The Patent Cliff: From Threat to Competitive Advantage

1 May 2025

The pharmaceutical landscape is currently undergoing a tectonic shift. Just as the earth’s plates shift, leading to earthquakes and other significant and sometimes catastrophic geological changes, the expiration of patents for numerous blockbuster drugs is poised to reshape the industry.

Known as the “patent cliff”, pharma companies impacted will experience a sharp decline in revenue when their drug patents expire. In fact, approximately $300 billion in annual revenue is at risk through 2030, forcing major players to adapt and find new sources of growth.

More specifically, 190 drugs, 69 of which are blockbusters, will lose their patent exclusivity by 2030 (PharmaVoice).

This loss of exclusivity opens the door to generic and biosimilar competition. In many cases, the entry of competitors has the potential to result in a market share reduction of 80% or more for the branded drug within the first year.

This rapid decline places immense pressure on pharmaceutical companies to develop new and innovative therapies.

However, innovation alone may not suffice; companies must also optimize their operations and processes to mitigate revenue erosion.

In this blog, we’ll discuss how the adoption of digital solutions will enhance long-term growth through efficiency and agility.

Replacing Lost Revenue through Efficiency

It is not enough to counter the patent cliff simply through the development of new drugs.

Pharma companies also need to accelerate time-to-market while maintaining compliance and cutting costs.

To do so, the industry is leaning into reorganization and operational efficiency. Examples of reorganization include mergers and acquisitions such as Pfizer’s purchase of Seagen for $43B, and spin offs such as J&J’s restructuring of its consumer health business into a new company now known as Kenvue.

Streamlining operations help companies be leaner and faster. Digital tools play a central role in packaging, labeling, and artwork management.

By streamlining these critical workflows, companies gain the speed and accuracy they need to remain competitive.

Reimagining Workflows and Modernizing Processes

You may find it hard to believe that the way labeling artwork is created and updated hasn’t changed much in 20 years. Manual processes like copying and pasting are still surprisingly common.

That’s where digital transformation becomes an equalizer.

With artwork automation, AI, and automated quality checks, the industry is reimagining how labeling gets done, including:

Faster labeling creation
Fewer errors and rework
Accelerated approvals and launches

Let’s take a deeper dive.

Building a Foundation for Future Growth

The adoption of digital solutions creates long-term strategic benefits. For example:

Data-Driven Decisions: Achieve full visibility into workflows and automatic metrics, thereby proactively identifying and resolving bottlenecks.

Global Collaboration: Connect teams across regions and time zones with cloud-based solutions.

Sustainability: Support environmental goals and save money via the reduction of paper-based processes.

An artwork management solution like Esko WebCenter smooths the path for integrating labeling workflows, applying consistent branding, and managing massive volumes of artwork updates seamlessly.

Additionally, a customer who implemented WebCenter for operational efficiency is now expanding its use to other departments such as clinical. This demonstrates how early digital adoption is scalable across a company’s business.

Turning Challenge Into Advantage: Embracing Digital for Long-Term Success

There is a positive side to the patent cliff. Rather than viewing it as only a loss of exclusivity, think of it as an invitation to innovate.

By embracing digital solutions and rethinking traditional workflows, pharmaceutical companies maximize their chances of becoming stronger, faster, and more future-ready.

These tools don’t just solve the immediate problem, they set the stage for smarter go-to-market strategies that minimize the impact of the fall from the patent cliff.

If you’re facing the patent cliff, contact us today to learn how WebCenter can help you gain the edge you need in a changing market.

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