NEW PRODUCT DEVELOPMENT.1.Humira, Abbot world best selling drug.(mega blockbuster drug)Arthritis is a disease of the joints. Osteoarthritis, which is generally the result of "wear and tear", is a condition in which inflammation of the joints results in pain and degeneration. Rheumatoid arthritis is an autoimmune disease in which the immune system attacks the joints. According to the CDC, over 46 million Americans suffer from arthritic symptoms, and 19 million are physically limited by their condition. The pharmaceutical market for arthritis generated $15.9 billion in revenues in 2008.COMPETITIOR ANALYSISThe major players in the arthritis drug market include Abbott Laboratories, Johnson & Johnson, Amgen, Roche, and Pfizer. As of 2008, Abbott Laboratories' Humira, which was approved by the FDA in 2003, is the highest selling drug in the arthritis market, with sales growing 50% from 2007 to 2008 to $4.5 billion.[4] Bristol-Myers Squibb's Orencia, which was approved by the FDA in 2005, is the fastest growing arthritis drug, with sales increase of 91% from 2007 to $441 million in 2008.[5]Arthritis Drugs Market Share by Revenue, 2008

RankMarket ShareCompanyProductRevenue ($ billion)Growth

128% Abbott Humira 4.50 50%

223% Johnson & JohnsonRemicade3.70 18%

323% Amgen Enbrel 3.60 12.5%

416% Pfizer Celebrex2.49 9%

55%Roche Rituxan0.75 NA

63%BMS Orencia0.44 91%

72%Merck Arcoxia 0.38 14.6%

NEED FOR NEW PRODUCT DEVELOPMENTOn a dollar basis, the arthritis drug market is dominated by biologic drugs, specifically proteins which block tumor necrosis factor (TNF). Biologic drugs are much harder to replicate than small molecule drugs, and current legislation makes it very difficult for competitors to produce generic versions of the drug. However, proposed new legislation may pave a pathway for generic biologics, which if approved will affect the arthritis market by enabling the entry of generic competition which will lower prices and decrease the overall market size.Branded arthritis treatments are also threatened by over-the-counter treatments that offer lower prices and higher accessibility. In addition, there have been concerns that anti-TNF antibodies can lead to cancer in children and adolescents.New drugs under development with novel mechanisms of action have the opportunity to achieve blockbuster sales in this market.Humira is not only the best-selling arthritis drug; it is also the best-selling drug in the world right now. And it is the backbone of Abbot ($ABBV), the newest member of Big Pharma, which was spun off from Abbott Laboratories ($ABT) January 1PRODUCT LIFE CYCLE OF HUMIRA.The drug is approved for a long list of indications in the U.S. and Europe and had 2012 global sales of $9.6 billion, with about half of that in rheumatoid arthritis. In the second quarter of the year, Humira sales were up 12% to $2.6 billion, indicating the company continues to gain ground with the treatment. AbbVie has other drugs in its pipeline, but Humira makes up about half its revenues. And the drugmaker needs to milk that as much as it can, while it can, because Humira's patent expires in 2016 and it has a target on its back. Because it is the world's best-selling drug, there are plenty of companies focusing on it as part of theirbiosimilarplans.Currently the drug is in its maturity stage.

Comercialization of humiraHumira is sold in the market as the prescription drug.Extensive strategies are being adopted to promote the drug to the medical practitioners in order to arrive to achieve the break even point rapidly and increase the economies of scale. New product (humira) pricing.It is most costly product that has been sold in the market at the exhorbitant price in order to recover the research and development expenses it has the patent expiration in 2016 and it had proven the best revenue generating drug for abbot .one tablet of the humira cost around 50,000INR($ 1000) half of the revenue for the abbot comes from the humira.PRICING STRATEGIESInnovative pricing by novartis for antimalarials.Price is just one of many factors affecting access to healthcare. We know that novel pricing models and generic medicines can help expand access, and both are part of our access programs.Differential pricing for sustainable accessDifferential pricing can help make medicines accessible a treatment that is sold at full price in developed markets can be provided at a subsidized price in the poorest countries.As part of ourMalaria Initiative, Novartis provides its antimalarial medicine at not-for-profit prices for public sector use. Since 2004, thanks to economies of scale in sourcing and manufacturing, significant cost reductions were achieved, which allowed the price to be reduced by half for public-sector buyers over the years.Novartis is a company of firsts: the first company to distribute its antimalarials without profit to endemic countries and the first vaccine manufacturer to create a not-for-profit vaccines research institute the Novartis Vaccines Institute for Global Health.Patents and licensing in least developed countriesNovartis does not enforce patents in least developed countries (LDCs). The United Nations designates these countries as highly disadvantaged in their development process, for structural, historical and geographical reasons. LDCs are also characterized by their vulnerability to external economic shocks, natural and man-made disasters and communicable diseases.Novartis will grant non-exclusive licenses to qualified third parties to supply our patented products exclusively to LDCs.High-quality generic medicinesGeneric medicines can expand access by offering affordable treatments with the same safety and efficacy after a patent expires.Novartis is the only major healthcare company with leadership positions in both patented and generic pharmaceuticals. OurSandoz Divisionis the second-largest producer of generics, and the price points of numerous Sandoz medicines are accessible to 90% of the worlds population.Sandoz and its affiliate 1A Pharma often compete in tenders, where the lowest price product with the best delivery conditions usually wins the contract. Sandoz and 1A Pharma have successfully tendered bids in numerous African countries.Sandoz is the leader inbiosimilars, which helps improve access to biopharmaceuticals after patent expiry.

DISTRIBUTION OF PHARMACEUTICALS.Exclusive distribution of swine flu drug by Hetero healthcareSwine flu: Hetero Healthcare increases Fluvir production by 400%

HYDERABAD: City-basedHetero Healthcare Limited, the first pharma company in India to launch anti-H1N1 drug Oseltamivir in retail market, today said it has increased its Fluvir production by 400 per cent to address the presentswine fluoutbreak across the country.Considering the gravity of the present swine flu situation where more than 930 deaths have already been recorded, Hetero is taking all necessary steps to meet the demand of Fluvir across the country on a priority basis, Hetero said in a press release.Hetero is the only Indian pharmaceutical company to have the licensingrightsfrom Hoffmann-La Roche Ltd to manufacture and supply Oseltamivir in India as well as in other 100 underdeveloped and developing countries.

Fluvir is the first Oseltamivir drug launched in Indian retail market and available to only exclusive medical by the government of india for swine flu drugs due to its shortage.Hetero has dedicated manufacturing facilities at Visakhapatnam inAndhra Pradeshand Baddi inHimachal Pradeshexclusively to produce the drug. It is fully prepared with adequate raw materials and manufacturing capacities to meet the demand of Fluvir to treat millions of swine flu patients, the company said.Hetero's Marketing DirectorSrinivas Reddysaid the production of Fluvir has been increased significantly to meet the challenge of the availability of swine flu drugs across India."We are also very happy to launch the swine flu helpline number to help the people across India. The helpline along with our other measures would definitely play a very important role in addressing the present swine flu situation in India. With our manufacturing facilities for Fluvir, we will be able to deliver sufficient number of doses to treat more than 20 million people in an emergency situation

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