Drive Pharmaceutical Sales Through Strategic Alliances
CHAPEL HILL, N.C.--(BUSINESS WIRE)--Feb. 3, 1999--
New Study by Best Practices, LLC Examines the
Most Powerful Co-Promotion Partnerships
After just over a year on the market, anti-cholesterol drug Lipitor rang up $1 billion in worldwide sales despite being the fifth drug in its class, making it the most successful product launch in history.
Manufacturer Parke-Davis did not accomplish the feat alone, however. The blockbuster was co-promoted through a progressive strategic alliance with rival company Pfizer.
Thanks to the success of co-promotions like Lipitor, leading pharmaceutical companies are now keenly aware that the right strategic alliance can have a powerful impact. But identifying a partner is only the first step in the development of a successful strategic alliance. How can a company overcome the myriad of challenges associated with co-promotion partnerships -- managing sales, marketing, and launch activities, not to mention the relationships? A recent study by Best Practices, LLC, a leader in the field of benchmarking and consulting, shares the winning strategies and practices that distinguish 26 successful strategic alliances, including partnerships struck by companies such as Glaxo Wellcome, Pfizer, and Bristol-Myers Squibb.
"High-performing co-promotion partners describe a chain of success," said Keith Symmers, vice president of Best Practices, LLC. "They create and structure the original deal with an eye toward implementation success. Then they plan and execute activities that foster sharing and partnership at each stage of the promotional effort. These elements create an environment of knowledge sharing, which translates into a wider reach and increased sales."
Through extensive interviews with pharmaceutical executives, Best Practices, LLC identified the top five key drivers of strategic alliance success:
-- In structuring the deal, seek partners whose culture, strategy
and needs fit your own.
-- Involve senior management in communicating the strategic
importance of the partnership.
-- During preparation for product launch, create a dedicated
operational team from each organization to oversee and manage
the co-promotion process.
-- Co-brand products to instill a sense of ownership in sales
representatives.
-- Mirror territories to facilitate partner communication and
coordination.
The Best Practices in Pharmaceutical Alliances & Co-Promotions Report describes lessons learned, best practices, and winning strategies identified in executive interviews. Findings are arranged according to five critical areas: product launch, marketing management, sales management, relationship management, and deal making.
One interviewed executive said, "The nature of strategic partnerships is changing. They are now performed out of strength -- not out of weakness." The strategic alliance for Lipitor, built after a four-month courtship, was a marriage made in heaven: Pfizer provided the sales and marketing muscle to make Lipitor a true blockbuster, while Parke-Davis gave Pfizer a powerful drug in the huge anti-cholesterol market.
The Best Practices in Pharmaceutical Alliances & Co-Promotions Report provides a road map for helping pharma companies get the most out of this increasingly important element of sales and marketing strategy.
To obtain more information about the report, or if you are interested in other pharmaceutical research, contact Keith Symmers at 919.403.0251 or ksymmers@best-in-class.com.
About Best Practices, LLC
Located in Chapel Hill, NC, Best Practices, LLC provides clients with access and intelligence for achieving world-class excellence. The firm's work is based on the simple yet profound principle that organizations can chart a course to superior economic performance by studying the best business practices, operating tactics, and winning strategies of excellent companies. Serving diverse economic sectors worldwide, Best Practices' industry specializations include pharmaceuticals, financial services, telecommunications & media, and utilities. For more information on Best Practices, LLC, contact Keith Symmers or visit the website at best-in-class.com.
CONTACT:
Best Practices, LLC, Chapel Hill
Adam Gusman, 919/403-0251
Fax: 919/403-0144 |
