By contrast, many companies have had more success with efforts to improve the safety of products or to get them approved for use in treating additional diseases. Examples are Pfizer's Neurontin, a successful antiepilepsy medication driven predominantly by perceptions of safety differences, and the company's Celebrex, a Cox-2 inhibitor that reduces pain and inflammation and is thought to be easier on the stomach than aspirin.
The breadth of approved uses for drugs can also be a significant source of differentiation. We found that nearly two-thirds of those in competitive therapeutic areas, such as depression and allergies, went on to receive regulatory approval for a broader range of treatments after they came on the market (Exhibit 2). Eli Lilly's Prozac, for example, was launched in 1987 to treat depression but has since been approved for use in a range of conditions. Today, drugs entering these competitive areas often need to have a similarly broad range of regulatory endorsements at the time of their launch, thereby raising the bar for compounds in development