Correspondence: Christina Raasch, Institute for Technology and Innovation Management Hamburg Technical University Schwarzenbergstrae 95 21073 Hamburg, Germany. Tel: +49 40 42878 3951; Fax: +49 40 42878 2867; e-mail: raasch@tu-harburg.de Web: www.tu-harburg.de/tim

¹is a post-doc researcher at Hamburg Technical University, Germany. She completed her studies in economics and management at St. Gallen University, Switzerland, and Oxford University, UK, and received her PhD at Nürnberg University, Germany. Her PhD thesis provides an in-depth analysis of patent expiration strategies and includes four case studies. Her overall research focus lies in technology and innovation management. Prior to becoming a full-time researcher, she worked for ZS Associates, an international pharmaceutical consultancy.

Received 10 December 2007; Revised 10 December 2007; Published online 1 February 2008.

Abstract

The expiration of patent protection and the subsequent sharp decline in sales have become a crucial topic for many pharmaceutical companies in recent years. The effort invested in designing strategies to cushion the adverse effects of patent expiry has increased considerably. One strategy, the launch of a second brand with a lower price, is frequently discussed as a potentially promising new option but has rarely been implemented. This contribution focuses on this fighter-brand strategy, its strengths and weaknesses and compares it to other pricing strategies. Moreover, it provides a detailed analysis of a major case example where a fighter brand was launched, the patent expiry of Zocor in Germany.