The Successful Launch and Diffusion of New Therapies

Abstract

The successful launch and diffusion of new drugs is an essential factor of survival for many pharmaceutical firms. Sophisticated managers in this industry are in need for decision support tools that they can implement to increase the success of a new and approved pharmaceutical drug. In this chapter we present a review of such strategic and analytical tools. The review is based on significant contributions by marketing scientists, and is organized according to the components of a launch and diffusion decision chain we define. This chain represents the sequence of decisions managers must make with regard to the launch and diffusion of new drugs. The first element of the chain includes decisions regarding the specific methods by which pharmaceutical firms can gauge the commercial potential of a new treatment over time. Second, as pricing and promotion are prime instruments for pharmaceutical firms to extract maximum value, we review the means by which a manager can decide to extract the new treatment's commercial potential and generate value for

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