Ensuring Big Pharma Doesn’t Turn Specialty Markets Into Primary Care

Lured by the success of Abbott in rheumatology, Novartis in oncology, and Genzyme in orphan/genetic diseases, pharmaceutical manufacturers have turned their collective sights on specialist-driven markets. But payor pressure is ballooning and as examples in these hotly competitive areas demonstrate, to truly succeed in specialist markets, companies cannot rely on a ‘follower’ strategy. Instead, careful selection of indications where true innovation is possible and fostering meaningful interaction with physicians and patient communities will allow pharmaceutical companies to grow specialty franchises alongside traditional strengths.

It is hard to dispute the success Abbott Laboratories Inc. has had selling its TNF-alpha inhibitor Humira (adalimumab) for rheumatoid arthritis. With sales exceeding $5 billion globally, it now accounts for nearly one third of Abbott’s pharmaceutical revenues, and is on track to become the best-selling drug in the world. Given that there are only approximately 5,000 rheumatologists in the US, it is no wonder that other players see these specialists and patients with rheumatoid arthritis as a critical growth market.

What would-be entrants forget, however, is that unlike Humira, which benefited from the experience base built with Amgen Inc.’s...

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