Effectiveness of Market Strategy for Management of Brand Portfolio Consisting of Innovative Drugs and Their Generic Equivalents
Ładowanie...
Data
2012
Autorzy
Tytuł czasopisma
ISSN czasopisma
Tytuł tomu
Wydawca
Wyższa Szkoła Biznesu - National-Louis University in Nowy Sącz
Abstrakt
Empirical evidence implies that soon after patent expiration generic
competitors enter the market with their usually cheaper substitutes of the
original drugs. For a long time previously innovative companies primarily
had lost their interest in the off-patent drugs and had focused their attention
entirely on promotion of new innovative drugs (new chemical entities - NCE)
which only had just been approved for manufacturing and selling. However
over recent years the number of newly introduced innovative drugs has been
decreasing, which in turn has led to growing market competition.
Currently a different approach may be observed as innovator
pharmaceutical companies strive to maintain a strong competitive market
position even following expiration of the drug’s patent. However, they try to
avoid strengthening their market edge based solely on price. Such an approach
would inevitably lead to significant loss in sales and a fall in product margins.
It is for that reason that some innovator companies decide to enter the market
with a one or more ‘generic’ versions of their original drugs, ie. to implement
a brand portfolio strategy on a single chemical entity market.
This paper examines the results of such strategies adopted in the Rx
(prescription medicines) markets including analysis of reasons for failure and
success. As it stems from research completed, the brand portfolio strategy
is very popular in some developed pharmaceutical markets and very often
brings significant financial benefits to innovator companies. In case of the
strongly regulated Rx pharmaceutical market in Poland, very different results
have been observed – this kind of strategy displays weaker popularity and
relatively seldom brings intended effects to the patent holders.
Opis
Słowa kluczowe
generic drugs, pharmaceuticals, competition, strategy
Cytowanie
Business and Non-Profit Organizations Facing Increase Competition and Growing Customers' Demands. Ed. by A. Nalepka, A. Ujwary-Gil. Nowy Sącz : WSB-NLU, cop. 2012. – S. 250-265