Research On The Strategy Of Getting Out Of Trouble After The Original Drug Patent Expires

Medicines are special commodities,they have the economic characteristics of the general commodities market,while also be affected by the macro-control policies by the state.There is a life-and-death moment in the pharmaceutical industry called patent cliffs.When the patent protection of a drug(patent drug)expires,the sales and profits are as sharp as the jump from the cliff.Market research firm Data-monitor shows that a large number of generic drugs flooded into the market,in the six months,the price will usually drop to about 20%of the patented drugs,while the sales of patented drugs will drop by 70%.In the history of the pharmaceutical industry,few patented drugs can resist the competition of generic drugs,so most of pharmaceutical companies choose to abandon this market,and even rarely choose to cut prices,but use more energy to develop new products.However,in recent years,pharmaceutical companies with research and development as their business model have been hit by an unprecedented impact:on the one hand,the emptiness of their own follow-up product lines,the reason is that the new molecular entities are gradually depleted,and the research and development efficiency and the cost of new product development are decreasing year by year.On the other hand,the sales environment in China's medical reform is becoming increasingly severe.Under such circumstances,various strategies of Lifecycle Management(LCM)are fully utilized to break through the difficulties of the patent period and optimize the life of existing patented drugs.The cycle is crucial.This study takes the market dilemma of the original research drug after the patent period as the research object,and analyzes it through two methods:literature combing and case study.Many of the difficulties faced by the original research drugs are mainly reflected in the pressure of drug replacement,the market competition pressure of drug prices after the expiration of the original drug patents,the low price dumping of generic drugs,resulting in the decline of the sales of the original drug,and the marketing limitations of multinational pharmaceutical companies.Sex.Looking back at the drug life cycle of patented drugs in recent years,it is not difficult to find that successful brands have a complete patent system network,and at the same time have an effective drug life cycle management strategy.At the same time,there are many similar laws for patented drugs with short life cycles:First,due to lack of products and market improvement,the product itself has gradually lost its vitality in the wave of renewal and eventually exited the market.Second,the medical environment and the pharmaceutical market have undergone tremendous changes.There may be many management errors in the longterm management of products and marketing strategies,especially when the patents expire,without detailed and detailed coping strategies,so that the original research drugs can't compete.The research in this paper finds that drug life cycle management has important strategic value for enterprises.The length of drug life cycle depends to a large extent on the company's choice of life cycle management strategy.Enterprises can implement different strategies in a timely manner and thus increase Sales and profits,gain competitive advantage and expand market share.Through Lipitor's in-depth analysis of the case of drug life cycle management of generic products,this paper proposes a series of strategies for the removal of the original drug after the patent period.For example,after the patent period,the original drug can be re-priced,regional expansion and optimization,the project The organic integration strategy of portfolio management extends the life cycle of the original drug and maximizes the use of brand value.Finally,this paper combines the different stages of the drug life cycle to make recommendations on how to ensure the success of the drug life cycle management key factors,organizational structure and system.