Novarts-Apple Analysis

1. The HBS case notes that Novartis generic wine drugs business is growing more speedily than its branded pharmaceutical business. What explains that pattern, and how do the differing growth rates of the generic and branded segments affect Novartis global strategy rolling send? The current status of the drug industry is such that generics be growing while branded pharmaceuticals are not. There are a number of pointors that have led to the current situation. mannikin 1 outlines the drug development process and the amount of sentence that it takes to develop 1 drug. pharmaceutical companies are faced with a process that could take 12-16 years to develop a late drug. Companies could go through 10,000 drugs before accomplishting 1 that they stomach release to the market. Additionally, the FDA has increased scrutiny for approving drugs. The number of sanctioned drugs has been decreasing the last few years, going from 30-40/year to 15-20. Furthermore, Pharmaceutical companies rely on having a strong pipeline of drugs to release. Unfortunately, galore(postnominal) of the top companies have powerless pipelines. This means that they do not have a lot of drugs that are in the unlike development stages shown in figure 1.

What this all means is that without a lot of new drugs coming on the market and companies having weak pipelines, it is expected that generics will continue to grow. It is a combination of a decrease in the number of drugs being released as hygienic as a number of top drugs coming finish up of patent. Once a drug comes off of patent a generic form is available almost immediately and in an effort to save money many consumers will tell apart the generic form over the brand name. In fact in 2005 when three big drugs came off of patent, 87 pct of their prescriptions switched to generics within one month. (Ghemawat, 2007) Generics have become big business. spell much of the success of generics is due to drugs coming off of patents, extra success coming in the form of administrative... If you want to get a full essay, order it on our website: Orderessay

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