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Can Drug Repositioning Work as a Systematical Business Model?
1College of Pharmaceutical Sciences, Zhejiang University, Hangzhou ZJ571, China.
ACS Medicinal Chemistry Letters
|June 20, 2020
Summary
Drug repositioning, a business model, faces challenges. A new revenue formula confirms its potential by analyzing indication, price, patient population, and market share, while also identifying unworkable strategies.
Area of Science:
- Pharmaceutical Business
- Drug Development
- Market Analysis
Background:
- Drug repositioning presents a viable business model, yet faces increasing scrutiny from academic and industry sectors.
- Systematic evaluation of drug repositioning as a business model is crucial for its continued viability.
- Understanding the economic drivers is essential for successful drug repositioning strategies.
Purpose of the Study:
- To introduce a drug revenue formula to systematically assess the feasibility of drug repositioning.
- To analyze key factors influencing the success of drug repositioning ventures.
- To identify and summarize ineffective drug repositioning strategies.
Main Methods:
- Development of a quantitative drug revenue formula.
- Decomposition of revenue potential into core components: indication, price, patient population, and market share.
- Qualitative analysis of previously employed repositioning strategies.
Main Results:
- The drug revenue formula confirms the inherent potential of the drug repositioning business model.
- Key factors such as indication specificity, pricing strategy, patient population size, and achievable market share significantly impact revenue.
- Certain previously utilized repositioning strategies were identified as unworkable and detrimental to success.
Conclusions:
- Drug repositioning remains a feasible business model when approached systematically with a clear understanding of economic drivers.
- The introduced revenue formula provides a framework for evaluating the commercial viability of drug repositioning projects.
- Strategic planning and avoidance of identified unworkable tactics are critical for maximizing the success of drug repositioning initiatives.
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