MANAGING LOSS OF EXCLUSIVITY

The pharmaceutical patent cliff continues from 2012 into 2016 with a speculated total reduction in global branded revenues of $127 billion [1]. Termed “Loss of Exclusivity” (LOE), manufacturers face steep declines in sales as generic products enter the market (Figure A).

Additionally, if the inevitable drop in demand is not properly planned and closely managed, the impact to an organization may be felt long after the expiration of the product in the form of poor service levels, excess channel inventory (days on hand), and high returns rates (Figure B).

LOE-SalesasPercent-2

(Figure 2)

(Figure A)

(Figure B)

LOE-SalesasPercent-2

(Figure A)

(Figure 2)

(Figure B)

ValueCentric provides consulting expertise for dozens of pharmaceutical manufacturers experiencing Loss of Exclusivity events. ValueCentric can help you optimize the management of your product sales & inventory forecasts, and returns reserves as your Loss of Exclusivity approaches.


[1] http://www.drugs.com/article/patent-expirations.html