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Specialty niche drugs set to fill pharma pipelines

From small biotechnology firms to large pharmaceutical organizations, a growing number of product pipelines include specialized niche drugs rather than blockbuster-hopeful products. This trend signals untapped profitability in dozens of niche drug markets, according to pharmaceutical research from business intelligence firm Cutting Edge Information.

Industry-leading pharmaceutical companies discovered holes in their portfolios that needed to be filled. Whether companies lack a drug in an unfamiliar therapeutic area or an unpopular disease state, they are willing to spend money on developing small niche drugs known to bring in stable revenue, says Cutting Edge. Funding a specialized niche product requires smaller investments in clinical research, less commercialization dollars and fewer sales reps, therefore, the total cost to gain regulatory approval is much less than investing in a developing blockbuster drug.