Specialty Sales Gets No Resistance

Oct 01, 2008
By Pharmaceutical Executive Editors

Michael Bonney
Cubist Pharmaceuticals has been on a tear. Its flagship drug Cubicin, an IV antibiotic to treat complicated bacterial infections, was the most successful antibiotic launch in US history, based on sales—and the drug is only growing stronger. As the rates of the deadly methicillin-resistant staph aureus infection rise, physicians are using the drug even more. Total revenues for the second quarter of 2008 increased 46 percent over the same period in 2007, reaching a total of $101.8 million.

The company offers an example of stand-out success in the antibiotic market—which is no small feat, given the changing regulatory standards and concern over the rise of resistance to new therapies. But more broadly, it offers a model for other companies who want to better understand how to launch specialty drugs and maneuver within the US specialty space. (Or in the case of AstraZeneca, which signed the company up to promote its injectable antibiotic Merrem, how to find a new partner.)

Here, CEO Michael Bonney sat down with Pharm Exec to talk about how the company built Cubicin's success through specific targeting of customers and focused messages.

Cubicin has become an example of launch excellence. What did the company do to position the drug for such a strong start?

We were building Cubist from scratch in 2003, and it's often easier to create something new with a blank sheet of paper than it is to change something that's been in existence. Change is hard for large, complex organizations to do well.

There are also few incentives that are as powerful as the fear of failure—and in a small company, you clearly have far less margin for failure. The financial realities of our situation at the time of launch made that an easier orientation to act upon. The balance sheet was in pretty tough shape, and we had to hire 75 sales people to launch this drug—so we had to be successful. It brought out this kind of innate humility and willingness amongst the executives to say, there might be a better way to do this. There was not a view that we knew everything or that we had all the answers. We all have the confidence of past successes to be willing to look at the situation objectively, and to change how we're doing things, if the data suggests that we could be doing it better.

Of course, on top of all that there's a high degree of personal accountability inherent in our executive team. All of the executives here felt and feel as though it was their individual, personal responsibilities to ensure that Cubist was successful. If you can harness that energy, as I think we've done, you can accomplish some extraordinary things.

How did the marketing model for Cubicin evolve?

I don't think you can ever be successful without a good product. Our chief scientific officer at the time anticipated that there would be this explosion in MRSA, so the timing was not accidental.

In terms of marketing, we came at it with knowledge of how the industry works, knowledge of the acute antibiotic marketplace, but with, really, all of our key assumptions on the table and a willingness to question all of those. We built an organization designed for the 21st century, and we built it knowing that we weren't going to predict the future with any high degree of certainty.

We originally positioned Cubicin as the new staph drug, not just the new MRSA drug. But it became apparent within six months or so of launch that where doctors really saw unmet medical need—and where we actually had a lot more credibility—was in methicillin-resistant staph aureus, so that actually was an amendment to the launch platform within the first year of launch.

We also decided to distribute the product differently than most organizations. Instead of stocking wholesalers, we went directly to hospitals. That allowed us to see, in real time, who was buying the drug, which was incredibly important for our sales people. It allowed them to go to the hospitals knowing the successes and challenges of prescribers. We learned how physicians were using the drug quicker than you would typically see in a hospital-based launch.

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