A recent study by pharmaceutical research firm Best Practices reveals the processes, co-promotion agreements and marketing activities leading pharmaceutical companies employ to create profitable partnerships with diagnostic companies.

Increases in specificity and customization of therapeutic interventions drive a rise in partnerships between pharmaceutical and diagnostic companies, the study found, but many partnerships have inefficiencies, unmet deadlines and an extended budget.

The report, “Pharmaceutical and Diagnostic Companies: Can They Work Together?”, details many aspects of successful partnerships.

“At the root of a successful pharmaceutical and diagnostic company partnership is a deep understanding of the other’s business model,” said Best Practices Vice President Paul Meade. “This understanding is the first step necessary to reach a successful partnership.”

Another finding from the study is that Diagnostic companies minimize investment risk by using a variety of factors to determine tests’ potential profitability, relying on pharmaceutical companies for marketing funding and sales force co-promotion support.

Diagnostic test development is a complex process that may take up to five years, Best Practices says, but pharmaceutical company support can speed the diagnostic test commercialization and market uptake processes. Also, increasingly complex diagnostic test development processes have shifted product marketing timelines and activities more toward the pharmaceutical model, the firm notes.

Other key findings from the Best Practices report include:

  • Diagnostic companies’ marketing mixes focus heavily on influencing key opinion leaders and clinicians.

  • Discerning differences between small and large diagnostic companies and large reference laboratories is critical to understanding their abilities to market new products.

  • Diagnostic test development partnerships and strategic alliances established early in the drug development process tend to have a higher success rate.

  • Clear contracting agreements are key factor to successful partnerships.

  • Pharmaceutical companies time new product to launches to correspond with a test’s market uptake.
  • The best practices and managerial insights included in this report are drawn from interviews Best Practices conducted with executives from 18 diagnostic and pharmaceutical companies.

    “Pharmaceutical & Diagnostic Companies: Can They Work Together?” includes best practices in developing a diagnostic test, preparing the market for a diagnostic test, pharmaceutical companies’ influence on the development of a diagnostic test, contributing to market acceptance of a diagnostic test, and critical factors for successful diagnostic and pharmaceutical companies partnerships.

    The report from Chapel Hill-based Best Practices also includes a cholesterol partnership case study and a herpes partnership case study.

    Best Practices: www.best-in-class.com