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Pharmaceutical industry global strategy
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In 2007, pharmaceutical company Mylan acquired Merck and their multibillion dollar generics business under CEO Robert Coury. Coury immediately appointed one of his top executives, Heather Bresch, to integrate the new products into the company’s pipeline. Bresch became Mylan’s COO later that year and decided to focus primarily on the Epipen, a spring-loaded syringe device created to deliver an exact dose of epinephrine, a severe allergy life-saving drug which immediately reverses life-threatening reactions to bee stings, peanuts, and other allergens. Ms. Bresch is considered to be an insider in the pharmaceutical industry. Her father is a United States senator and she runs of the biggest generic drug companies in the world. She also oversees the Generic Pharmaceutical Association, an industry’s lobbying group. Running public awareness campaigns and releasing several press releases on the dangers of anaphylactic shock in children; the company’s lobbyists pressed for legislation to make available Epipen devices mandatory at schools. At the same time, significantly due to Bresch’s …show more content…
Particularly in the pharmaceutical industry in which companies are given patents for products and have to profit as much as possible before the end of such. This fact, under Nozick’s views, is considered ethical even if companies are sharply increasing prices from one day to another for a life-saving drug. Ms. Bresch is not hiding the fact that her company is a for-profit and that it has to create revenue. In a CNBC interview on August 25, 2016, the interviewer asked her that “given the firestorm that surround us (in the media), are the price hikes for Mylan done?”. Ms. Bresch did not hesitate and calmly responded, “we’ll continue to run a business, and we are going to continue to meet the supply and demand of what’s out
Background: Merck & Co. is an American pharmaceutical company and one of the largest pharmaceutical companies in the world. In 1971 the United States approved the use of an MMR vaccine made by Merck, containing the Jeryl Lynn strain of mumps vaccine. In 1978 Merck introduced the MMR II, using a different strain of the rubella vaccine. In 1997 the FDA required Merck to conduct effectiveness testing of MMRII. Initially it was over 95%; to continue the license; Merck had to convince the FDA that the effectiveness stayed at a similar rate over the years.
Many businesses that achieve great success become greedy and want more. Pharmaceutical companies, such as Turing, have been overpricing life-saving
Main Issue In 2000, Rich Kender, Vice President of Financial Evaluation and Analysis at Merck & Company was discussing the opportunity of investing in licensing, manufacturing and marketing of Davanrik, a drug originally developed to treat depression by LAB Pharmaceuticals. LAB proposed to sell the rights of all the future profits made from the successful launch of Davanrik at the cost of an initial fee, royalty payments and additional payments as the drug completed each stage of the approval process. Merck & Company's organizational goal is to constantly refresh its drug development portfolio and reach as many customers as possible during the patented period. So there was not only the potential of financial gain or quantitative aspect of the offer, but also the qualitative value which will be added by getting better positioning in the risky pharmaceutical industry.
3Walker, Hugh: Market Power and Price levels in the Ethical Drug Industry; Indiana University Press, 1971, P 25.
An Analysis of GlaxoSmithKline The business that I have done research into is GlaxoSmithKline. This company is a globalised research-based pharmaceutical public limited company. Its ownership structure has changed a great deal since the original company was first established in 1715. Originally a pharmacy, the company has expanded, merged with and taken over other companies over the decades.
Wieczner mentions that “in its new statement, Mylan again pointed to pointed to health insurance trends “driven by the implementation of the Affordable Care Act” as the reason patients “have faced higher costs for their medicine” (n.pag.). Executives including Bresch of Mylan reference EpiPen as her baby, because this is Mylan’s first billion-dollar drug, that reach $1 billion in 2014 and 2015 sales (Wieczner n.pag.). When Mylan bought EpiPen as part of a negotiation with Merck in 2007, the drug had previously been on the market for almost twenty-five years and the drug’s original approval in the United States was in 1939, yet it was not that well-known back in that time (Wieczner n.pag.). Back then, in sales, EpiPen was earning less than $250 million (Wieczner n.pag.). Npw, forty-seven states have laws about forming epinephrine auto-injectors to be available in schools in case of a severe allergic reaction, mainly as a result of Bresch’s endeavors (Wieczner
One of the lawsuits is classifying the EpiPen as a generic drug versus a brand named drug. This allowed Mylan to have to only offer a 13 percent rebate off the manufacturing price, versus a 23 percent rebate for a brand named drug. The department of justice was able to pursue legal action against Mylan, resolving the case for a $465 million settlement and having Mylan reclassify the drug as branded. (source) Mylan also has two lawsuits against them regarding trying to remove competition and domination of the EpiPen market. They are accused of manipulating insurers to only use their product by offering them large rebates, as well as specifically telling insurers they would only give them large rebates if they would not reimburse patients who bought a rival product from a pharmaceutical company named Sanofi.
Discussion. Merck is a global research-driven pharmaceutical company that develops, manufactures, and markets a broad range of products. Merck has a history or producing successful products beyond the products mentioned above, including VioxxTM, FosamaxTM, and SingulairTM. Both sales and net income rose significantly from 1998 to 1999 with sales surging 22% to $32.7M and net income rising 12.2% to $5.9B in 1999. Short and long-term investments have risen in this period by 57% and 32%, respectively. The development of pharmaceuticals is a high cost business especially for R&D and the long FDA clinical approval process. The approval process can take 7 years, which leaves only a 10-year period of exclusivity within the 17-year patent life.
For the threat of substitute products, it is still very low due to the patents protection but in case of the expired patents, it is medium. A pharmaceutical company has lots of way to fight back against generic drugs such as obtaining patents on component chemicals, manufacturing methods, product extension/formula modifications or improving drug-delivery methods. Rivalry among existing firms is medium. Each pharmaceutical company has to fight in order to take an advantage of the first one who obtains patents. Moreover they are competing to bring their drugs to doctors' mind by hiring reps.
Pfizer is one of the largest pharmaceutical companies in the world, its headquarter locates in the US. Pfizer financial report of its fourth-quarter claim a 3% decline in sales diverted to $13.12 billion from Q4 2013 and recording a 4% decline in adjusted profit per share to $0.54 [35]. The challenges that Pfizer face can be generalized to an industrial challenge and the global economic environment challenge [29]. For intellectual rights, Pfizer products, including BeneFIX, ReFacto, Xyntha and Enbrel will have to compete biosimilars (also referred to as follow-on biologics) in the future just when competitors obtain marketing approval for biosimilars or when patent expiated [29]. There are other challenges that put Pfizer
This is the second of three reports I will complete as part of the strategic analysis of Pfizer. This report focuses on strategy analysis and includes the following sections. First, the major concepts related to generic, corporate and international strategies analysis will be defined. Second, those concepts will be applied to the case of Pfizer in order to analyze its strategies. The analysis of Pfizer will be followed by its evaluation to identify the major problem the company is facing and propose a solution that Pfizer can adopt. A short conclusion will close the report.
The case under analysis, Eli Lilly & Company, will be covering the positives and negatives with regards to the business situation and strategy of Eli Lilly. One of the major pharmaceutical and health care companies in its industry, Lilly focused its efforts on the areas of "drug research, development, and marketed to the following areas: neuroscience, endocrinology, oncology, cardiovascular disease, and women's health." Having made a strong comeback in the 1990's due to its remarkably successful antidepressant Prozac, was now facing a potential loss in profits with its patent soon to expire. The problem was not only the soon to expire patent on Prozac, but the fact that Prozac accounted for as much as 30% of total revenue was the reality Eli Lilly now faced. (Pearce & Robinson, 34-1)
GlaxoSmithKline(GSK) is a British pharmaceutical company headquartered in London, and also one of the leading drug manufacturing companies in the world. It is known for developing drugs and medicines for treating major diseases like cancer, diabetes, asthma, digestive diseases and mental health etc. It has around ten thousand employees worldwide. It has been developing its pharmaceutical business rapidly all over the world. China has been one of the main focus developing target market during the past years. Although GSK has made a huge success in making profit in entering the China market,
When Shkreli pointed out that it was not profitable for the company to sell the drug at $13.50 a pill, it is clear that he had no intention in being socially responsible. Even though the Martin Shkreli claimed to the press that their plans were to “launch an educational effort to help raise awareness and improve diagnosis for patients with toxoplasmosis” (IPWatchdog.com) there were no later actions. By failing meet the legal, ethical, economic and voluntary responsibilities placed on this company by their stakeholders, Turing Pharmaceuticals failed to meet the commitment of corporate
Also, guarding the broadband router is crucial for home users. Default password of the router should be replaced by a more complicated password. At the same time, the password should not be too short or the words included in a dictionary otherwise it will be easily broken by the dictionary attack and the preferred DNS server may be changed to the poisoned DNS server that under the control of attacker. A strong password can ensure the security of the router and the users can stay away from Pharming attack.