Commercial Insight: Insomnia Strong brand identity critical to differentiation in an increasingly crowded market

Publication Date	June 2007
Publisher	Datamonitor
Product Type	Report
Pages	116
ISBN Number	not applicable
Product Code	DAT05900

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Summary

Ambien has remained the clear leader in the insomnia market for over a decade, with 2006 sales of over $2.3 billion across the seven major markets. The success of Ambien is attributable to a favorable side-effect profile and half-life. However, due to recent patent expiries in the US and Japan, Ambien's leadership status is finally under threat and the market is undergoing some dramatic changes

This report focuses on the leading prescription therapies used in insomnia, with sales and volume country- and indication- specific forecasts to 2016
Assessment of current and future opportunities and threats in the insomnia market across the seven major pharmaceutical markets
Future market events that are expected to affect drug revenues are discussed and quantified for each of the seven major markets
Discussion of lifecycle management and branding strategies, focusing on Sanofi-Aventis, Sepracor and Takeda with insight from opinion leaders

Sanofi-Aventis's continuing market leader status is attributable to astute portfolio management, beginning with the launch of a controlled release formulation of Ambien, Ambien CR, which Datamonitor forecasts to attain seven major market sales of $1.98 billion by 2016.

Strong branding supported by direct-to-consumer (DTC) advertising is an essential element to successful penetration of the insomnia market. Of the three insomnia products launched in 2005, Sepracor's DTC advertising campaign for Lunesta has been the most successful owing to the pervasive use of a strong marketing symbol.

Although Takeda's DTC advertising of Rozerem is distinctive, the strategy has been criticized by interviewed opinion leaders for being unnecessarily complex, a factor which hinders the target audience's understanding of the drug's indication.

Assess the impact of events such as patent expiries and new product launches on the sales of key marketed insomnia products
Quantify the future size of the insomnia market, in terms of volume and value, in each of the seven major markets
Identify lifecycle management and branding strategies that ensure long term growth for key players and strong uptake for market entrants respectively

Content

Chapter 1 Executive Summary
- Scope and objective of the analysis
- Datamonitor insight into the insomnia market
- Contributing experts
- Related reports
Chapter 2 Market Definition And Overview
- Market definition for this report
- Current market situation
- Insomnia market grows strongly to reach $4.6 billion in 2006
- US market continues to grow while France shows the greatest decline
- Plain non-barbiturate drugs dominate the market, with the top six brands contributing to 81% of the total market
- Sanofi-Aventis's Ambien remains the clear market leader
- Strategic scoping and focus
Chapter 3 Country Market Assessments
- Summary of environmental issues affecting insomnia market size
- Opportunities
- Global ageing population will increase the sleep maintenance insomnia population
- The emerging markets of India and China cannot be ignored
- Reduction in residual sedation and the provision of effective treatments for elderly patients remain significant unmet needs
- Targeting co-morbid disorders can expand a product's customer base and provide differentiation
- Threats
- Perception of insomnia as a disorder of minor importance hinders patient presentation
- Increased generic competition
- Parallel trade; currently minimal but EU expansion is likely to drive down price
- Revision to labeling of hypnotics will deter use although impact will be minimal
- US: opportunities and threats
- Opportunities
- Advocacy and DTC campaigns drive public awareness of insomnia
- Target the self-medicating population and unlock the massive insomnia patient potential
- High price of branded drugs in the US compared to the other major markets
- Threats
- Curbing of DTC advertising will lead to greater emphasis on risk of products
- Influx of generic zolpidem represents a barrier to market entry and introduces cost competition
- Proposed cut to Medicare will reduce availability of insomnia products to elderly patients
- Japan: opportunities and threats
- Opportunities
- Rapidly rising population over the age of 65 will boost prevalence of sleep maintenance insomnia
- An underdeveloped generics market slows brand erosion
- Japan regulators aim to speed up drug approval
- Threats
- Despite being underdeveloped, generics prescribing in Japan is set to increase in the future
- France: opportunities and threats
- Opportunities
- The Internet is recognized as a source of high quality medical information by consumers in France
- Threats
- Generic incursion on the insomnia market is most rapid in France
- Germany: opportunities and threats
- Opportunities
- Heavy use of herbal hypnotics means high potential for switching
- High level of activity in sleep disorders research is conducive to acceptance of new drugs
- Threats
- German doctors set to receive bonuses for prescribing generics
- Italy: opportunities and threats
- Opportunities
- Negligible impact of generics
- PCP involvement in development of insomnia consensus report should lead to high rates of guideline implementation
- Threats
- Extensive cost containment measures are in place
- Conservative treatment approach among primary care physicians will hinder uptake of new entrants
- Trend towards prescribing older hypnotics means a challenging market for novel drugs
- Spain: opportunities and threats
- Opportunities
- Reduced pharmaceutical tax set to save companies selling insomnia treatments over $188,000 per annum
- Threats
- Government awareness campaign promotes generic use in Spain
- UK: opportunities and threats
- Opportunities
- Reduced clinical trial times will hasten pipeline insomnia products to the market
- Threats
- Failure of NICE to distinguish second-generation hypnotics from benzodiazepines
Chapter 4 Forecast Analysis
- Key events
- New product launches in the US and EU
- Ambien CR launched in EU
- Rozerem launched in EU
- Indiplon IR
- Org-50081
- Zolpidem sublingual spray
- Sublinox
- Indiplon MR
- Eplivanserin
- VEC-162
- PD-6735
- ACT-078573
- New product launches in Japan
- Rozerem
- Indiplon IR
- Indiplon MR
- Eplivanserin
- Org-50081
- VEC-162
- ACT-078573
- Additional Indications
- Rozerem: label expansion to include circadian rhythm sleep disorders
- Patent expiries
- Ambien (zolpidem)
- Lunesta (eszopiclone)
- Sonata (zaleplon)
- Rozerem (ramelteon)
- Data definitions, limitations and assumptions
- Standard units
- Japanese market data
- Derivation of sales forecasts and pricing trends
- Generic erosion and pricing assumptions
- Forecasts
- Forecast methodology
Chapter 5 Commercial Impact And Lifecycle Management: Case Studies
- Introduction
- Careful portfolio management will provide long-term growth
- Case study 1: Sanofi-Aventis leads the way in successful franchise management
- Ambien brand now faces strong generic competition
- Launch of controlled release formulation is a key strategy for Sanofi-Aventis
- New drug class holds the key to continuing Sanofi-Aventis's successful insomnia portfolio
- Strong branding supported by DTC advertising is an essential element to successful market penetration
- Case study 2: Ambien DTC advertising campaign
- Focus placed on differentiating Ambien CR from Ambien
- Ambien CR's DTC campaign provides holistic approach to insomnia management
- Case study 3: Lunesta's DTC advertising campaign
- Sepracor's 'Luna Moth' campaign has successfully created a strong brand identity
- Case study 4: Rozerem's DTC advertising campaign
- Lag-time between launch and DTC campaign has hindered uptake
- Uniqueness of DTC advertising not necessarily equated with success
Bibliography
- Journal papers
- Websites
- Datamonitor reports
Appendix A - Market Data And Major Brand Key Facts
- Summary of insomnia market data
- Key marketed brands
Appendix B - Market Forecast Data
- Seven major market total
- M5EU
- US
- Japan
- France
- Germany
- Italy
- Spain
- UK
Appendix C
- Contributing experts
- Report methodology
- About Datamonitor
- About Datamonitor Healthcare
- About the Disease analysis team
- Disclaimer