Maximizing Profit in Pharmaceutical Sales
28 April 2013
In the realm of pharmaceutical drug sales, there are many players in the market. Many of these companies have a large inventory of drugs that they manufacture. The subdivision of the pharmaceutical market that draws the most revenue is oncology medications. Many companies will specialize in drugs for only one type of cancer, or sometimes with only one drug period. The cost of research and development in this field is much higher than any other disease subdivision. With many companies focusing on specific treatment plans there is a real opportunity to corner the market. The sale of oral medication is on the rise, by getting ahead of the generic sales of these oral agents, the company can establish itself at the forefront of contemporary cancer treatment. The following will point out ways to boost revenue, determine maximizing profit strategies, and creating barriers to establish this company as the leader in oncologic pharmaceutical sales. Oral Chemotherapy
Cancer is one of the leading contributors to death rates in the United States. The battle with cancer is often laced with numerous trips to the doctor’s office, the laboratory for blood work and the infusion center for intravenous treatment. The constant running around that these patients do adds a lot of unneeded stress on the patient and the patients’ family. Many of these patients would be much happier if they were able to receive their treatments at home. However, due to how volatile and dangerous some of the intravenous chemotherapy regimens can be, patients do not have that option to receive their medications at home with only one healthcare provider present for an emergency.
Recently many drug companies are attempting to create a better lifestyle treatment plan for their target patients. They are focusing on developing their IV chemotherapies into pills. This lets the patient receive their treatment with minimal serious side effects and creates a void in their busy schedules for rest or other personal interests. The patients who have been able to convert to oral chemotherapy regimens are reporting increased satisfaction to their physicians, and surprisingly the patients test results are showing the physicians that the oral chemotherapy is just as effective as the IV version. Plan of Action
Drug discovery is a patent appropriate market but only initially. The idea of making chemotherapy treatment more accessible, affordable and easier on the patient offers unlimited potential for any pharmaceutical company. To better illustrate this idea I offer the following example:
Myelodysplastic Syndrome also known as MDS, is described as” a precursor to Leukemia”(NCI, 2013). MDS “causes bone marrow to produce insufficient red blood cells, white blood cells and platelets”(NCI, 2013). Currently the leading treatment for MDS is a chemotherapy called Vidaza or azacitadine. When originally developed “azacitadine was an IV infusion which took a mere twenty minutes to infuse. Azacitadine then evolved to an even quicker delivery method”(Vallerand & Sanoski, 2013). The research and development team of Celgene Pharmaceuticals found that the drug could be effective as a sub-cutaneous injection. The reason this was a huge breakthrough was because unlike most chemotherapies that require one to two days a week of treatment or even one treatment day every three weeks. Vidaza must be given five days in a row every other week. Celgene decreased the time in office for the treatment of MDS patients and thus became the most dominant name in the treatment of MDS.
As you can see Vidaza has a generic name of azacitadine. This means that it has the ability to be copied as the patent has expired for Celgene. By dedicating the research and development team to the development of oral chemotherapies, the company has the opportunity to develop all...
References: General Information about Myelodysplastic Syndrome: National Cancer Institute (NCI), (2013). Website, http://www.cancer.gov/cancertopics/pdq/treatment/myelodysplastic/
Vallerand, A. H., & Sanoski C. A., Vidaza (2013) Drug Information, Davis Drug Guide (13th Ed.) Unbound Medicine Inc. Charlottesville, VA
Cytoxan, Benadryl Purchasing Information, McKesson Specialty Pharmacy Price Guide. (2013) McKesson Specialty Pharmacy, La Vergne, TN.
McConnell, C. R., Brue, S. L., & Flynn, S.M. (2009). Economics: Principles, Problems, and Policies (18th Ed.). Boston, MA: McGraw-Hill Irwin.
Please join StudyMode to read the full document