A blockbuster drug is a very popular drug that generates annual sales of $1 billion or more for the company that sells it. Common blockbuster drugs are Vioxx, Lipitor, and Zoloft. Blockbuster drugs are used for common ailments, such as diabetes, cholesterol, high blood pressure, and cancer, that many individuals face. Examples in recent years include Lipitor, a treatment for high cholesterol made by US giant Pfizer Inc (NYSE:PFE), and Advair, an inhaler made by GlaxoSmithKline PLC (LON:GSK).

How to launch a blockbuster?

Finding a new blockbuster is difficult. Walmsley’s GSK predecessor called it trying to find a needle in a haystack. And even when you do, the smart science could still fall foul of commercial or regulatory hurdles. It might often be easier to find an existing drug, and consider how to scale it up. I like the simple 5S model developed by Harvard’s John Quelch as a checklist of what matters when seeking to build a blockbuster. It combines some aspects similar to launching any other product, in B2B or consumer markets, but also with other aspects unique to healthcare:

Sheer size. A blockbuster has a transformational impact on a company and an industry, often opening up new markets worldwide. Blockbusters break sales records and exceed expectations. Around 100 pharmaceutical brands exceed $1 billion in annual sales. Procter & Gamble has 23 such brands.
Speed. It’s not just the sales volume, it’s the speed of the sales trajectory. Remember that the original blockbuster was a bomb that could destroy an entire city block. Blockbuster brands address pressing consumer needs so well that they often enjoy vertical sales lift-off. Think Viagra.
Scarcity. A blockbuster brand is often in such high demand that stock-outs and shortages occur in the market. Remember the consumer lines to buy the new i-Phone As imitation is the sincerest form of flattery, the speedy availability of counterfeits is another indicator of popularity.
Sustainability. A blockbuster brand is not a one hit wonder. It is a gift that keeps on giving. Remember Intel’s Pentium chip. Or look at the seven Harry Potter books and the five companion movies. Adding DVD and merchandise sales, and theme parks etc., Advertising Age valued the Potter economy at $15 billion.
Sizzle. A blockbuster does not just address an important need. It does so in an exciting and accessible way. Pfizer’s Lipitor was not the first cholesterol reducer but superior marketing and sales made Lipitor number one. And, in the movie world, remember the magical and memorable special effects in the Star Wars series.

Many experts have weighed in on the supposed “decline of the blockbuster”. It is largely supposed that, with declining profits seen across the board, a change in model is needed to reinvigorate many companies. The loss of patents for several blockbuster drugs is a key reason for this, with research and development(r&d) decline another – industry is investing doubly as much in RD as 20 years ago, but producing only a fraction of past results. The need to continuously renew the pipeline every decade, alleviated only a little through mergers and buy-outs of me-too brands and generics companies, is questionably unsustainable. One proposed solution to the problem is diversification – as has been seen in recent weeks, with both GSK and Merck spinning off their consumer health and women’s health brands respectively.