Strategic Marketing Analysis for Patent Expiry Pharmaceutical Company- The Case of A Company
Date Issued
2015
Date
2015
Author(s)
Lee, Kun-Ju
Abstract
In the pharmaceutical industry, it is not unusual to see the drugs go off-patent and become generic drugs. When the top selling drugs go off-patent within a short period of time, a serious issue called “patent cliff” arises opening opportunities for generic drug manufacturers. The major problem for branded drugs going off-patent is the fierce competition with generic drugs that may lead to the “price war” and rapid sales erosion, this is so called the “patent cliff”. The brand-name drug companies are at risk of losing billions in sales due to the patent cliff in the recent years as several blockbuster drugs will lose patent. Upon patent expiry, lower priced generic drugs may reduce the revenue for the brand-name drugs by as much as 90%. Therefore, pharmaceutical companies should start to plan for patent expiry as early as possible to cope with the coming of patent expiry of products. Case drug, one of the most blockbuster products in the case company, is going off-patent in 2015 in US. In the recent years, the case product has contributed more than 1.4 billion sales for the case company; furthermore, it has maintained the market leader position among all the hepatitis B drugs in the market. The strategic marketing is to identify of one or more sustainable competitive advantages a firm has in the markets it serves, and allocation of resources to exploit them. In order to study how a pharmaceutical company manages its strategies to face the issue of patent expiry, this case study firstly use strategic marketing analysis of the macro-environment and micro-environment factors that influence the strategic decision of the case company, then compare the strengthens and weaknesses of the case drug among all the hepatitis B drugs to better understand the competitive advantages of the case product. After the analysis of the external and internal situation of the case company, the strategic marketing of the case company has been examined to see how does the case company adjust its marketing strategies in the environment of National Health Insurance in Taiwan. Finally, the conclusion and suggestion of the marketing strategies that can be applied to deal with the patent expiry in Taiwan will be provided for the pharmaceutical companies in the similar scenario. These strategies include leverage the brand equity, enhance the customer loyalty, accelerate innovation development and defend the patent. The goal of this study is to create a theoretical and practical framework for the strategy planning for the pharmaceutical companies.
Subjects
Strategic Marketing
Patent Expiry
Brand Name Drug
SLEPT
Patent Cliff
SDGs
Type
thesis
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ntu-104-R02749001-1.pdf
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