A Study on Developing Biopharmaceutical Strategies for Domestic Pharmaceutical Companies
Date Issued
2016
Date
2016
Author(s)
Chen, Chien-Yu
Abstract
During the past years, owing to the supporting policies and environment, biopharmaceutical companies have received great attentions and high valuation in the capital market. However, the share of Taiwan health care spending for domestic pharmaceutical companies has declined from 33% in 1995 to 23% today. This clearly implies that Taiwan''s pharmaceutical companies, which have been relying upon generic drugs as their major strategy, face great competitive threat and have to consider serious change. Domestic pharmaceutical companies need to re-examine their competencies and formulate competitive strategies to respond to the changes of the external environment, especially to meet market demand by developing biologic drugs with cutting-edge technology. Our study is to explore how these companies can develop effective strategy to gain competitive adventages and ensure longterm survival. To achieve research goals, we select three foreign pharmaceutical companies with similar backgrounds of Taiwanese pharmaceutical companies. One of these cases is Sandoz, who is the famous generic pharmaceutical in the world. The rest of cases are biopharmaceutical companies, Celltrion Pharma and Samsung Bioepis, who are all located in the Asia. These companies adopt diffent strategies, such as joint ventures, mergers and acquisitions and strategic alliances, to extend their business scope and build up new competencies, and hence achieve great performance in this competitive pharmaceutical market. We take angles of both resource-based view and industry structure and conduct analyses based on secondary data and interviews with experts to ensure the validity of this research.We found that the companies choose to cooperate with partner companies with complementary resources. They will evaluate collaborative strategies based on comparative efficiencies between using internal competence and leveraging external capabilities. Different competence and market positionings then define differential collaborative strategies. We studied Taiwan dometic pharmaceutical company called China Chimical pharmaceutical company(CCPC) suggest that Taiwanese pharmaceutical companies base on their corporate positioning and core competencies to define their growth strategies. Because of they do not have competitive core competencies in this field, CCPC should aquire small biopharmaceutical research company to strength their competiveness in pharmaceutical industries. Biologic products will play an important role in the pharmaceutical industry. We expect that corporate manager develop biopharmaceutical strategies to maintain the company''s growth momentum and the competitiveness of enterprises.
Subjects
Biopharmaceutical
Merge and Acquicision
Stragic Alliance
Joint Venture
Type
thesis
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