Alliance management is the final piece of the business development structure. Formal alliance management groups tend to appear in relatively sophisticated organizations, and they command critical budget dollars.

Since alliance management is one of the most important BD&L functions, these teams can serve on the front line in the battle against generics. Managing successful alliances with generics firms help organizations that depend on development and deals to keep pipelines stocked and revenue flowing.

Generic drug sales are expected to reach $60 billion by next year and today account for more than half of all prescriptions filled in the US. Branded companies must employ a range of defensive strategies if they are to maintain an influential market position after their patents reach expiration.

Setting realistic goals and having a well-thought-out plan is important. Generic competition in any given market is inevitable. Start your next- generation drug development early -- just after product launch -- and be ready to show patients that the benefits gained from the scientific advances of a next-generation drug outweigh the savings that come from switching to generics.

Companies must balance their options among the most desirable and most practical strategies. While R&D may develop a next-generation brand, companies risk early loss of critical revenue streams if they do not pursue a range of secondary and tertiary options.

Close examination shows that dollars invested are not a predictor of staffing levels. Companies, especially those with mid-level and niche brands, are going to prioritize their needs and make the best use of their limited resources, including staff.