New report reveals pharma spend on market research

According to a new report from Cutting Edge Information, pharmaceutical companies spend the majority of their commercialisation budget on market research during the early phases of development.

Data from the report, 'Pharmaceutical Product Commercialization: Pre-Clinical to Phase III Resource Allocation,' shows that 'pre-clinical through Phase III, blockbuster brand teams allotted 38.5% of their total commercialisation budget to market research'. 'Mid-level' and 'niche' brands were found to spend even more, hitting around 42.1% and 53% of their budgets respectively.

'All companies pour dollars into market research; however, smaller brands dish out higher percentages to offset a lack of resources as compared to blockbuster brands,' according to Cutting Edge. 'Pre-clinical through Phase III is a period of time during which brand teams begin to identify unmet needs and spot potential problem areas that could inhibit a drug's commercial development in the years ahead, although companies report that it is nearly impossible, particularly in pre-clinical and Phase I, to recognise and address key commercial challenges without targeted resources. Market research is one of the best tools brand teams have to tackle these challenges.'

The full report includes over 350 metrics, 145 charts and graphics, along with analysis of 16 brands' commercial spending and staffing levels from pre-clinical to Phase III development. It also details resource allocation processes, marketing team stru-tures and portfolio decision-making processes from companies including Eli Lilly, Novartis, Sanofi-Aventis and Bristol-Myers Squibb.