Paper
Journal of Generic Medicines (2003) 1, 6–12; doi:10.1057/palgrave.jgm.4940012
Papers: The generics R&D challenge: Seeking the elusive profit margin
Neal Hansen and Paul Tunnah
Datamonitor, Charles House, 108–110 Finchley Road, London NW3 5JJ, UK, Tel: +44 (0)20 7675 7459, Fax: +44 (0)20 7675 7500, Email: nhansen@datamonitor.com
Revised 25 June 2003.
Abstract
Low profit margins and limited innovation characterise the outsider's opinion of the generics industry. This paper compares the profitability of the major generics players with the R&D-based pharmaceutical companies, demonstrating how differentiation in generic drug portfolio management strategies is closing the gap. By focusing on the optimum company attributes associated with each strategy and case study analysis, this paper identifies how best to align top-line portfolio management strategies with sustainable profitability.
Keywords:
profit margin, portfolio management, R&D, super-generics, biogenerics, company strategy
