The emergence of the pharmaceutical industry in the developing world and its implications for multinational enterprise strategies

The emergence of the pharmaceutical industry in the developing world and its implications for... Purpose – The purpose of this paper, focusing mainly on India – and a lesser extent on China – is to examine, broadly, two related issues concerning the rise of pharmaceutical industry in the emerging economies: the strategic response of the emerging‐country pharmaceutical firms to the new patent regime that recognizes and enforces product patents; and its implications for multinational enterprise (MNE) strategies. Design/methodology/approach – The paper is based on extensive review of the relevant conceptual and empirical literature and secondary data. Findings – The strategic response of pharmaceutical firms in the emerging economies (India and China, for example,) to the new patent regime is to develop multiple competencies and position themselves to simultaneously compete and collaborate globally with the MNEs – large firms rapidly moving towards discovery and development of new drugs, and medium and small firms engaged in the production of off‐patent generics and contract manufacturing, respectively. Practical implications – The trend towards greater collaboration between the emerging‐country firms and the MNEs in the new patent regime raises serious concern about prescription drug prices in the developing as well as developed countries. Given the importance of the pharma industry to the health of nations , firms in rich and poor countries alike will continue to come under public pressure to develop and market the needed drugs at affordable prices. Originality/value – The paper would be of value to practitioners and scholars interested in the implications – for MNE pricing, outsourcing and R&D strategies, for example – of the rapid rise of pharmaceutical industry in the developing countries such as India and China. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Pharmaceutical and Healthcare Marketing Emerald Publishing

The emergence of the pharmaceutical industry in the developing world and its implications for multinational enterprise strategies

Loading next page...
 
/lp/emerald-publishing/the-emergence-of-the-pharmaceutical-industry-in-the-developing-world-Saw95goYG0
Publisher
Emerald Publishing
Copyright
Copyright © 2008 Emerald Group Publishing Limited. All rights reserved.
ISSN
1750-6123
DOI
10.1108/17506120810887907
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this paper, focusing mainly on India – and a lesser extent on China – is to examine, broadly, two related issues concerning the rise of pharmaceutical industry in the emerging economies: the strategic response of the emerging‐country pharmaceutical firms to the new patent regime that recognizes and enforces product patents; and its implications for multinational enterprise (MNE) strategies. Design/methodology/approach – The paper is based on extensive review of the relevant conceptual and empirical literature and secondary data. Findings – The strategic response of pharmaceutical firms in the emerging economies (India and China, for example,) to the new patent regime is to develop multiple competencies and position themselves to simultaneously compete and collaborate globally with the MNEs – large firms rapidly moving towards discovery and development of new drugs, and medium and small firms engaged in the production of off‐patent generics and contract manufacturing, respectively. Practical implications – The trend towards greater collaboration between the emerging‐country firms and the MNEs in the new patent regime raises serious concern about prescription drug prices in the developing as well as developed countries. Given the importance of the pharma industry to the health of nations , firms in rich and poor countries alike will continue to come under public pressure to develop and market the needed drugs at affordable prices. Originality/value – The paper would be of value to practitioners and scholars interested in the implications – for MNE pricing, outsourcing and R&D strategies, for example – of the rapid rise of pharmaceutical industry in the developing countries such as India and China.

Journal

International Journal of Pharmaceutical and Healthcare MarketingEmerald Publishing

Published: Jun 27, 2008

Keywords: Developing countries; Pharmaceuticals industry; Multinational companies; Patents; Intellectual property; India

References

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Search

Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly

Organize

Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.

Access

Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve

Freelancer

DeepDyve

Pro

Price

FREE

$49/month
$360/year

Save searches from
Google Scholar,
PubMed

Create folders to
organize your research

Export folders, citations

Read DeepDyve articles

Abstract access only

Unlimited access to over
18 million full-text articles

Print

20 pages / month

PDF Discount

20% off