The first strategic issue that faces the firm lies at the very root of pharmaceuticals, the decision to be either an innovative or generic pharmaceutical company. Thus…
Enabling mighty competition between commonplace drug treatments and patent-expired fashioned brands is relevant to decreasing pharmaceutical charges and stimulating innovation. However, this mentioned, there are numerous troubling problems surrounding general medicines because of the convenient access to an abundance of illegal generics on the internet breaking the patent ownership and the unregulated companies that produce and supply them. At the same time familiar medicines will have to be approved identical types of depended on drugs, providing the equal fine, safety and efficacy because the normal, that is commonly no longer the case. A conventional drug must endure strict scrutiny before it is licensed and given market approval with the aid of countrywide medicines authorities. In brief, common medicines will have to comply with the same strict standards of great, safety and efficacy as usual pharmaceutical…
Specific aspects of the Healthcare Reform Act also posed serious threat to Genentech 's business model. The passage of the Biologics Price Competition and Innovation Act allowed for a shortened approval pathway for biogeneric drugs, which would have a significant impact on Genentech, because of the significant costs associated with product development and testing in the industry.…
In 1984, the Hatch-Waxman Act gave generic drug companies greater access to the market for prescription drugs and gave innovator companies greater patent life for branded products. The patent gives a company the sole right to sell the drug while the patent is in effect. When patents or other periods of exclusivity expire, manufacturers can apply to the Food and Drug Administration (FDA) to sell generic versions of the…
Prescription drugs whose patents have expired are highly elastic; however, prescription drugs whose patents still exist are highly inelastic. Many consumers will substitute generic brands for drugs that have had their patents expire. These generic drugs can be produced at a much lower cost and yet still contain the active ingredients and FDA approval to their brand name equivalent. As a result, supply increases along with demand and puts downward pressure on price. Because there are no substitutes for patented drugs, consumers have no choice but to pay the higher prices determined by supply and demand…
The U.S. market is the world’s largest free-pricing market for pharmaceuticals and has a favorable patent and…
The generic drug industry covers the marketing and sale of medication containing the same active ingredients and dosages as brand-name drugs manufactured by the pharmaceutical industry. Drugs can be prescribed under their chemical name without specifying a particular pharmaceutical brand or company. A key benefit of generic drugs is that they usually cost a fraction of the price of brand-name drugs. In this context, our company (consulting) is planning to open a franchise of pharmacies that will exclusively provide generic medicines to the customers. We have two investors that have different approaches for the business.…
The market is rapidly growing and changing, forcing competitors to always find new ways to get competitive advantages over the others.…
References: Bodoni, S. (2011, October 21). Johnson & Johnson, Novartis Face Antitrust Probe on Generics. Retrieved November 17, 2012, from Bloomberg Business Week: http://www.businessweek.com/news/2011-10-21/johnson-johnson-novartis-face-antitrust-probe-on-generics.html…
Sauer, C., & Sauer, R. M. (2007, October). Is It Possible to Have Cheaper Drugs and Preserve the Incentive to Innovate? The Benefits of Privatizing the Drug Approval Process. Journal of Technology Transfer, 32(5), 509-524. doi:http://dx.doi.org/10.1007/s10961-007-9036-0…
Varol, N., Costa-Font, J., and McGuire, A. (2012). Does Adoption of Pharmaceutical Innovation Respond to Changes in the Regulatory Environment? In Applied Economic Perspectives and Policy. Retrieved November 3,…
4. Does Pfizer need to change the structure of its organization? If so, what changes are…
The popular brand name versus the generic battle is a concern in the prescription medicine industry. The uses of brand name drugs have decreased to 20% of total distribution. The expiration of patents of drugs, led to the decrease in brand name distribution. This affects the health care industry in an intense way. This multi-billion dollar industry is affected and patients and physicians must choose whether the generic brand will suffice. Choices by consumer are affected because the cost…
1. How does Genzyme’s focus on orphan drugs affect the degree of competition it faces? How does it affect the bargaining power of customers?…
So many medicines protect by patent law, all competitors can make countertrend drugs who have almost some quality…