What Happens When the 10 Years of Glory Come to an End?

2-minute read

When a patent expires, defending value becomes much harder. But that is precisely when knowing how to negotiate matters most.

The patent expires, a generic enters the market, regulatory pressure mounts and, suddenly, everything seems to come down to a single conversation: price. After years of developing the market, building knowledge, training teams, supporting healthcare professionals and deepening your understanding of a particular condition and the patients who live with it, the negotiation changes dramatically. The generic arrives with a powerful argument: price. But that does not mean it is the only thing that matters.

How can you strengthen your negotiating power when a patent expires?

Three tips:

1. Aim to remain the go-to partner.

Your strength no longer lies in exclusivity. It lies in everything you have built over those years: knowledge of the medicine, proven experience, an understanding of the condition and the patient, a specialist team, responsiveness and a longstanding relationship. Draw on that knowledge to lead the conversation with your counterpart on an equal footing. Hospital staff have neither the time nor the inclination to have five identical conversations with five different companies. Being the company that knows the most, understands their needs best and contributes the greatest value can still give you a privileged position.

2. Negotiate more than price. Negotiate total value.

If you negotiate on price alone, you will inevitably find yourself competing over who can offer the lowest price. The conversation should focus not only on paying as little as possible, but on getting the greatest value for what is paid. Identify the other variables that matter to your counterpart and bring them into the discussion. These might include security of supply, ongoing service, monitoring, deliveries, stock availability, technical information, therapeutic innovation, scientific training, best-practice meetings, collaboration and deeper expertise in specific clinical areas, educational materials and patient support. Be clear about what you are asking for and what you are offering in return, so that you never give something away without receiving something of equal—or greater—value.

3. Strengthen your position in the balance of power.

Power in a negotiation does not come only from price or alternatives. It also comes from experience, trust, information and accumulated knowledge. Highlight what you have built together over ten years: what you have learned, the progress you have made and the challenges you have overcome. Some intangible assets are difficult to replicate: “No one knows this condition, this treatment and this patient population better than we do.” That knowledge builds trust. And trust also creates negotiating power. Remind them of what you achieved together in the past and, crucially, talk about what you can still achieve together in the future.