravato and saracatinib. Having discovered these two repurposed drugs, we then located sources from press releases (e.g., Pharma times or the Guardian) the manufacturer's websites, for a deeper dive into the reasons for repurposing.
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Pharmaceutical Industry Pivot Examples - Customer Segment

Myovant and Purdue Pharma are two companies that were able to keep the functionality of their products the same but changed their target market and audience.

Myovant

  • Myovant is in the process of creating Relugolix, a drug aimed at prostate cancer patients. Phase 3 clinical trials illustrated that around 96.7% of patients treated with Relugolix enjoyed a sustained testosterone suppression.
  • While Relugolix was first designed for a male audience, the company looked for more applications of the drug, and it was tested for treating uterine fibroids in women with heavy menstrual bleeding. The Motley Fool noted that the drug is situated to transform into a "leading treatment option for women with uterine fibroids."
  • Seeking Alpha noted that there is about a 75% chance that the FDA will approve the drug for uterine fibroids, which will boost Myovant's sales revenue.
  • With its Relugolix GnRH inhibitor, Myovant aims to directly compete with pharma giant AbbVie in the women's health application space. However, the company is waiting for the "12-month safety data from its SPIRIT phase 3" program with results due in 2020.

Purdue Pharma

  • Purdue Pharma's OxyContin is used for severe pain and was initially targeted towards the adult population. In 2015, the FDA approved its use in children aged 11-17.
  • Sharon Hertz, the FDA's CDER director of the Division of Anesthesia, Analgesia, and Addiction Products, stated that the opioid drug OxyContin is safe to use if developed appropriately, and it is the first such drug to be administered in pediatric patients.
  • Drug tests and clinical trials on children can be costly and troublesome, which is why pharmaceutical agencies usually bypass evaluations, except for cases where a sizable pediatric market is available. To counter this trend, the FDA approves an additional six-month extension of patent protection on any formulations involving studies on children, and that is one of the primary reasons why Purdue Pharma pushed for the testing of OxyContin among children.
  • Experts and lawmakers criticized the company as children could become addicted to the drug while in a physicians care or when they are older.


Research Strategy:

Our research began by searching for reports on large pharmaceutical companies that alter their audience focus, including from B2B to B2C, B2C to DTC, NGO to end-users, or vice versa. However, we primarily came across changes in a business model, such as Pfizer investing more in DTC ads and Novartis changing its sales effort from mass market to a target-market, which are company wide efforts. As such, we could not find specific examples and case studies of products from large pharma companies having the same functionality or formulation and then targeted using B2C, B2B, OR DTC business models.

We then searched for specific drugs with the same functionality or formulation that were targeted to different markets and segments. Myovant's Relugolix first targeted a male audience, but following clinical tests, it is also useful for the treatment of uterine fibroids. Meanwhile, Purdue's OxyContin was tested on children, and it helped the company to extend their patent from the FDA as the organization permits an additional six-month patent extension for companies conducting clinical studies involving children.
Sources
Sources

From Part 05
Quotes
  • "As pharma faces transition from traditional business model to a value-based model, identifying appropriate customers and understanding their needs becomes crucial for each organization."
Quotes
  • "This program will see Bristol-Myers Squibb transformed from mass-market drugmaker to specialist niche player. Company management hopes that such a move will enable the business to deliver higher margins in the long run."
From Part 07
Quotes
  • " “As people are living longer with HIV, there is an increasing need for safe and tolerable treatment options to help address the long-term health needs of people living with HIV,” said Norbert Bischofberger, PhD, Executive Vice President, Research and Development and Chief Scientific Officer, Gilead Sciences."
Quotes
  • "The Abilify MyCite system, distributed and marketed by Otsuka America Pharmaceutical, Inc., is a drug-device combination product consisting of aripiprazole tablets embedded with an ingestible event marker (IEM) sensor; a MyCite wearable sensor patch that detects the signal from the IEM sensor after ingestion and transmits data to a smartphone application"
From Part 08
From Part 09
Quotes
  • "With hundreds of thousands of new prostate cancer patients diagnosed in the U.S. alone, there's plenty of potential for Myovant to hit a financial home run if its drug receives U.S. Food and Drug Administration approval. At the same time, this drug is well-positioned to become a leading treatment option for women with uterine fibroids."
  • "Myovant has been developing a drug called relugolix, which is being tested in men with androgen-sensitive prostate cancer. Its recent phase 3 HERO trial demonstrated that the vast majority of men taking a once-per-day relugolix pill were able to reduce testosterone levels significantly and slow down the disease's progression."
  • "Relugolix had also been tested as a treatment for another condition. Earlier this year, Myovant announced impressive results for another phase 3 trial with the drug, which targeted women with uterine fibroids, a condition where noncancerous tumors develop inside the uterine wall. Myovant's relugolix had shown showed significant improvements in reducing the excessive bleeding that results from the fibroids."
Quotes
  • "Shifting gears, let's check relugolix advancement for the uterine fibroid franchise. Accordingly, Myovant reported strong data for the LIBERTY2 trial in July this year. Of note, the said Phase 3 study assessed relugolix combinations (i.e. relugolix 40mg plus estradiol 1.0mg and norethindrone 0.5mg) in women suffering from uterine fibroids with heavy menstrual bleeding."
  • "In 1Q2020, Myovant plans to publish the 12-months safety data of the other LIBERTY trial. In my view, there is a 75% (i.e. extremely favorable) chance that the results will be positive and thereby sparks another rally. Though each stock behaves differently, I believe that a robust report would galvanize a rally for Myovant."
Quotes
  • "Myovant is in a head-to-head battle with AbbVie and its rival GnRH inhibitor Orilissa (elagolix) in endometriosis-related pain and uterine fibroids, but has a clear run at the prostate cancer market as AbbVie has halted development in that indication, according to Adis Insight."
  • "Orilissa has been approved in endometriosis and filed for uterine fibroids, while Myovant is still waiting for phase 3 data from its SPIRIT phase 3 programme for relugolix in endometriosis, with results due next year."
  • "Myovant is locked in a battle with AbbVie for women’s health applications of its GnRH inhibitor relugolix, but a planned regulatory submission in prostate cancer sidesteps its main rival."
Quotes
  • "The U.S. Food and Drug Administration said it has approved the use of the painkiller OxyContin in children as young as 11, for severe pain that can’t be adequately treated with other medications."
Quotes
  • "Unlike adults, children must already be taking and tolerating a minimum dose equal to at least 20 milligrams of oxycodone per day for 5 consecutive days before they can be prescribed an equivalent dose of OxyContin, Hertz says."
  • ""OxyContin is not intended to be the first opioid drug used in pediatric patients, but the data show that changing from another opioid drug to OxyContin is safe if done properly," Hertz says."
  • "The FDA will require Purdue Pharma to do postmar"
Quotes
  • "When the pain drug OxyContin (oxycodone) was approved by the FDA recently for use in children ages 11 to 17, there was a significant amount of outrage among clinical experts, Congressional leaders and patient advocates, who could easily envision a child becoming addicted to this Schedule II drug—either while under a physician’s care or later in life. "
Quotes
  • "Drug tests on children are difficult and expensive, and so drug companies tend to skip them, unless there’s a big pediatric market. So, the FDA came up with a way to entice companies to do the right thing: In exchange for doing the studies, the FDA grants the company an extra six months of patent protection on all formulations of the product. And Purdue took the bait."