4 Strategies to Maintain Profits from “Blockbuster” Drugs by Big Pharma

When a “blockbuster” drug’s patent expires, big pharmaceutical companies face intense competition from generic drug manufacturers. To maintain profitability and market position, Big Pharma has implemented various strategies.

Key Strategies to Maintain Profits from “Blockbuster” Drugs of Big Pharma

Exploiting Legal Loopholes

Pharmaceutical companies strive to maximize their exclusive period by patenting not only the drug itself but also its manufacturing process and even its usage. A real-world example is AbbVie’s “patent cliff” strategy with Humira, a biologic drug used to treat rheumatoid arthritis and other autoimmune diseases, to navigate the patent expiration in the US in 2016.

Even last year, seven years after it was supposed to “fall off the cliff,” Humira still generated $14.4 billion in revenue despite the emergence of biosimilar drugs. However, this strategy also made AbbVie one of the most criticized and controversial big pharma companies.

AbbVie has erected a solid “patent cliff” that includes things like the drug’s manufacturing process, preventing cheaper versions of Humira from entering the US market even though the drug’s price has been reduced for years in Europe.

This strategy has been a goldmine for AbbVie. Over the past 20 years, Humira has generated over $208 billion in global revenue since its initial approval in 2002, according to the Wall Street Journal.

However, AbbVie did not “invent” these patent-extending strategies. Companies like Bristol Myers Squibb and AstraZeneca have deployed similar tactics to maximize profits with cancer drugs, anxiety treatments, and heartburn medications. Nevertheless, AbbVie’s success with Humira remains a prominent phenomenon in applying this strategy and “inspiring” many other companies.

Combining Old Drugs to Create New Formulas

To prepare for the expiration of the patent for the melanoma drug Opdivo in 2028, Bristol Myers Squibb launched Opdualag, a combination of Opdivo with the antibody relatlimab-rmbw. Merck also hopes to succeed with a similar strategy by combining Keytruda with other cancer treatments.

Investing in New Drugs

Recognizing that drug patents will eventually expire, pharmaceutical companies are proactively investing in research and development of potential new drugs. AbbVie is a successful example with Skyrizi and Rinvoq, two drugs expected to surpass Humira’s revenue. Merck also launched Winrevair, while Regeneron encourages patients to switch to higher doses of Eylea.

Acquiring Startups

Bristol Myers Squibb has acquired Karuna Therapeutics, RayzeBio, and Mirati Therapeutics to be able to exploit their products, offsetting the decline in revenue when the patents for Eliquis, Revlimid, và Opdivo hết hạn. and Opdivo expire. Merck has also made similar deals with Harpoon Therapeutics.

In summary, big pharmaceutical companies always have sophisticated strategies to maintain huge profits from blockbuster drugs even when faced with patent expiration. These strategies include exploiting legal loopholes, creating new drug formulas, investing in research and development, and acquiring promising biotechnology companies.

Source:

https://cuoituan.tuoitre.vn/big-pharma-chieu-tro-giu-loi-nhuan-thuoc-bom-tan-20240515091437842.htm