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The article “Maximizing the Value of Drug Patents Before Losing Exclusivity” discusses strategies for biomedical companies to maximize the value of their drug patents before the exclusivity period expires.
In the world of medical and biotechnology companies, losing exclusivity on a drug patent doesn’t have to mean the end of profits. When a new drug competitor enters the market, anxiety might set in, but there are ways to ensure continued success even as the patent approaches its expiration date. Here are some savvy strategies for maximizing the value of drug patents before losing exclusivity:
1. Early Planning: It’s essential to start developing loss of exclusivity plans for a product at least two years before the drug patent expires. By implementing this plan early on, companies can efficiently build new drug brand relationships.
2. Venture into Over-the-Counter Drugs (OTC): Releasing an over-the-counter drug to the market broadens the customer base and reduces concerns about insurer repayment. Although there are costs involved in taking OTC drugs to market, the expanded customer reach can make up for it.
3. Create New Supply Systems: Innovating how drugs are supplied can thwart generic competition. For instance, developing longer-lasting drug versions that require fewer administrations can make the branded drug more appealing to patients compared to generics.
4. Stop Sales & Marketing: In certain situations with intense generic competition, some companies decide to halt sales and marketing activities but focus on adjusting their production levels. This allows the drug to remain in the market while reducing expenditure.
5. Consider the Generic Market: Companies can create their own generic version of a drug that’s about to lose exclusivity to mitigate the impact. They can opt for licensed generics, branded generics, or authorized generics, each with its own approach.
These strategies can significantly impact a company’s profits during the drug patent expiration phase.