- Author
- Barłożewski Krystian (Warsaw School of Economics, Poland)
- Title
- Effectiveness of Market Strategy for Management of Brand Portfolio Consisting of Innovative Drugs and Their Generic Equivalents
- Source
- Business and Non-profit Organizations Facing Increased Competition and Growing Customers' Demands, 2012, vol. 11, s. 250-265, tab., bibliogr. 14 poz.
- Keyword
- Leki, Przemysł farmaceutyczny, Konkurencja, Strategia rynkowa
Medications, Pharmaceutical industry, Competition, Market strategy - Note
- summ.
- Abstract
- 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. (original abstract)
- Full text
- Show
- Bibliography
-
- Bates A., How to mount an effective defense against generics, "eyeforpharma", February 14, 2011, accessed May 22, 2012, http://social.eyeforpharma.com/marketing/dr-bates-talkback-how-mounteffective-defense-against-generics
- Boswell C., Pharma enters emerging markets via generics, ICIS Corporation, October 7, 2009, accessed May 22, 2012, http://www.icis.com/Articles/2009/10/12/9253207/pharma-enters-emergingmarkets-via-generics.html
- Daly C., Are branded generics still a cost-saving option?, "Prescriber", 2007, vol. 18, issue 6, p. 10.
- DePalma A., Branded generics: The emerging opportunity, "eyeforpharma", July 5, 2011, accessed May 25, 2012, http://social.eyeforpharma.com/marketing/branded-generics-emerging-marketopportunity.
- Hollis A., How do Brands' "Own generics" Affect Pharmaceutical Prices, "Review of Industrial Organization", 2005, vol. 27, p. 329.
- Hollis A., The anti-competitive effects brand-controlled "Pseudogenerics" in the Canadian pharmacutical market, "Canadian Public Policy - Analyse de Politiques", 2003, vol. 29, issue 1, p. 24.
- Hollis A., The importance of being first: evidence from Canadian generic pharmaceuticals, "Health Economics", 2002, vol. 11, p. 723-724.
- Kanavas P., Costa-Font J., Seeley E., Competion in off-patent drug markets: Issues, regulations and evidence, "Economic Policy", 2008, vol. 23, issue 07, p. 536.
- Lamb, Branded Generics: Misunderstood but lucrative, "PharmacyTimes", October 7, 2008, accessed May 20, 2012, http://www.pharmacytimes.com/publications/issue/2008/2008-10/2008-10-8707
- Reiffen D., Ward M., "Branded-generics" - as a strategy to limit cannibalization of pharmaceutical markets, in Working Papers, vol. 0502, p.1-2, Arlington: University of Texas at Arlington, 2005.
- Rubin A., "Branded" Generic Drugs, www.therubins.com, December 17, 2011, accessed May 15, 2012, http://www.therubins.com/legal/branded.htm
- Senior M., AstraZeneca Outlines Branded Generics Strategy at Emerging Markets Event, "EuroPharmaToday", March 17 2010, accessed May 22, 2012, http://www.europharmatoday.com/2010/03/astrazeneca-outlines-branded-generics-strategy-at-emerging-marketsevent.html
- Singer N., Drug Firms Apply Brand to Generics, "The New York Times", February 16, 2010, accessed May 21, 2012, http://www.nytimes.com/2010/02/16/business/16generic.html.
- Sullivan M., Brand Extensions: When to Use Them, "Management Science", 1992, vol. 38, issue 6, p. 793-806.
- Cited by
- ISSN
- 2543-540X
- Language
- eng
