- Home
- Investors
- Annual Review 2006
- Optimising the performance of key products
Optimising the performance of key products
Diabetes: Life is bittersweet
Our pipeline is vital – but we also focus our minds and resources on maximising the performance of our existing key products. This is the best way to build sales while also improving quality of life for patients. A good example is the way in which we’re extending our capability in diabetes, through the Avandia group of products.
The race
Diabetes is a common condition, with
around 246 million people worldwide
suffering from the disease, according
to the International Diabetes Federation
(IDF). Around 90 per cent of these people have
type 2 diabetes. Obesity and physical
inactivity are the risk factors most
frequently associated with diabetes.
Type 2 diabetes is a chronic, progressive illness often linked to premature death. It is characterised by high blood sugar levels that occur when the body does not produce enough insulin or does not respond properly to its own natural insulin, a condition called insulin resistance. Sugar then builds up in the blood instead of going into the cells and starves the cells of energy. Over time, high blood sugar levels can cause diabetes–related complications, affecting the eyes, kidneys, nerves or heart.
A condition known as impaired glucose intolerance or ‘pre–diabetes’ is considered a key stage in the development of type 2 diabetes – trials have shown that 29 to 55 per cent of those with pre–diabetes will develop type 2 within three years. The number of people with pre–diabetes is expected to increase to approximately 500 million by 2025 (source: IDF).
The response
Avandia is an oral antidiabetic medicine which acts primarily
by allowing the body to use its own insulin more effectively. It improves
blood sugar control in adults with type 2 diabetes.
During 2006, two important outcome trials indicated that the use of Avandia may lead to better results with two groups of patients – those in the early stages of type 2 diabetes and those who have yet to develop it (pre–diabetes).
In September 2006, the DREAM (Diabetes Reduction Assessment with ramipril and rosiglitazone Medication) trial showed that Avandia can reduce the risk of progression from pre–diabetes to type 2 diabetes in high risk patients by 62 per cent, relative to placebo.
Three months later, ADOPT (A Diabetes Outcome Progression Trial) demonstrated that Avandia reduced the rate of monotherapy failure by 32 per cent compared to the most commonly prescribed oral antidiabetic agent.
Data from both these studies are expected to be filed with regulatory agencies during the first half of 2007.
Key products are performing well
We deliver medicines and vaccines that meet patient needs and deliver value
Sales of key Pharmaceutical and Consumer Healthcare products continued to grow in 2006 and to deliver benefits for both patients and our shareholders.
Improved Pharmaceutical performance
Pharmaceutical turnover rose 9 per cent to £20.1 billion, driven by a strong performance in the United States where sales were up 16 per cent to £10.4 billion. Sales in Europe were impacted by generic competition to several products, although overall turnover rose by 1 per cent to over £5.5 billion. Sales in International markets increased by 6 per cent to £4.2 billion, with sales in Japan up 8 per cent to £860 million.
Seretide/Advair, for asthma and COPD, performed well globally with sales rising 11 per cent to £3.3 billion. “One of the milestones of 2006 was the TORCH study, which we believe will have a major impact on treatment for COPD patients” says David Stout. Applications to extend the indication for COPD on the label for Seretide/Advair to include a mortality claim have been made in markets worldwide.
“Sales of our Avandia group of products for diabetes increased by 25 per cent to £1.6 billion. We also received results of two very positive outcome trials – DREAM and ADOPT.” See above for details.
Globally, 2006 was also a strong year for Lamictal, for bipolar disorder and epilepsy, and this product is now a near £1 billion brand.
Sales of Coreg, for heart disease, grew by 38 per cent to £779 million. We will launch Coreg CR, a ‘once-a-day’ product, in March 2007.
Valtrex for herpes performed well, with sales up by 24 per cent to £845 million, driven by patients switching to suppression therapy, particularly in the US.
Sales of key products continued to grow and to deliver benefits for both patients and our shareholders
“Vaccines have been a major success story for us, with sales up 23 per cent to £1.7 billion,” adds David. “Infanrix, Paediarix and Fluarix all performed well and we brought a new vaccine, FluLaval, to market in the US. We’re now one of the largest providers of flu vaccines in the world. Total sales of Boostrix, Fluarix/FluLaval and Rotarix reached £274 million, up 91 per cent.”
Of our high potential products, we saw encouraging sales for Avodart, for enlarged prostate, up 69 per cent to £216 million, and in its first full year, our share of co-promotion income for Boniva/Bonviva, for osteoporosis, was £95 million. Requip, for Parkinson’s disease and restless legs syndrome, performed strongly in the US and will be boosted by two follow-on products, Requip CR for restless legs syndrome and Requip XL 24-Hour for Parkinson’s disease, both of which have now been filed in the US. Total sales of Requip in 2006 grew 74 per cent to £268 million.
In 2007, we also expect to launch Trexima, for migraine, and Wellbutrin XR, for depression, which was approved in Europe in January 2007.
Consumer Healthcare continues to grow
“2006 saw our Consumer Healthcare business unlock its growth potential across the portfolio,” says John Clarke, President, Consumer Healthcare. Consumer Healthcare sales were £3.1 billion, a 6 per cent increase over 2005 at CER. “We are driving growth through greater innovation and more effective marketing strategies on strong brands.” Sales of Sensodyne grew strongly, up by 19 per cent, Lucozade grew by 14 per cent, smoking control by 7 per cent and Panadol by 6 per cent. Aquafresh sales declined 3 per cent to £283 million.
“Our consumer brand portfolio will be strengthened further in 2007 with the launch of ten new products, including alli, the only FDA-approved weight-loss product available to consumers without a prescription, and it is the first clinically-proven over-the-counter product to be combined with a comprehensive support program,” adds John. Approved for use by overweight adults in conjunction with a reduced-calorie, low-fat diet, alli helps people lose 50 per cent more weight than with diet alone.
“Additionally, with the acquisition of CNS towards the end of 2006, we brought two leading brands into our portfolio. Breathe Right and FiberChoice are leaders in their categories in the US and provide another growth opportunity. Using our scale and expertise, we will introduce these products into markets worldwide.”
Commercial and operational excellence
“We continue to improve the performance of our sales teams,” says David Stout. “This has been recognised in the US where we tied as best overall pharmaceutical company among managed care medical directors in an independent autumn 2006 survey.
“Our consumer brand portfolio will be strengthened further in 2007 with the launch of ten new products”
“In terms of operational excellence, we again identified areas of spend where global sourcing can generate savings. We now concentrate some of our financial services, IT support and IT lifecycle management in low cost countries such as India which offer tremendous talent.”
Print-friendly version
Fighting diabetes
Married with two daughters, Julieta Camacho is a 58–year–old diabetic from Mexico City. On the advice of her doctor, she switched to Avandia initially and then to Avandamet.
“In May 2000, I was sent to hospital with a diabetic coma diagnosis. Although I showed blood glucose levels of over 500mg, I did not know I was diabetic.
“I received antibiotics, solutions and insulin for some days, followed by various doses of metformin. Due to a lack of response, I then received Avandia once a day. My glucose levels improved and I felt much better. Then in 2004 my doctor advised me to change to Avandamet twice a day, to stabilise my glucose levels. I also had to continue my diet and regime of physical activity.
“My glucose levels are now almost normal all the time, but the most important thing is that I can have a more normal life. The last visit to the doctor was three months ago and he tells me that I am stable, that my diabetes is well controlled and that my health has improved considerably. The doctor is optimistic and says that my prognosis is good.”
