GENERIC STRATEGY

Presented By: UMESH KUMAR

MARLYIN MATHEW
SARTHAK GUPTA
SHASHANK JAISWAL
SHUBAM GROOVER
ABHISHEK CHATLA
VARUN KAPOOR

(Group4)(Section-A)

GENERIC STARTERGY: FOCUS STRATERGY

Based on a Differentiation base.
Makes generic as well as specialized drugs
Generic drugs generated revenue of about $5 billion in 2013
Currently not doing well in generic drug sector
Sold part of generic drug division Mylan , help the company exit the
low-margin, low-growth generic drug market in developed regions
focus on the high-growth opportunity in emerging markets such
as China, India and Latin America.

 Chile-based Pharma company CFR Pharmaceuticals is in line with

its plans to get back to sales growth in the generic drug business
Abbott stated the acquisition to double its branded generic drug
business in Latin America and establish the company among the
top 10 Pharma companies in the region.

They target certain segment of people and region and expand in

to the emerging markets(39%) and satisfy the needs of the
customer.
major income form drugs comes from specialized drugs, which
are focused on specific diseases
For Example The drug called Humira used for curing Rheumatoid
arthritis, is the worlds 3rd Largest selling drug product whose Sales
reached in 2013, $16 million. AndroGel, Synthroid.

But since this product have been running since a long time under a
patent, its patent expiration dates are approaching soon, e.g. in
case of humira, the patent expires on Dec 2016, they are focusing
to move onto the generic product range as mentioned earlier.

 But Abbott faces serious problems with its margins that it must
address. Companys gross margins are roughly 20% below the
average of its competitors, due to high costs of goods sold and
lower pricing power. Hence not a low cost strategy model.
It has a high focus on Pharmaceutical R&D and Technology as
it seeks to produce specialized drugs.
Marketing and Strategy plays a major role to promote generic
drugs.

GENERIC STARTERGY: DIFFERENTIATED STRATERGY

Increase in Net Profit from $8.2 billion in 2008 to $9.3 billion in
2013.

Extending lead in innovation: Science-based innovation is at the

heart of Novartis with differentiated medicines and treatments . They
started a biotechnology camp as a science based innovation.
Accelerating growth: Novartis is pursuing long-term growth by
maximizing product launches and leveraging its robust portfolio. Also by
expanding through acquisitions and mergers . Novartis merges with
company like Sandoz that is giving its identity of differentiated products
by Sandoz innovations and R & D for Novartis.
Driving productivity: Novartis is driving productivity by simplifying its
processes, accelerating cross-divisional collaboration, and improving
global procurement and supply chain management.
Novartis High performance relies on these factors
Commitment to people: They try to attract and retain the best talent in
the industry, nurture team diversity and cultivate high engagement.
Quality beyond compliance: They engage themselves producing
high-quality pharmaceutical and medical therapies that exceed industry
standards to protect patient safety and build trust with our stakeholders.

Corporate responsibility: We are committed to enhancing access to

medicines and healthcare services for underserved populations through
innovative patient support programs and Social Ventures.
Novel Drugs
Bio-similars: High-quality, clinically-proven alternatives to existing
biological medicines which offer comparable more safety at a more
affordable prices. No other drug maker provide these type of drugs in
the areas of Africa, Australia and most part of North America.
Injectable: Non-biologic drugs taken via injection, which include
affordable, state-of-the-art generic medicines. Sandoz has been the
global leader in terms of sales in injectable since 2011 because they
are considered as on of the most safest and effective of all.
In this challenging regulatory environment, company has created new
options to treat asthma and COPD (chronic obstructive pulmonary
disease). With a rich pipeline, Sandoz holds a strong global #5 position
in this area.

GENERIC STARTERGY: FOCUS STRATERGY

Focused strategy to enter Emerging Market.
China represents the largest opportunity and will form part of a
successful strategy to select the correct emerging markets to focus
on.
Partnerships allow effective entry to emerging markets and can be
used to grow existing business in new segments.
Pfizer relies on consumers who actually need (or may need) their
product.
For example, Pfizers Toviaz is a bladder control medication and its
advertisements will only be directed toward people with those bladder
issues leading to rapid response to customer requirements

MARKETING AND SALES

Tailored marketing to targeted customer segments maximizes
returns. In particular it is important to avoid pricing out mass markets.
Targeting promotions according to private, public or mixed
healthcare expenditures forms an essential part of effective sales
strategies which will vary by country.

REGULATION
Larger countries often have varying regional regulations and
segments, each of which requires a tailored approach.

 Pfizer promotes their product by the collaboration with the doctor as

they use the doctor to prescribe the statins.
The advantages for Pfizer as preferred and suggested by many
doctors are this product can be trusted and reliable to the consumer.
The other strategy is Pfizer channel distribution is direct to
consumer which can maintain the relationship between buyer and
seller.
Next for pricing strategy, Pfizer has increase the price of old drugs,
developing new drugs due to the losing in pattern protection.

The great marketing mix strategy used by the Pfizer drives them to
become worlds first US $10 billion a year drug.