Innovative marketing strategies afterpatent expiry
competition from generics) in favour of a
constraints of the key stakeholder (in this
considerable equity and can thus put up a
case, the French social security system’s
successful defence against generics. This is
goal of reducing the growth in antibiotic
little respect they generally have for their
implemented in 1996 is no longer valid.
introduced in 1999 shifted a significant
fantastic brands and on the value that they
generic. Most generics offer higher unit
have, inside and outside the company.
not gain if they were to reduce the price.
architecture (the relationship between the
companies are still learning how to brand
the total customer experience, that is, not
patent protection period. In exchange for
prescribing inertia and the establishment of
International Journal of Medical Marketing
# Henry Stewart Publications 1469–7025 (2004)
a mutually beneficial relationship with a
without cost, both real and opportunity.
peak sales value time gained for a patent
consistency of promotional material, brand
benefited from that resource. It is doubtful
that there was any financial advantage in
out licensing and cash cowing the residual
was an icon of its age. There was a strong
reinforced by the give-away sweets of the
branding, line extensions, process patents,
would take it and get better; the security
licensing deals all serve to slow down the
rate of decline of patent profits, but the
to get worse or to have significant side-
effects and lead to out of hours calls.
steps, through policies and penalties, to
Thousands of doctors did just that and the
drain on health budgets. Post-patent profit
protection strategies need to be in place
to prescribe, created a strong post-patent
long before patent expiration, the inhaler
loss position. Thus two of the main planks
for post patent loss survival were in place.
Only one, strong branding, survives as an
offer is not reproducible, or tactically in
remains an opportunistic strategy that is
today’s pharmaceutical environment.
that estimated further decline, the project
to highly focussed, low overhead, branded
Anthony J. Knightwas formerly Customer Marketing Director at Parke-Davis and is the founding partner of the Portland Partnership, a
pharmaceutical strategy consultancy. He can be contacted at [email protected]; URL: www.knightworld.com
Tony Booley writes:Pharmaceutical companies often do not
them when faced with a patent expiry.
factors such as the competitive situation
# Henry Stewart Publications 1469–7025 (2004)
International Journal of Medical Marketing
product could be licensed out to a generics
influences the relative attractiveness of a
competitive landscape at patent expiry is
very country specific due to the differing
expiry is a specialist area? There are also
will manage brands post patent expiry.
valuation of future cash flows. It may be
by generics, as brand revitalisation may be
possible later in the life cycle. Getting price
strategy depends very much on the pricing
need to constantly evaluate marketing risk
‘foster’ products to another company that
may be in a better position to gain price
increases. In countries such as the UK, it is
now very difficult to get price increases
that reduces the price selectively through
different deal structures. Examples would
‘equalisation’ deals with larger retail
branded prescription line is sold at brand
strategies such as those employed by Astra
prescriptions, but reimbursed at an agreed
market relatively quickly if developed by
still the best selling antibiotic in 1996.
project sufficient priority. A case can be
made for a partnership or out-licensing to
greater difficulty in containing healthcare
a speciality pharmaceutical company.
costs due to the local market structure.
The existence of primary care gatekeepers
and marketing generics requires different
skills and a different businesses model.
Therefore the possibility exists that the
generics only accounted for 2–3 per cent
International Journal of Medical Marketing
# Henry Stewart Publications 1469–7025 (2004)
considered principally to retain business in
appealing to French doctors’ ‘freedom of
rational and emotional marketing practices
competition, why did SB in 1996 or earlier
superior given the strong brand equity and
the emergence of speciality pharmaceutical
historical sales situation, which would have
strategic options for managing this phase
Tony Booleyis a board director of Alliance Pharmaceuticals and has 23 years’ experience in the pharmaceutical and healthcare industry
including posts at the multinationals Leo Pharma, Glaxo Wellcome and Getinge Industrier. He can be contacted at
[email protected]; URL: www.alliancepharma.co.uk
# Henry Stewart Publications 1469–7025 (2004)
International Journal of Medical Marketing
Bundle of Misery The Diagnosis for an Inconsolable Infant Might Be Reflux, Not Colic Kim Fernandez Special to The Washington Post August 27, 2002; Page F1 this year in the Archives of Pediatrics & Adolescent Medicine, GERD "is a common weeks later. If Joseph was awake and not disease of infancy, with a prevalence as high as 18 percent in [otherwise] healthy constantly, he was