Alcimed - BigPharma Case - Printout 1 - 2021
Alcimed - BigPharma Case - Printout 1 - 2021
Alcimed - BigPharma Case - Printout 1 - 2021
2021
1 April 2020 I
Case Study: BigPharma
Background
BigPharma has a long history in diabetes and oncology. Currently, BigPharma has 2 drugs in diabetes
and 3 products in oncology for multiple myeloma, besides some activities in other fields as well. As a
large pharmaceutical company performing research and development, BigPharma is driving a
blockbuster business model. That means having high upfront R&D expenditures with relatively high
number of development failures in order to develop few new drugs with a very high revenue.
After R&D, the cost for production are comparably low. Sales, however, is a key success factor for big
pharmaceutical companies as well.
Their global sales force is split in the ratio 3 (Diabetes) to 1 (Oncology).
BigPharma is only active in Europe. BigPharma does not expect to increase the sales force for the
launch of new products, but thinks it is possible to drive sales as estimated with the available force.
“We need to concentrate on the best candidates” says the Head of R&D. “We cannot go full scope on all
promising candidates at the same time”
In 2019, BigPharma is looking for a strategic review of their current product pipeline, to stratify and
concentrate on the most promising areas of activity. Currently, they have 4 candidates in phase II and
phase III clinical trials and want to push the most promising 2 candidates as much as possible.
2 April 2020 I
Case Study: BigPharma
Drug Candidates
Drug Candidates
Phase I Phase II Phase III New Drug
Drug Candidates
Drug Candidates
Diabetes 10 % 50 % 80 % 4%
Oncology 8% 25 % 60 % 1,2 %
3 April 2020 I
*Values derived from BigPharma experience in past developments
Case Study: BigPharma
▪ Diabetes mellitus (DM) which is commonly known as diabetes, is a group of metabolic disorders characterized by a high blood sugar level over a
prolonged period.
▪ Type 1 diabetes results from the pancreas's failure to produce enough insulin due to loss of beta cells. The loss of beta cells is caused by an
autoimmune response. The cause of this autoimmune response is unknown.
▪ Type 2 diabetes begins with insulin resistance, a condition in which cells fail to respond to insulin properly. As the disease progresses, a lack of insulin
may also develop. The most common cause is a combination of excessive body weight and insufficient exercise.
Population Diabetes
2019 Values (million | people) prevalence
EU Big 5 321.9 321 902 732 8.1 %
US 327.2 327 204 005 7.4%
China 1 386.0 1 386 034 583 8.5%
5 April 2020 I
❖ Key question: “Which drug candidate has the most
potential for BigPharma?”