A by providing new knowledge to create long-term survival

A
solution to the issues of finance which pharmaceutical companies are facing, can
be identified by Fluck and Lynch (1999), could revive a pharmaceutical company
by providing new knowledge to create long-term survival (Vermeulan &
Bakerma., 2001) as well as achieving synergy (Vaara., 2002). Johnson (2011)
mentions in the article ‘Pfizer’s
Lipitor: The Blockbuster Drug That Almost Wasn’t’ how Pfizer lowered the
price of Lipitor below rival drugs to increase product longevity.

Rao
(2012) identified that it is empirical for a pharmaceutical company to identify
for new drivers of promoting and developing their products. He suggested that
while companies are striving to gain the efficiencies as how products are
discovered, developed, and marketed to replenish the productivity during patent
cliff, opportunities exist for pharmaceutical companies in redefining the
promotional tools to increase their revenues. He also identified several key drivers
of promotional tools such as suggesting the promotion of product portfolios serves
as improving awareness, increasing the rate of treatment, facilitating patient
needs, improving communication between physicians and patients, and positive
impacts on the behaviours of patients towards branded products which eventually
reduce the possible losses in revenue during the patent cliff. This has been
seen in the case of Pfizer and their cholesterol lowering drug Lipitor, where
Pfizer were offering patients insurance plans and discounts and monthly co-payment
cards giving patients $4/month if they stay on Lipitor after the patent
expiration. Pfizer also understood that because of the exclusivity of Lipitor
going off patent in the US, the product is still in force in emerging markets
such as in China, where Pfizer are still heavily promoting Lipitor (Johnson A.,
2011). Johnson (2011) further goes into how Pfizer used the promotional tool of
visiting family doctors as well as cardiologists, showing data that Lipitor was
the best product at lowering cholesterol.

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Stiglitz
& Jayadev (2010) go onto identifying that promotional tools and marketing efforts
play a significant role in influencing the revenues of pharmaceutical companies
by promoting over their products that are about to go off patent, publicly
funding clinical trials to reduce conflicted interest while reducing costs in
branded medicines, and directing innovation towards social benefits by adopting
to new forms of value-based pricing and actively managing new technology to
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