10 Strategies for Successful Life Sciences Product Commercialization
Effective product commercialization strategies in life sciences are critical for successful launches, profitability, and extensive patient impacts.
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- There are multiple strategies for successful life sciences product commercialization. These factors consider various healthcare stakeholders, including providers, patients, regulatory bodies, investors, etc.
In this article, LifeSciencesIntelligence will explore 10 essential strategies for successful product commercialization, including the following:
- Market research
- Regulatory compliance
- Intellectual property (IP) protection
- Key Opinion leader engagement
- Pricing
- Marketing and promotion
- Sales and distribution
- Post-market surveillance
- Continued innovation
- Collaboration and partnerships
These factors can play a critical role in successfully commercializing life sciences products.
In an article by Plexus, Bill Fitzgerald, Director of Life Sciences at Plexus, noted, “There are countless decisions to make about any highly complex device produced in low to medium volumes. These trade-offs can impact the product’s cost, its level of reliability, the user experience, and much more.”
To successfully commercialize a new product, life sciences companies need to address all parts of the product development and marketing life cycle.
Market research
Market research is critical in the life sciences industry and effective product launches. In a way, market research is the foundation of all product developments and launches. Successful commercialization effectively meets the needs of a specific population.
Conducting market research in the life sciences industry involves gathering and analyzing data to gain insights into the market dynamics, customer needs, competition, and potential opportunities.
Market research is a multi-step process that requires assessing multiple factors. To start, companies must determine their research goal. What factors are they trying to learn about during the market research process that will improve product launch? For example, some goals may include assessing the market size, the growth rate of the target market, key customer segments, the competitive landscape, or market readiness.
One of the most critical parts of market research and determining research goals is identifying the target market, including demographics, geographic locations, most utilized healthcare settings, and specific patient populations. If a therapy, biotechnology, or other intervention is meant to be administered by a licensed healthcare professional, market research should also assess those individuals when identifying the target market.
For example, companies may consider how different stakeholders define clinically meaningful data when developing a commercialization strategy.
The next part of market research requires determining the research methods, the instruments used, and which metrics can help leaders analyze their target audience.
After interpreting and validating the findings, biopharma or biotech companies can apply the insights to take actionable steps. Companies must also continue to monitor and update their market research as dynamics change.
Regulatory Compliance
Regulatory compliance is critical to product commercialization in the life sciences industry. It involves adhering to the laws, regulations, guidelines, and standards set forth by regulatory authorities to ensure product safety, quality, and efficacy.
The complexity of the domestic and global regulatory environments makes this one of the most complex components of product commercialization.
In the United States, the Food and Drug Administration (FDA) is the primary regulatory body that pharmauniceutical companies and life sciences organizations answer to when launching new drugs or technologies. The FDA assesses new technologies, medical devices, and healthcare tools.
The company launching the product must familiarize itself with FDA regulations and protocols. They should consider product classification, what preclinical studies or clinical trials support regulatory approval, and whether their quality management systems align with current good manufacturing practices for the pharma and life sciences industry.
Companies must ensure that they compile a complete and influential regulatory submission, highlighting data or case studies that support approval and proposing a plan for post-market surveillance.
Beyond product approval, commercialization requires a comprehensive understanding and adherence to guidelines for labeling and advertising. Life sciences marketing strategies, including messaging, digital marketing, social media initiatives, and more, are subject to regulatory approval.
Intellectual Property Protection (IPP)
Protecting IP is crucial for maintaining a competitive advantage. When working with a new concept, product, or theory, companies should consider IPP. In some cases, that means getting a patent, trademark, or copyright on a specific product or aspect of a product.
Additionally, when commercializing a product through partnerships and collaborations, companies must consider how to protect trade secrets, what licensing or technology transfer agreements are necessary, international IP protection, and confidentiality agreements.
They should also conduct regular IP audits to monitor and enforce IP rights, minimizing the risk of infringement and protecting their market position.
Key Opinion Leader (KOL) Engagement
KOLs are influential individuals who have credibility and expertise in a particular industry. Throughout the commercialization process, these leaders may have insight into effective strategies or current trends in a specific sector.
Engaging with them early on can provide valuable insights, support clinical studies, and help generate awareness and adoption of a product.
Pricing
Pricing biopharma products can be a massive undertaking for both start-ups and established companies. Organizations must weigh profitability with product accessibility.
The cost of bringing a drug or healthcare product to market can be extremely high, with a large budget allocated to research and development. However, high-cost products with lower-cost alternatives are unlikely to have a high return on investment.
Evaluating how a product’s price compares to other products on the market can provide a starting place for companies determining pricing. For example, they may consider market dynamics such as competition, inflation, the level of need, the target patient population, and more.
Beyond production costs and market dynamics, companies should also consider reimbursement policies and federal drug pricing regulations.
Marketing and Promotion
Develop a comprehensive marketing plan that includes digital marketing, content creation, social media engagement, and targeted advertising. Leveraging online platforms, industry conferences, trade shows, and educational initiatives to raise awareness about a product may be an effective marketing and advertising strategy.
However, companies must be well acquainted with the regulatory guidelines on advertising. The FDA’s website lists three different kinds of advertisements: product claims, reminders, and help-seeking ads. Each type of ad serves a different purpose and has a separate set of guidelines.
Sales and Distribution
Establishing an efficient sales and distribution network is crucial for product availability and market penetration. How can companies sell and distribute their product in a way that reaches the target audience? How might sales and distribution impact supply chain management? These are all factors that companies must consider throughout the commercialization process.
Whether they opt to sell and distribute with distributors, wholesalers, or specialty pharmacies, understanding the patterns of their customer segment is critical.
Post-Market Surveillance
Post-market surveillance is a vital component of every FDA-approved healthcare product. During the regulatory submission process, most companies must include a detailed plan for post-market surveillance, which will evaluate a particular product's performance, safety, and efficacy.
Although the FDA has MedWatch and the Medical Product Safety Network to monitor any adverse events associated with a particular product, companies are strongly urged to conduct their own post-market surveillance.
These assessments can aid commercialization strategies by identifying product flaws or concerns the scientific team can address. Additionally, understanding customer satisfaction can help companies focus on continued innovation.
Continued Innovation
The life sciences industry is dynamic, with evolving technologies, scientific discoveries, and market needs. Companies must invest in continued research and development to remain relevant and successfully commercialize a product.
These investments ensure that they are keeping up with the competitive landscape. Research and development efforts may vary based on the product or target audience; however, they may generally include analyzing market trends, competition, emerging technologies, new indications, or adjacent markets.
Collaboration and Partnerships
Collaborating with other companies, research institutions, or healthcare organizations can provide access to complementary expertise, resources, or customer networks. Throughout the commercialization process, life sciences and biotech companies should develop strategic partnerships to help carve out their space in the market.
In an Ernst and Young article, experts note that strategic partnerships provide a way to offset the risks associated with market entry, product launch, and commercialization.
Life sciences product commercialization is an ever-changing process that requires extensive research and insights into the overall market. However, companies may engage with these commercialization strategies to better equip themselves during the process.
