Challenges Posed by Global Strategy in Pharmaceutical Industry

There are multiple health concerns worldwide and more and more drugs are needed every day. Many drugs however, are extremely expensive to develop, test, and produce. According to the Tufts Center for the Study of Drug Development (2002), it costs up to $802 million to bring a new drug to the market. In 2002, pharmaceutical companies spent $34 billion in research and development (Center-Watch, 2003). In addition to the costs, the overall time from the discovery to approve and market the drug can take up to 15 years.

Biotech firms had the capabilities to alter the structures adopted by large firms. Bayern acquired those skills while GSK chased the challenge, creating the beneficial characteristics of small biotech by reviewing the existing capabilities of

One primary goal of Pfizer is to deliver sustained, excellent product by outperforming Pfizer’s competitors and must differentiate itself adequately from its competitors. Competitive advantage is central to strategic management in that it will produce and sustain superior performance. To be competitive in a business environment, often it requires the company to have a product or service different and better than other organizations competing in the same marketplace. According to Wadman (2007) “Pfizer and the rest of the pharmaceutical industry need to develop more sophisticated drugs, targeted at a smaller number of people more quickly, efficiently and at a lower cost” (p. 1). Once Pfizer’s strengths, weaknesses, opportunities, and threats are assessed and analyzed, managers must decide a set of strategies to reduce or eliminate its weaknesses and capitalize on its strengths and maximize opportunities. An example is Porter’s three generic strategy approaches of differentiation, cost leadership, and focus strategy by using differentiation strategies to differentiate Pfizer from its competitors. Strategies are essential; however, it is useless unless they are effectively implemented levels of the company. Business-level strategies are typically developed and implemented by heads of business units and are first approved by top management. The functional level strategy is the last level that focuses on developing strategies for managing the various departments to

On the other hand, America is obviously superior to Japan in the area of drug development. Biotechnology is thought to have been developed rapidly. Creating new method of treating and medicines are very important also in Japan. Comparing funds between Japanese companies and American ones, Japanese companies apparently do not have an abundance of funds. Therefore, funds of fundamental research are insufficient. I want to solve this problem. Biology is my favorite subject. Moreover, what I learn in the department of biology in America will give me many opportunities to find a job. That’s why I decided to go abroad and major in biology. In the future, I am going to start a business to import and export medicines and medical instruments between America and Japan. I study hard to promote an advance in medical technology 10 years later. This goal is my core forming current

Durand's experience at TAP pharmaceuticals is not as unusual as one might estimate, but the magnitude and scope of the problem is not common. The pharmaceutical sector is driven by high research and development costs, and the underlying dilemma of expiring patents and unrelenting competition plays heavy on the sales and marketing teams. Two parallel races are continuously run: Recouping research and development costs of pharmaceuticals which can be astronomical and selling as much product at a premium as quickly as possible. The stakes are high and temptation is ubiquitous. Some companies, like TAP pharmaceutical, give in to their baser instincts the outcomes of which are well compensated and highly regarded in society: profit!

Global pharmaceuticals had presence in India since early 80’s and it was not until 1993 that Eli Lilly International decided to establish a Joint Venture with India’s second largest laboratory and exporter, Ranbaxy. This move happened in a very challenging context as both companies have very different profiles and backgrounds. The main differential characteristic was the nature of their products. While Ranbaxy was focused on generics and in other intermediate products, Eli Lilly International core business was the commercialization and development of new drugs through an aggressive R&D strategy. The trigger for Eli

In order to decide on the R&D portfolio, an objective quantitative analysis might not be suitable considering the high levels of uncertainities and consequently the risks involved in pharmaceutical research projects. It is important to have a qualitative analysis of the situation as a whole that includes Vertex’s own financial position, strategic implications, a quantitative analysis of its Portfolios with realistic estimations and a risk analysis of the portfolios.

1. Indust ry Overview The pharmaceutical industry of the world develops and markets medicines prescribed for patients by medical practitioners. The U.S., U.K and European pharmaceutical companies are the major ones of the industry. The total number of major pharmaceutical companies (annual revenues USD 1,000 million and above) worldwide The global pharmaceutical industry is estimated to be about 50. This report gives a brief end of 2010 with a growth rate of description on the global pharmaceutical market’s size, around 5 to 6 percent.

expected growth rate of 12.6%. Majority of pharmaceutical sales originate in the US, EU and

These investments take a key place in R&D and that reinforce the market situation of GSK. Investment in new medication is an opportunity, one should not focus on investing in classic medication.

However, this strategy is no longer ideal in line with increased competition (new drugs are often not “first in class” anymore) and costs associated with the more complex development (3). It has also been shown that almost 50% of all blockbuster drugs have been developed by companies with high presence in the same therapeutic area (1). This shows that companies have to narrow down their R&D scope.

India’s pharmaceutical market has been developing for many decades and represents value chain beginning from research and development and continuing with animal studies, clinical trials, approval and launch, manufacturing, marketing and distribution. Biocom had opportunities to take all the links of value chain to become the strongest market player and have full cycle production.

The drug revelation scientists utilize iconic cultural attributes to fixate on the health requisites of patients. [The department of 2100 scientists is to fortify the happenstance of transforming allied health care medicines. The intellectual design is to create a positive global commitment toward the practice of medicine] (Varney, 2016). The global focus is Business to Business (B2B) of the corporate Research and Early Development (gRED) sphere of oncology, immunology, and neuroscience division of infectious disease (Genentech, Inc., 2016). Chatman (2014) “the largest divisions is Immunology and Ophthalmology (GIO); 54 attributes rolled up to courageous, focus on people, team focus, drive for results, integrity, conflict oriented, intensity, relaxed, detail oriented, transparency, patient oriented, decisive, and stable,” (p. 113, 118). Consequently, the result engenders extensive medical research through innovative techniques to maintain the competitive parameters of the principal centers of trade.

The threat of new entrants into the pharmaceutical industry is very low because of the high costs required to enter the industry, which means their profit is high. Even though the economies of scale for production may not be very significant, but other barriers to entry are high. It takes firms 12 to 15 years, and over 800 million in R&D expense to successfully develop new drugs and it takes a lot of follow-up costs and time to be approved for patient use (Cavusgil, Knight, & Riesenberger, 2008). Along with high R&D costs, the heavy regulation of the pharmaceutical industry is another barrier to entry. All drugs and chemicals used need to be approved by the Food and Drug Administration (FDA), and when the drugs are not approved the time and money used to develop them is lost by the firm.

India is a massive country known as a leader in cultural diversity, and also has the second largest population in the world. India has been opening its business environment to welcome foreign investors as well as foreign companies. The pharmaceutical industry in India has become one of the most attractive investment places in the world, which is estimated to be worth US$20 billion, and expected to grow over about 15 percent per annum (IBEF, 2016). Moreover, the country ranks very high in the third world, regarding technology, quality and range of medicines manufactured, as stated in the book written by NPCS Board (2013). Therefore, in order to start a pharmaceutical business and be successful in India, we will analyze the Indian business environment before completing the business plans and strategies.