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Why are two-thirds of pharmaceutical product launches unsuccessful?

Estimates vary on how many pharmaceutical launches fail. According to Deloitte, 36% of pharmaceutical products fail to meet their initial launch expectations. Mckinsey’s research, on the other hand, states that as many as two-thirds of drug launches don’t meet launch objectives. Most research findings tend to fall within the Deloitte-McKinsey spectrum — others reach up to a 90% failure rate.

Speaking on the prevalence of launch failures, IQVIA data indicates that 80% of new pharmaceutical launches do not show improvement on their initial sales trajectory within the first six months to two years post-launch.

All of these figures ultimately paint the same picture: Successful pharmaceutical product launches and market access strategies are the exception, and not the rule. Most fail to meet expectations — but why?

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