Support : Publications : Chronolog Archives : September 2001

IMSworld Files on Dialog^® and DataStar^™

Files provided by IMSworld Health can provide executive insight to the pharmaceutical industry.

In this article we explore how the IMSworld files can help with:

• Competitor Intelligence
• Licensing
• Mergers & Acquisitions

The IMSworld files referenced in the article are:

—Pharmaceutical Company Profiles (Dialog File 449; DataStar File IPCP)

—Product Launches (Dialog File 446; DataStar File IPLL)

—R&D Focus (Dialog File 445; DataStar File IPUR)

—Patents International (Dialog File 447; DataStar File IPIP)

—Product Monographs (Included in Dialog File 446: Product Launches; DataStar File IPOP)

Competitor Intelligence

The foundation for evaluating a competitor and its product line is a thorough sales analysis. Overall company sales, both recent and historic, can be broken down by country to determine areas of greatest geographic strength and growth by therapeutic class to see in which drug classes they are most active. A more detailed product analysis can reveal underlying portfolio strengths or weaknesses and their relative position or market share within a therapeutic area. Different observers consider different measures—some want to see sales by value, some want sales in units, and others want to see number of prescriptions. This type of analysis is available in Pharmaceutical Company Profiles (F449/IPCP).

Check for new drugs coming to the market via Product Launches (F446/IPLL) if your company's share of existing products is to be protected.

In addition to evaluating the performance of products already launched, the company's development program is also significant. Some quantitative and evaluative information on products in research via R & D Focus (F445/IPUR) shows which therapy classes the company is concentrating on, and which new drugs it will bring to the market in the near and medium term.

Completing the picture, a look at the company's patent portfolio through Patents International (F447/IPIP) shows how vulnerable the company is to generic competition, as the patents of its products reach their expiration dates.

Analyzing the key components of a company including its strategy, financials, and corporate structure, using Pharmaceutical Company Profiles (F449/IPCP), is helpful in putting all this competitive information into context.

Licensing

A pharmaceutical company often enters into an agreement with another company to answer a short or medium term need.

For example, a company seeking to bolster its R & D portfolio may want to try to identify early stage drugs it would consider out-licensing and make a proactive approach. This information can be found in R & D Focus (F445/IPUR). If the company is seeking later stage drugs, it can research another company's existing product portfolio including line extensions through Product Monographs (F446/IPOP). It can then contact that company with a view to exploratory discussions. The value of a drug in particular geographic markets is also related to the length of the patent term before expiration; you can check this in Patents International (F447/IPIP).

Alternatively, a company may invent a drug that it realizes has significant commercial potential, but that does not fit in with its overall strategy. Both the company licensing the drug, as well as its prospective licensee will want to know the worth of the drug within the disease areas for which it is indicated so that the royalty arrangements are favorable. This type of information is available in Pharmaceutical Company Profiles (F449/IPCP).

Mergers and Acquisitions

The corporate decision to merge or acquire a company is usually made as part of the strategic planning process. The decision is taken after as much supporting information as possible has been obtained and evaluated.

The candidate may have products in similar or complementary therapy markets that will strengthen the acquiring company, or it may pose a competitive threat that the acquiring company can overcome by joining forces with it. Whatever the rationale, the acquiring company initially needs to undertake a more global approach to identifying suitable targets to find out their overall global positions, main revenue drivers and therapeutic class involvement, as well as their strengths or weaknesses in the main geographic area. Once this top line analysis is complete and key strategic areas of fit are identified, a more detailed breakdown on sales in specific therapeutic areas and their existing product portfolio can be undertaken.

An evaluated analysis on how the company measures up at three critical stages of the product life cycle is available via IMSworld life cycle files; R & D Focus (F445/IPUR), Product Launches (F446/IPLL) and Patents International (F447/IPIP). A company's ability to innovate, launch drugs and protect its intellectual property gives a further dimension to its suitability as an M & A target. Understanding the candidate's overall strategy through pharmaceutical company profiles and its fit with the acquiring company, is vital in the case for the acquisition. Surrounding the picture of the candidate's present situation is its history to date, since it shows how previous decisions have contributed to its actual competitive position.

Searching IMSworld files can help you at every stage of the product life cycle. Full details about these files can be found in the Dialog Bluesheets and DataStar Datasheets or by contacting Dialog Knowledge Center at 800-3-DIALOG (334-2564).

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