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New Drugs Spend $39 Million to Launch

June 2, 2005

Niche pharmaceutical brands invest an average of $39 million in marketing between Phase III trials and the first year on the market, according to a new report from Cutting Edge Information. Niche drugs are those products slated to peak at annual sales of less than $500 million. The largest of these products have a shot at mid-level status ($500 million to $1 billion in annual sales), but most drugs will fall well shy of that mark. The study, "Pharmaceutical Product Commercialization: Phase III to Post- Launch Resource Allocation," examines marketing investments for 16 brands.

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