Formulation and Delivery as the New Pharma Strategy
A dearth of new molecules and impending patent cliffs have turned drug-delivery technologies into a hotbed for innovation, with companies desperate to gain an edge over rivals, says Lux Research.
BOSTON, Nov 29, 2011 (BUSINESS WIRE) -- Confronted with a big patent expiration cycle this decade, and the lack of follow-on blockbusters, drug companies struggling for new sources of growth are turning towards new forms of innovative delivery technologies to sustain growth, according to a Lux Research report.
Drug companies are using newer drug-delivery methods to increase their chances of getting regulatory approval, turn around previously undeliverable or toxic compounds, extend product lifecycles and differentiate their products, according to the report titled, "Ranking Emerging Delivery Technologies: Tools for Making Old Drugs New and New Drugs Work."
"Drug delivery technologies do more than just deliver drugs. Sometimes, the choice of a drug-delivery system can make or break the commercialization of a drug through its effect on consumer behavior," said Yan Xiang Yang, Lux Analyst and the Lead Author of the report. In these circumstances, "finding the right system is a highly technical process specific to each delivery technology; but for investors, business execution and potential for growth are key," she added.
The report uses the Lux Innovation Grid -- a framework to analyze developers of a variety of technologies -- to identify tomorrow's technical and financial winners and losers. It assesses companies with emerging delivery technologies on their Technical Value and Business Execution, sorting the players that are "Dominant" and "High-potential" from those that are "Undistinguished" or "Long shots." Among its conclusions and covered in this report:
-- Drug delivery is the new IP extension strategy. Advancements in delivering hard-to-deliver new molecular entities, increasing efficacy, reducing side effects and improving patient compliance are being driven by six broad drug-delivery technologies: affinity-based targeting, controlled/sustained-release systems, passive delivery, active device delivery, passive device delivery and processing technologies. These are being used to extend therapeutic franchise value.
-- Emerging economies are building their own biopharma infrastructures. Above-global-average growth and pharmaceutical innovation is coming from BRIC (Brazil, Russia, India and China) and CIVITS (Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa) countries. A growing middle class demanding healthcare standards comparable to developed countries, growing medical tourism, and the opportunity to build their own self sustaining pharmaceutical industry are driving country specific pharmaceutical buildup and innovations in formulation and delivery.
-- The industry is ripe for the entry of non-pharma giants. Long and risky drug-development periods, and loss of investor confidence is gravely impacting entrepreneurship, potentially hampering prospects of truly innovative and, perhaps, disruptive technologies through traditional funding mechanisms. However, the situation is seeding the entry of major, non-pharma players -- especially Asian giants like Samsung, Sony, and Fujifilm -- with the potential to upset industry dynamics.
-- CROs as the new pharmas. Contract research organizations, both in the developed and BRIC nations, and especially China, are taking decades of know-how and moving upstream to create novel IP and platforms to capture more value as drug development partners, and in many instances, as standalone drug developers themselves. Especially in China, the new competitive landscape is allowing many CROs to become drug development growth engines through impressive capital raises and aggressive acquisitions.
The report, titled "Ranking Emerging Delivery Technologies: Tools for Making Old Drugs New and New Drugs Work," is part of the Lux Research Targeted Delivery Intelligence service.
About Lux Research
Lux Research provides strategic advice and on-going intelligence for emerging technologies. Leaders in business, finance and government rely on us to help them make informed strategic decisions. Through our unique research approach focused on primary research and our extensive global network, we deliver insight, connections and competitive advantage to our clients. Visit www.luxresearchinc.com for more information.
SOURCE: Lux Research
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Carole Jacques, 617-502-5314