Our global pharmaceutical client had a product whose patent was expiring within a year. The client wanted to understand the potential impact of generic competition on its brand in key revenue markets. Prescient was engaged to develop tactics to defend market share in these markets by:
- Identifying key generic competitors and anticipating their global strategies and regional tactics
- Forecasting dynamics for markets that could become the most competitive
- Supporting affiliates in developing evidence-based tactics to counter competition
- Examining the potential market share impact
Shaping Decisions | Driving Value
Prescient undertook a multi-step program to support the client in developing effective life cycle management (LCM) strategies and tactics. It began by gathering intelligence (via secondary and primary research) to identify the expected generic competitors and country-level dynamics based on stakeholder discussions. Prescient then developed models of anticipated strategies and tactics of all generic competitors, based on historical data, competitors’ goals, presence in various regions and internal prioritization given to the in-focus generic. The models were refined according to the anticipated market scenarios for the key revenue markets.
The scenario models for each of the key affiliates were used in affiliate workshops to drive brainstorming discussions. The workshops helped develop LCM tactics to enable key affiliates to effectively defend the brand’s market share.
The Prescient Advantage
At a knowledge level, the engagement helped affiliate teams be more informed of local competition and gain critical context about how the competitor activities may have an impact on their market shares. Prescient’s holistic view of the markets and competitors helped affiliates anticipate specific scenarios in their countries following patent expiration.
On a strategic and tactical level, Prescient’s engagement helped the global, regional and affiliate teams make specific LCM decisions to extend the brand’s profitability.
- The global team was able to time its exit decisions more strategically
- The regional teams were able to develop regional value propositions to help affiliates design market-centric defense tactics
- The affiliates were able to make informed tactical decisions, which included some affiliates changing
their tender policies and others negotiating long-term contracts. Pricing strategies were modified, with some affiliates aggressively bidding for key accounts in their market and opting out of smaller, low-profit accounts
At an organizational level, the client had a motivated team working cohesively and armed with specific counter-tactics. Affiliates became more responsible for the brand’s performance. The global and regional teams understood the threshold where the brand may become unprofitable in specific markets, so there was clear top-down guidance that improved the efficiency and implementation of any decision.