345% rise in spend from Ph I to II development

Out of 14 brands profiled, the drugs' average budget increased 345% from Phase I to Phase II of clinical development, according to a recent report by pharmaceutical business intelligence firm Cutting Edge Information (visit: www.earlystagemarketing.com for more details).

The report, titled Early-Stage Pharmaceutical Marketing Budgets: Preparing for Product Launch, shows that the 14 drugs received an average of $192,000 in commercial backing during preclinical development. The average financial support rose to only $266,000 for Phase I. During Phase II, however, the average budget soared to $918,000, an increase of 345% over Phase I spending.

"Pharmaceutical companies keep commercial spending relatively in check in preclinical and Phase I development, regardless of whether they are promoting a future blockbuster or small, niche brand," said Jon Hess, research team leader at Cutting Edge and lead author of the report. "It is not until Phase II that most drug developers are comfortable enough with their products' clinical performance to date, overall commercial prospects, and peak sales projections in order to differentiate spending from the baseline levels allocated in preclinical and Phase I development," he noted.