Refocusing on R&D model or redefining marketing strategy? Anticipating sustainability for generic pharmaceutical industry

Claude Le Pen and Fereshteh Barei
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Claude Le Pen: LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique
Fereshteh Barei: LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique

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Abstract: The repercussions of product innovation crisis in big pharma drive the generic pharmaceutical industry to lower its dependence on original pharmaceutical industry. Moreover, an important change is happening in the classic model of R&D in pharmaceutical industry. How is generic industry coping with this evolution? This study aims to understand how generic firms orchestrate and promote innovation strategy in product portfolio, while ensuring the value creation for a sustainable presence on the market. A qualitative research methodology consisting of a literature review and several in-depth interviews with senior managers working in both the technological and business development areas were realized between 2011 and 2013. The results were analyzed by using Nvivo10 software. Our results show that switching to more investment in R&D is becoming a new marketing strategy in generic pharmaceutical industry. New organizational design of low risk innovation is emerging in the strategies of R&D model, the change is observed in: (1) form of the R&D organization, and (2) the tools for R&D, all aiming to capture the entire markets rather than following them. The classic product vision in generic pharmaceutical industry is evolving toward a new phase with regard to emerging marketing challenges and the demand for low risk innovation models. This implies using new technology platforms in drug delivery, to preserve a competing and sustainable market share.

Keywords: R&D; Pharmaceutical Industry; Generic medicines; innovation (search for similar items in EconPapers)
Date: 2014
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Published in Journal of Medical Marketing, 2014, 14 (2-3), ⟨10.1177/1745790414556563⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01507479

DOI: 10.1177/1745790414556563

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