Pharmaceutical companies invest large sums of money on Research and Development (R&D) of innovative products. However, as they embark on drug discovery in a particular disease area, they often find themselves in a competitive hotspot. Hence, it becomes extremely critical to understand different disease area strategies of competitors, both current and future competitors, so as to create a segmented approach from the very beginning.
A tough screening criteria followed by assessment of barriers-to-success in the market must decide the flow of funds for product portfolios within an organization. This assessment involves identification of potential disease areas, which a company aims to focus on or have capabilities to scale and grow, from a competitive lens.
Additionally, it can help companies get a full 360 degree view of the competition, in terms of number of players, current and emerging pipeline, ongoing clinical trials and their results, and effectiveness of sales and marketing machinery.
The formulation of a disease area strategy is done through effective R&D to determine the potential risk and return that the therapeutic area will bring to the company. The assessment intends to select a disease that is likely to optimize a company’s investment on new therapeutic areas. Disease area strategy assessment takes into consideration a series of properties to evaluate the commercial opportunity. These include convenience, cost and safeness of the disease to be selected.
Disease area strategy assessment allows an organization to increase their drug platform healthcare services by having an R&D focus on the discovery of effective drugs for disease areas of high medical need that can bring value into the company. The assessment will help companies evaluate the trade-off between product attributes and to prioritize disease areas as appropriate. The disease area strategy also takes into consideration the reimbursement potential for the company, which implies the study of the regulatory framework to analyze how flexible are the policies related to the disease area.