Why so many new products fail in Pharma Business? Take a deep dive in the process involved to get the answers

Many times, R&D spends a significant amount of money, time and effort developing new products, only to see them either failing when commercialized or not getting commercialized

If you take a deep dive and have discussions with various stakeholders, it will reveal reasons for the debacle.

While R&D is responsible for the development of new products, it is the marketing and sales teams which are responsible for their commercialization.
Given this, it should be the marketing and sales teams who should recommend and drive which products need to be developed. Additionally, they should provide information to the development team on the intended selling price, the manufacturing cost, and the desired margins.

While R&D and other stakeholders may also have excellent recommendations for new product development, however their suggestions should also be approved by marketing and sales teams.

Unfortunately, some new products are developed without the requirements emerging from the marketing and sales teams. Sometimes when products are developed based on the requirements of marketing and sales teams, there is no consideration of the manufacturing cost and pricing of the finished product as recommended by marketing and sales teams.

It is also important that all stakeholders namely procurement, finance, regulatory and manufacturing works in sink with the new product development initiatives of marketing and sales team to ensure commercialisation does not get delayed.

Organizations where new product development is guided by the requirements of the marketing and sales teams tend to be more productive and successful in commercializing their innovations.

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