Few would argue that life sciences is not a risky industry. But a firm's risk depends in part on the stage of its offerings in traditional product life cycles. A new Ernst and Young report that assesses the nature of risk in the life sciences industry contains instructive information for ad agencies who help drug companies market their products.
According to Ernst and Young, companies with approved products face risk and opportunity in the several areas. In every case, different marketing campaigns can help the drug company manage its reputation and product sales. Here are the highest risk and opportunity areas for companies with approved products:
Revolutionizing business models: Companies may increasingly become 'fully integrated' pharmaceutical firms and control sales and distribution.
Demonstrating value amid pricing pressures: Companies must adopt a pricing structure that makes products affordable while allowing access to consumers and other payors.
Ensuring safe products: Companies must monitor and communicate how patients fare when taking drugs in the post-approval market.
By the time a company's products have moved into the globally mature phase of the life cycle, management often encounters another risk:
Possible loss of reputation: A loss of reputation can result from specific problems a firm encounters with its products or because it operates in the drug industry which may be viewed as inefficient or expensive by the public.
Why not schedule a meeting with your drug company clients to discuss which products are in the approved or mature phase of their life cycles and which marketing campaigns might work best to position the company and its products properly in the marketplace.[Source: The 2009 Ernst & Young business risk report, Life Sciences]