The growing importance of branding, as pharma reaches crossroads

Not a single pharmaceutical brand or company name appeared on the listof the world's 75 most valuable brands published in June 2000 by Interbrand, according to the international brand specialist company. However, while patents will almost certainly remain the chief source of corporate economic value added for many leading drugmakers, important and irreversible developments are taking place which militate in favor of brands, according to a new book published by Interbrand Healthcare, entitled Brand Medicine: the role of branding in the pharmaceutical industry.

The rights conferred in a patent rarely last more than 20 years, and it can take up to 10 years to get a new product to market, so the patent owner has only a limited period of exclusivity. In contrast, the rights conferred in a trademark can last indefinitely, subject to the regular renewal of the registration and other rules of maintenance, writes Tom Blackett, deputy chairman of the Interbrand Group. Successful pharmaceutical companies are rich in intellectual property which has, historically, taken the form of patents. Brands can add layers of sustainable value to these hard-won assets, and the skill in prolonging a good product's life lies in managing the branding process, he says, forecasting that this will be the future of value creation in the pharmaceutical industry.

Informed consumers, anxious to influence the medication they are being prescribed