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Lundbeck: Pipeline, Products, Performance and Potential
Espicom Business Intelligence Ltd, Pages: 72
Lundbeck is a research-based pharmaceutical company which, since 1989, has concentrated on a single core therapeutic area, namely the development and sale of pharmaceuticals for the treatment of diseases of the central nervous system (CNS). To date, the company has largely focused on drugs for psychiatry and neurology, however it has broader ambitions, namely to become one of the world’s leading specialist suppliers of drugs to treat CNS diseases. Lundbeck sees these areas as complementary to each other and, using its core competencies within brain research, it believes it can achieve substantial synergy in both R&D and sales and marketing.
Lundbeck firmly believes that its focused niche strategy has been and will continue to be the key to the company’s success. For Lundbeck's sales organisation, it means that Lundbeck's medical representatives can communicate with specialist and general practitioners with a higher level of technical knowledge than would be the case with multiple therapeutic areas. Lundbeck will actively seek new partnership agreements in order to compensate for its limited size and financial resources. They also allow Lundbeck to tap into competencies and know-how which may be necessary for successful research and commercialisation. Partnerships in R&D allow Lundbeck to maintain a larger portfolio than it would otherwise be able to do so, increasing its chance of success, despite competition from much larger companies.
Although Lundbeck has a presence in 54 countries worldwide, it has yet to establish sales subsidiaries in the two biggest markets, the US and Japan, which combined account for approximately two-thirds of the global CNS market. Lundbeck has moved into these markets by establishing alliances with collaborating partners. This provides the company with a higher return than traditional out-licensing models, while sharing the level of commercial and scientific risk.
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