Case Study for GlaxoSmithKline Rush for Branded Generic Markets
Case Study: ‘GlaxoSmithKline’s Rush for Branded Generic Markets: Will it be a Success?’
In your main case study analysis, report and presentation, please address the following questions:
Discuss the changing dynamics and various challenges faced by the global pharmaceutical industry.
“The primary growth driver of the generic market was the regular patent expirations Of blockbuster drugs. Also it had been the rising healthcare expenditure and growing pressure from the governments across the world to provide low cost alternatives to branded drugs that contributed to an expansion of the generic drugs demand. It was in the late 1990s, that generic drug companies got introduced in the Pharma industry.” (Para I of the section: “Pharma Market: Generic Vs Patented Drugs”, of the cases study). Analyse the reasons for increased demand for branded generics more than patented drugs, especially in emerging markets.
„ company (GSK) strategy of focusing on high-cost patented drugs which had higher margins than generics but suffered when patents expired.” (Para 9 of the section : “GSK’s Foray into Branded Generics”, of the case study). Give a Brief overview of GSK’s existing business strategy.
To tackle the growing threat of generics, GSK took a bold step on July 23rd 2008 to enter the emerging market by teaming up with South Africa’s Aspen, a major supplier of branded and generic pharmaceutical drugs.” (Para 9 of the section: “GSK’s Foray into Branded Generics”, of the case study). Analyse GSK’s alliance deal with Aspen and discuss its rationale behind its foray into generic drugs in emerging markets.
“GSK took a breakthrough entry into emerging market for branded generics but it was still faced by a lot of challenges. Though Witty had set out three new strategic priorities that aimed to increase growth, reduce risk and improve GSK’s long term financial performance. GSK could face tough competition in emerging market for its branded generics. The major challenges flaunted by emerging markets were intellectual property (IP) exposure and drug pricing controls.” (Para 2 of the section: “Challenges” of the case study). Analyse (preferably using Porter’s Model) the challenges for GSK’s generic drugs emerging markets.
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