The Varieties Of Choice For Pharmaceutical Companies And Resource Matching Analysis

Product decision-makings are very important for pharmaceutical manufacturers which are also difficulties to manufacturers. In practice, how to choose the most suitable drug according to the own conditions of manufacturers has become an important issue for pharmaceutical manufacturers. Currently, the choices of drugs for academic research, almost all are on Pharmacology, and literatures from the perspective of economic are little. From the existing literature on the choice of new products, many scholars use sophisticated mathematical models for the evaluation of new products, which reduced the utility, and did not consider the special nature of drugs.According to the economic characteristics of drugs, market demand and profitability of drugs are the two most important factors. Market demand depends on the numbers of patients, disease morbidity, treatment and medicine usage. Profitability depends on the technology of drugs, scarce resources of the pharmaceutical production, the advanced technology and costs. Market demand and unit profitability as the two coordinates will divide drugs into four types, namely market demand and unit profitability powerful drugs, market demand and unit profitability weak drugs, market demand little and unit profitability strong drugs, market demand large and unit profitability weak drugs. Analysis shows that enterprises should be based on their own resources to choose new drugs. According to the core competence, enterprises can be divided into four types. Studies have shown that enterprises should be based on their own characteristics to choose different types of drugs, the matching relations are that enterprise which has strong marketing capabilities and weak R&D capabilities should select a larger market demand, weak unit profitability drug; enterprise which has strong R&D capability but weak in marketing should select a little market demand, strong unit profitability drug. To the outstanding pharmaceutical manufacturers whose development of innovative capacity and the ability to open up markets are all strong, large market demand and unit strong profitability drug is the best choice.