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Pliva/Indevus: Moving Up the Value Chain

Executive Summary

Pliva's not the obvious choice of US marketing partner for Indevus' overactive bladder drug Sanctura. With no primary care presence in the US, the company will likely face an uphill battle to commercialize the drug; more so given the stiff competition in OAB from some of the world's leading Big Pharma marketeers. Yet the deal's about more than success with Sanctura. It's about both parties moving up the value chain--Pliva into the US proprietary drugs arena and Indevus into sales and marketing.

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After a fervent US expanstion capped by the surprise $150 million licensing of Indevus OAB treatment Sanctura, proprietary ambitions at the Croatian generics play Pliva may be stalling. Sanctura sales have disappointed, illustrating again the challenges of taking a specialist approach to primary care marketing. Pliva's best bet may be to switch growth engines to its promising biogenerics portfolio.

Pliva: Two Steps Forward, One Step Back?

After a fervent US expanstion capped by the surprise $150 million licensing of Indevus OAB treatment Sanctura, proprietary ambitions at the Croatian generics play Pliva may be stalling. Sanctura sales have disappointed, illustrating again the challenges of taking a specialist approach to primary care marketing. Pliva's best bet may be to switch growth engines to its promising biogenerics portfolio.

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