When an organization introduces a new product that is a new version or an enhancement of an existing product, this can include such features as varying dosage forms, digital opportunities, delivery mechanisms and indications.
STRUCTURED, EFFICIENT AND EFFECTIVE
CROSS FUNCTIONAL / CROSS MARKET METHODOLOGY
Line extensions require timely planning as often substantial clinical research may be involved. Also Line Extensions may not distract from current commercialization strategy and operations. Last but not least, assurance should be derived for profitability in specific markets or market segments.
Systematic cross functional analysis of the opportunities versus profitability reduces the development burden, resulting in better use of resources and a proven better ROI. Often the question arises if a product innovation should be launched as a line extension or can be better positioned as a new product.
Often we see line extensions developed which are difficult to translate to financial benefits, due to –to mention a few examples- limitations given by the payers (e.g. additional rebates), unproven additional adherence by the patients, IP challenges or lack of opportunity to communicate the value to the prescriber.