Project Experience

How Do You Compete with Unique Distribution Strategies?

Client Situation
Sales of prostate cancer drugs in the U.S. are estimated to exceed one billion dollars. Hormone treatments like LHRH are sold directly to urologists by key players in this market (without benefit of distributors). While awaiting approval for its own LHRH offering, our client realized it needed a better understanding of distribution/financial arrangements and product developments of its competitors in the LHRH market in order to develop an aggressive launch and distribution plan.

Fuld Approach
Fuld & Company contacted numerous industry sources such as wholesalers, retailers, urology distributors, as well as the manufacturers and marketers. Key intelligence topics included an understanding of pricing structures, reimbursement, product promotion and distribution, the impact of generics, corporate commitment to the LHRH/hormone therapy market, manufacturing issues and how they impact production costs and margins, and market perceptions - that is, how competitors would view a new entry.

Benefits and Implications
Receiving its own product approval in the first quarter of 2000, our client was able to position, price, and push its product advantageously upon launch. Its detail group was prepared with how customers preferred to be sold in this unique area and the advantages offered to urologists in this unique product category. For more information about distribution issues in the healthcare industry, contact either Anthony Nagle at tnagle@fuld.com or Cynthia Gerber Tomlinson at cgtomlinson@fuld.com.