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Drive Growth and Profitability Through Strategic Pharmaceutical New Product Planning


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The new product planning function within bio-pharmaceutical companies is tasked with the challenging role of delivering potential new products in shorter time frames and minimum development costs.

This Best Practices, LLC benchmarking report examines the role and impact of new product planning function on product commercialization. In particular, it examines the impact of structure, resources and activities of new product planning groups on product commercialization.

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Published in: Healthcare
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Drive Growth and Profitability Through Strategic Pharmaceutical New Product Planning

  1. 1. Pharmaceutical New Product Planning Excellence: Best Practices, LLC Strategic Benchmarking Research & Analysis for CSL Behring Structure & Activities that Drive Profitability & Growth Page | 1
  2. 2. Page | 2 Table of Contents  Executive Summary pgs. 3-11  Research Overview pg. 3  Participating Companies pg. 4  Segmentation & Definition pg. 5  High-Level Recommendations pg. 6  Key Findings pgs. 7-11  The State of New Product Planning pgs. 12-16  New Product Planning Structure pgs. 17-33  Roles, Responsibilities, Interaction & Influence pgs. 34-44  New Product Planning Activities: Key Patterns And Activities pgs. 45-51  New Product Planning Activities: Marketing Planning pgs. 52-65  New Product Planning Activities: Market Research pgs. 66-81  New Product Planning Activities: Medical Affairs pgs. 82-95  New Product Planning Activities: Brand Strategy pgs. 96-103  New Product Planning Resources pgs. 104-115  New Product Planning Value And Impact pgs. 116-125  Study Participant Demographics pgs. 126-131  About Best Practices, LLC pgs. 132-133
  3. 3. Page | 3 Field Research & Insight Development: Best Practices, LLC engaged 19 biotech and pharma leaders at 15 companies through a benchmarking survey instrument. Research participants worked in functions such as marketing, and product strategy. • Identify Timing of Key New Product Planning Activities in Launch & Pre-Launch • Assess Impact of Timing Certain Activities in Launch & Pre- Launch • Highlight Areas for Success in New Product Planning Research Objectives & Methodology Research Objectives:  The objective of this benchmarking study is to help biopharma leaders determine how the structure, resources and activities of NPP groups impact product commercialization efforts.  This data will serve as a reference point for executives as they determine number of employees, budget and timing of key activities for the NPP group. Business Objective: Pharmaceutical and biotech companies are increasingly under pressure to deliver effective new products in shorter time frames while minimizing development costs. This study seeks to examine the role and impact of NPP on product commercialization.  Timing for conducting 50+ activities  FTEs allocated to global and U.S. divisions  Anticipated future of NPP function  Top 3 most valuable activities  Segmented by structure to better understand results  Structure and organization of NPP within the company  Percentage of budget allocated to specific pre-launch activities
  4. 4. Page | 4 Universe of Learning: 15 Companies Participated in the Study This research engaged 19 marketing & commercial leaders from 15 leading pharmaceutical, biotech, and life sciences companies. Benchmark Class:
  5. 5. Page | 5 Study Analyzes Two Main Segments % Respondents Benchmark Class Regional Segments NPP structure Global Regional Centralized Decentralized Hybrid N=9 N=5 N=19 N=10 N=6 N=8
  6. 6. Page | 6 High-Level Key FindingsHigh-Level Key Recommendations Add Role Clarity to Regional & Global Teams • The Commercial aspects of global and regional teams differ. Additionally, global NPP teams are decision makers for portfolio strategies while regional teams majorly play a consulting role. Adding clarity in roles will help companies to optimize NPP decisions. Start Regional Involvement as Early as the End of Phase II • Get regional teams' involvement in phase II for market planning. At the start of phase III, increase regional teams' participation in market research, medical affairs and branding activities. Global Teams Must Start Early • Global teams must get a head start on most of the activities across market research, market planning, medical affairs and branding activities. Start market planning and market research activities during phase I, while medical affairs and branding can be undertaken during phase II and phase III. Align Structure to Suit NPP Teams Responsibility • Responsibilities of NPP teams differ as per their scope. Structure regional and global NPP teams to best optimize the processes and ease decision making. Accordingly, also re-align their functional and reporting structure.
  7. 7. Page | 7 Key Findings: Few of the key findings and insights that emerged from this study:  Responsibility of NPP Team Impacts Commercial Aspect: Commercial aspect of global and regional NPP teams varies. For 56% of global teams, transition from NPP to inline marketing starts at the onset or before submission for approval during phase III. In contrast, half of regional teams’ transition happen at the end of phase III.  Branding Activities for Global & Regional Teams Start in Phase II and Phase III Respectively: More than 67% of global teams start trade packaging, generic naming and positioning in phase II, while close to 88% of global companies start brand development and trade naming in phase III. More than 75% of regional teams start all but generic naming in phase III.  Global Teams Value Segmentation; Regional Teams Value Market Research: More than 70% of global teams highly value segmentation and positioning, while 89% of regional teams value market research activities. Other activities valued by global teams are TPP (57%) and market assessment (57%) while segmentation (56%) and TPP (33%) are the activities valued by regional teams.
  8. 8. Page | 8 The central challenge is to ensure that the right new products get developed efficiently— with minimum risk and maximum value—to allow senior management to make smart decisions confidently. New Product Planning Bridging the Gap Between R&D and Commercial Interests R&D COMMERCIAL pipeline marketing clinical patent brands molecules market competition phase I me-too lifecycle commercial pre-clinical co-promotion FDA submission pharmaceutical New Product physicians medical affairs Planning disease state compounds phase II sales development research forecast biotech blockbuster therapeutic area phase III drug “…with pressure on all stakeholders in the pharma industry and the few new drugs that came to the market in recent years, NPP should take on more and more importance in driving what projects to dedicate resources to…”
  9. 9. Page | 9 Centralized, 10% Decentralized , 30%Hybrid, 60% Centralized, 44% Decentralized, 33% Hybrid, 22% 3) New Product Planning Structure: How is your company's New Product Planning function organized? NPP Function Organization Global and regional level New Product Planning groups have different structures. Forty-four percent of the global groups are centrally organized while 60% of regional New Product Planning groups have a hybrid structure. Global Groups are Centralized; Regional Groups are Hybrid % respondents N=9 N=10 Global Regional
  10. 10. Page | 10 1) When does the transition from NPP to inline (brand) marketing at your company occur? Commercial Aspect of New Product Planning Transition from New Product Planning to Inline Brands at Global & Regional Teams Begins at Different Stages % respondents Global teams are a bit ahead of regional teams in the commercialization process. While 56% of global teams transition from NPP to inline marketing occurring during start or submission at phase III, at 50% of regional teams, it starts at the end of phase III. N=9 N=10 11% 22% 22% 33% 11% 20% 10% 50% 0% 20% During Phase 2b At the beginning of Phase 3 At the end of Phase 3 Before submission to drug approval agency Other Global Regional *Others: I work in devices so that groupings above are not applicable. Launch Readiness - after submission, Entry in development, ~3 years prior to launch *
  11. 11. Page | 11 14) New Product Planning Activities –Brand Strategy: For questions 11-14, please check all phases for which your NPP group is involved in each activity.​ Timing of Brand Strategy Activities: Global More than 67% of global teams start trade packaging, generic naming and positioning during phase II, while more than 88% start brand development and trade naming in phase III. Global Groups Start 3 out of 5 Branding Activities in Phase II Medical Affairs 15% Market Research 33% N-Global=8-9 Pre-clinical Phase I Phase II Phase III Launch Development of brand Trade naming Trade packaging/formulations Generic naming Positioning 33.4-66.6% of participants performing function 1-33.3% of participants performing function 66.7-100% of participants performing function No participants performing function
  12. 12. Page | 12 Director/Global Director, 33% Head, 33% Manager, 11% Sr. Director/Assistant Director, 11% Lead, 11% 1) Please provide the following information, which will be used for classification purposes and to ensure that you receive a copy of the full study deliverable. Participant’s Job Title: More than half of the participants in the survey are at the Director level and above. High-Level Executives Participated in the Survey % respondentsN= 9 Global VP 10% Director/Global Director 40% Sr. Director/ Assistant Director 20% Head 10% Manager 20% Regional N= 10
  13. 13. Page | 13 Best Practices®, LLC is an internationally recognized thought leader in the field of best practice benchmarking®. We are a research, consulting, benchmark database, publishing and advisory firm that conducts work based on the simple yet profound principle that organizations can chart a course to superior economic performance by leveraging the best business practices, operating tactics and winning strategies of world-class companies. 6350 Quadrangle Drive, Suite 200 Chapel Hill, NC 27517 (Phone): 919-403-0251 Learn More About Our Company: