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As Billions in Blockbuster Drug Revenue Goes Off Patent, Life Sciences Companies are Challenged to Fundamentally Change Future R&D Strategies, According to New Deloitte Report
Date:4/2/2008

NEW YORK, April 2, 2008 /PRNewswire-USNewswire/ -- Pharmaceutical companies currently challenged with replacing the $65 billion worth of product expected to go off patent in the next four years must dramatically rethink their R&D models for future success, according to a new report released by Deloitte today.

According to the report titled The Changing Face of R&D in the Future Pharmaceutical Landscape (http://www.deloitte.com/us/FuturePharma), current R&D programs focused on developing a small portfolio of high revenue blockbusters will evolve to R&D programs focused on high efficacy treatments developed for smaller patient populations based on specific genotypes. Such treatments, and their higher demonstrated efficacy, may ultimately have the potential for higher per treatment revenues.

This fundamental disruption of today's pharmaceutical industry will create both opportunities and threats for current industry players, and will stimulate the emergence of new industry entrants configured specifically to succeed in the changed pharmaceutical landscape.

"Continuing yesterday's R&D focus on developing blockbusters will not secure success in the future," according to Terri Cooper, Ph.D., a principal in the Life Sciences practice of Deloitte Consulting LLP. "Pharmaceutical companies cannot rest on their laurels. They need to be looking outside of their four walls to develop partnerships and collaborations with a network of companies, scientists and organizations to fuel R&D developments and reduce time to bring new drugs to market."

The R&D model of the future will incorporate:

-- R&D strategies which support the assembly of treatment portfolios for the entire disease life cycle and the various genotype specific patient segments in the life cycle, rather than the traditional one-off "blockbuster"

-- Focused R&D programs based on genotyped patie
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SOURCE Deloitte
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