They Need to Cash in Fast

The pharmaceutical market is coming to resemble the movie business, with a few blockbusters yielding a disproportionate share of total industry revenues. In 1992, says a report from IMS Health, just four brands had achieved “megabrand” status by recording $1 billion in sales. Last year, 55 pharmaceutical products reached the $1 billion mark, accounting for 45 percent of the industry’s revenues. Pharmaceutical firms are now under pressure to create what IMS terms “mega blockbusters”—products that generate $1 billion in sales during their first year on the market.