Drug portfolio management teams devote more time, money to niche brands, study finds

RESEARCH TRIANGLE PARK, N.C. — Drug companies' pharmaceutical portfolio management teams spend most of their time and budgets supporting niche products, according to a new study.

The study, "Pharmaceutical Portfolio Management: Selecting Targets, Filling Pipelines and Preparing for Post-Launch Success," by Cutting Edge Information, found that portfolio management teams spend 53% of their time supporting niche products, meaning those with less than $500 million in annual sales. They also spend an average of 59% of their budgets on niche drug compounds, compared with 18% on potential blockbusters.

"The focus on niche drugs makes sense, as drugs with the potential to become blockbusters lose that opportunity as they progress through the development cycle," Cutting Edge Information CEO Jason Richardson said. "As more blockbusters go generic, niche compounds treating conditions with lower rates of incidence become more attractive targets for pharmaceutical companies."