Drivers of peak sales for pharmaceutical brands

Fischer, Markus; Leeflang, Peter S. H.; Verhoef, Peter C.

doi:10.1007/s11129-010-9089-5

Cited by 30 publications

(20 citation statements)

References 63 publications

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“…Since stocks are the ultimate result of the accumulation of the relevant flows, we calculate IT stock by accumulating the IT spending. To do this, we apply the perpetual inventory method that has been used in many economics and marketing studies (e.g., , Fischer et al 2010). Thus we define the cumulative IT spending (i.e., IT stock), S t , at year t as…”

Section: Variable Measures and Data Sourcesmentioning

confidence: 99%

Research Note—Do Large Firms Become Smaller by Using Information Technology?

Grover

Teng³

2013

Information Systems Research

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T he relationship between information technology (IT) and a key organizational design variable, firm size, is an important area of study, particularly given the ongoing transition to an information-based economy. To better understand the more nuanced aspects of the relationship, we formulated a bidirectional and time-lagged model that incorporates different perspectives from organizational theories and transaction cost economics. Our two models-the bidirectional and one-year lagged model and the bidirectional and two-year lagged model-were tested using nine-year panel data on IT spending, IT stock, coordination costs, firm size, and relevant control variables for 277 manufacturing firms. We found a sequential interaction between IT and firm size in both of the two models: as a firm grows in size, its coordination activities increase; the firm then uses more IT to handle the increased activities of coordination; this increased use of IT, in turn, decreases coordination costs, and eventually, the size of the firm decreases. It was also found that the presence of coordination costs is necessary for the sequential interaction between IT and firm size, indicating coordination between and within firms is a major reason for firms to invest in IT and for IT effect to take place on firm size. This study has taken an initial step by attempting to empirically examine dual causality and longitudinal effects between IT and firm size, and to reconcile different theoretical perspectives on the relationship between them. We hope this work can act as a catalyst for developing a better understanding of the complex relationship between IT and organizations, with the ultimate goal of offering robust prescriptions for successful structural change.

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Section: Variable Measures and Data Sourcesmentioning

confidence: 99%

Research Note—Do Large Firms Become Smaller by Using Information Technology?

Grover

Teng³

2013

Information Systems Research

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“…Given that early entrants often achieve a dominant market position and their marketing instruments are more effective compared to those of later entrants (Bowman & Gatignon, 1996), they may exert a strong influence on the formation of disease category preferences (Carpenter & Nakamoto, 1989). Yet, Shankar et al (1998) and Fischer, Leeflang and Verhoef (2008) posit that it is possible for late entrants who innovatively improve the product of the pioneer to outsell the pioneer and reduce the relative promotional effectiveness of that pioneer. Consequently, Fig.…”

Section: Product Characteristicsmentioning

confidence: 99%

Generalizations on the effectiveness of pharmaceutical promotional expenditures

Kremer

Bijmolt

Leeflang

et al. 2008

International Journal of Research in Marketing

112

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“…Revenue is based on a logarithmic revenue growth curve through 10 years to peak, with peak sales assumed at $1B. 49,50 Patent expiration with entry of generic competition Circles represent uncertain events; values adjacent to each path from the circles indicate the probability that the project will follow that path. Values on the right indicate the probability that the project will terminate following that path and the NPV for that path (eg, probability of technical and regulatory success ¼ 22%).…”

Section: Base Case Assumptionsmentioning

confidence: 99%

Assessing the Financial Value of Patient Engagement: A Quantitative Approach from CTTI’s Patient Groups and Clinical Trials Project

Levitan

Getz²,

Eisenstein

et al. 2018

Ther Innov Regul Sci

122

104

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Background:While patient groups, regulators, and sponsors are increasingly considering engaging with patients in the design and conduct of clinical development programs, sponsors are often reluctant to go beyond pilot programs because of uncertainty in the return on investment. We developed an approach to estimate the financial value of patient engagement.Methods:Expected net present value (ENPV) is a common technique that integrates the key business drivers of cost, time, revenue, and risk into a summary metric for project strategy and portfolio decisions. We assessed the impact of patient engagement on ENPV for a typical oncology development program entering phase 2 or phase 3.Results:For a pre–phase 2 project, the cumulative impact of a patient engagement activity that avoids one protocol amendment and improves enrollment, adherence, and retention is an increase in net present value (NPV) of $62MM ($65MM for pre–phase 3) and an increase in ENPV of $35MM ($75MM for pre–phase 3). Compared with an investment of $100,000 in patient engagement, the NPV and ENPV increases can exceed 500-fold the investment. This ENPV increase is the equivalent of accelerating a pre–phase 2 product launch by 2½ years (1½ years for pre–phase 3).Conclusions:Risk-adjusted financial models can assess the impact of patient engagement. A combination of empirical data and subjective parameter estimates shows that engagement activities with the potential to avoid protocol amendments and/or improve enrollment, adherence, and retention may add considerable financial value. This approach can help sponsors assess patient engagement investment decisions.

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Drivers of peak sales for pharmaceutical brands

Abstract: Peak-sales metrics, Brand growth, Econometric models, Market entry, Pharmaceutical marketing, C23, C51, L65, M31,

Cited by 30 publications

References 63 publications

Research Note—Do Large Firms Become Smaller by Using Information Technology?

Research Note—Do Large Firms Become Smaller by Using Information Technology?

Generalizations on the effectiveness of pharmaceutical promotional expenditures

Assessing the Financial Value of Patient Engagement: A Quantitative Approach from CTTI’s Patient Groups and Clinical Trials Project

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