Dendreon Corporation: Strategies for International Growth

2979 Words Oct 16th, 2011 12 Pages
Dendreon Corporation: Strategies for International Growth

Amy R. Herl

Chadron State College

Executive Summary

Dendreon Corporation faces tremendous potential with expansion into the Chinese market. The company is positioned for great expansion, just having received it Food and Drug Administration approval for its first drug, Provenge. The drug has wide-spread potential in the Chinese market that promises increasing life expectancy, rapidly growing disposable incomes, improving healthcare infrastructure, and evolving patent protection. When the possibility of a strategic alliance with the only pharmaceutical company currently based in Asia, Takeda, is considered, the potential for success in the Chinese market is even more
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In the following sections I will discuss my thoughts for how the company can achieve long-term success by targeting a new international market and by pursuing partnerships with other pharmaceutical companies to ensure that when the Provenge patent expires, the company is positioned for FDA approval of additional patented drugs, as well as continued international presence.

Industry indicators for international expansion

While the United States has long been the primary market for prescription drugs, many indicators point toward increasing prescription drug demand in international markets, especially in developing countries. While pharmaceutical sales in developing countries have historically been much lower than they are in the United States and Europe, in recent years they have been growing at much faster rates than in the developed world. For example, sales in China in 2004 grew 26 percent, followed by Thailand at 16 percent, and Egypt at 15 percent (Davidson, & Greblov, 2005). In 2006, emerging markets continued to present this trend, growing at 81 percent over the previous year. As demonstrated in figure 1, the global pharmaceutical market is forecasted to grow to $929 billion in 2012, representing an equivalent compound annual growth rate of 5.5 percent over each of the five years preceding 2012 ("Indian pharmaceutical industry,").

Figure 1: Growth of global pharmaceutical market from 2007-2012.

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