Pharmaceutical business model

Essay add: 29-10-2015, 11:34   /   Views: 436

In the past decades, pharmaceutical business model depends on identifying profit-potential medicines, promoting them with heavy sales and marketing and turning them into blockbusters. GSK's business model is no exception. Its sales revenue is also driven by blockbusters. For example, in 2002, 8 blockbusters of GSK contributed to $14.240 million sales revenue, taking up 53% of its total ethical sales (Reuters Business Insight 2003a cited in Froud et al 2006). However, this business model will not suffice in the next few years, since the whole pharmaceutical industry will face challenges such as expiring patents of a large number of products and demand for new and better medicines.

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