Pharmacy


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Specialty pharmaceutical companies focus on different stages and aspects of drug development and marketing as well as aid large pharmaceutical companies in the life cycle management of their products. The areas of expertise for these companies include drug delivery, clinical development, generic drugs, as well as sales and marketing. Specialty pharmaceutical companies focus on one or two of these areas, leveraging their expertise and positioning themselves in a niche pharmaceutical market.

 
The business model of specialty pharmaceutical companies can be classified into four types – acquire low sales generating inline branded products and market them; in-license and develop market for products; develop drug delivery and disease management technologies for existing and new products; and develop & market generic pharmaceuticals.
 
Most specialty pharmaceutical companies adopt a mix of these business model in a specific field or a range of related therapeutic areas. They refrain from adopting the ’blockbuster’ pharma business model of developing drugs that generate revenues of over billion dollar a year and have portfolios that consist of a range of products that have revenues of a few hundred million dollars a year. This strategy enables them to focus on specific areas with limited research and development (R&D) investment, which is not an area of strategic priority.
 
Core R&D, which begins from screening and pre-clinical trials, is an expensive and challenging area and is typically carried out by universities, several start-up as well as large pharmaceutical and biotechnology companies, which are a partner of choice for these specialty pharmaceutical companies.
 
By limiting the therapeutic area of focus, specialty pharmaceutical companies are also able to develop specialized sales and marketing forces as well as minimize expenditure. Specialty pharmaceutical companies also focus on generics to a large extent, as this is a lucrative low-margin, high-volume business that suits the companies’ broad-level strategy and complements their therapeutic areas of focus. With several blockbuster drugs continuing to lose patent protection, specialty pharmaceutical companies are poised to consolidate their position and expand their generic portfolio.