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Wednesday, July 16, 2008

Life is Good at JNJ (if you're not an atypical antipsychotic): A reaction to Johnson & Johnson Earnings Call

JNJ had a nice quarter, in spite of losing Risperdal to genericsville and Invega sitting firmly on its flat launch curve. In truth, the big generic hit will start this quarter as the generics start shipping. Last quarter for Risperdal was a decline simply because the wholesellers quit building inventory. Invega is another story. Well, it just sucks. According to Dominic Caruso, Vice-President, Finance and Chief Financial Officer, "Invega is continuing to improve quarter after quarter but I would say consistent with our prior comments it’s not where we had expected it to be. It’s not the launch we had hoped for as we had commented before but we do see steady improvement with Invega. We believe it’s a viable alternative for patients and when used physicians comment very favorably about the effect with patients." It's not hard to improve quarter after quarter when a) the market is expanding and b) you're starting with such a small base.

Thursday, July 10, 2008

Oh the Horror! PhRMA Bans Physician Gifts

Oh what a sorrowful day it is as I mourn the loss of the ubiquitous pharmaceutical sales rep tchotchke. Today, PhRMA announced a voluntary ban on the pens, pads, clocks, clipboards, shirts and anything else you can brand that reps have been dangling to docs for years as added incentive to prescribe their product. And, let me tell you, they did it because it worked. So, if you're a rep, your bag just got a little lighter, but your job just got a lot harder. If you don't have new clinical information for a physician then why in the world would he/she meet with you now - just drop those samples off at the front and move on to the next office. Today marks another nail in the death of the sales rep model.

Wednesday, July 2, 2008

Astrazeneca Saves Seroquel

Astrazeneca got incredibly great news today from a NJ court that Novartis and Teva will not be able to pursue their desired genericization of Seroquel. This stands in stark contrast to yesterday's post on Risperdal which just went generic. This is good news for all the branded atypicals as now there is just risperidone as the sole generic. Had Seroquel gone generic it would've turned the atypical market upside down. Seroquel and Seroquel XR as branded products make up over a 30% share of all atypical antipsychotics as it is and with juggernaut new indications coming in Major Depressive Disorder and Generalized Anxiety Disorder, it's not going to get any smaller anytime soon. Had it gone generic, it's likely that Abilify and Geodon would have been particularly hard hit so I'm sure their respective marketing teams are exhaling a sigh of relief.

Tuesday, July 1, 2008

First Generic Atypical Antipsychotic (Risperdal becomes risperidone)

Yesterday Teva announced they received FDA approval to produce a generic version of Risperdal. We all knew this was coming. Teva was ready with product to ship and JNJ was ready with their own in-house generic version in hopes of cannibalizing some Teva sales at the expense of their former cash cow.

What does this mean for the common man?

Well if you're schizophrenic, bipolar, autistic, or an off-label user, it means that the price you pay just got a whole lot cheaper AND after Teva's 180 days of exclusivity as the sole competitor allowed to sell risperidone, the price will drop even lower as more competition enters the market.

If you're a sale rep. for Invega (the bastard child of Risperdal), your sales goals just got a wee bit more difficult now didn't they because who wants to buy Risperdal-lite when you can get the original for pennies on the dollar. Wonder what that already stellar *saracasm* Invega uptake curve is gonna look like now.

And what if you're Abilify, Geodon, Seroquel or Zyprexa? Well, you hope and pray that your marketing and sales folks have done a good job differentiating their product from the competition because the price differential between you and the generic just went exponential.

And what of the insurers you may ask. Can you say fail first? I'm sure it's already begun.

Ooh, exciting times in the Atypical Antipsychotic Market!