The study of the relationship among brand, channel, and price in oral anti-diabetic drug market

• Main Author: 朱庭萱
• Other Authors: 唐瓔璋
• Format: Others
• Language: zh-TW
• Published: 2005
• Online Access: http://ndltd.ncl.edu.tw/handle/12903688065095823384

碩士 === 國立交通大學 === 管理學院碩士在職專班經營管理組 === 94 === The purpose of this study is to evaluate the relationship among price, brand (whether it is brand drug or generic drug) and channels. The results of this study show that the average price of brand drugs is higher than generics and brand drugs with patent protection always enjoy higher price. From literature reviews, we can see that some brand drugs will raise their price after patent expiration because of band loyalty of prescribers. However, we didn’t observe this from our data. While healthcare environment is getting more and more competitive, brand loyalty is hard to maintain. Brand drugs will become price sensitive after generics’ entry. As for drug price in different channels, both brand drugs and generic drugs have no significant difference in price among three channels which are hospitals, clinics, and drug stores. This is because of the limitation of data source. The actual transaction price is confidential and the only available disclosed price data is reimbursement price issued by Bureau of National Health Insurance (BNHI). From liner regression analysis, we found that drug price has liner relationship with brand and channels but not significant with policy. Since the enforcement time of global budget policy in year 2002 and hospital self-management policy in 2004 is not long enough to see the impact from BNHI price. This can leave to future study when more data available on hand. Policy and channel interaction is also not significant because policy impacts on all channels equally, therefore, no interaction can be found. Although sales of brand drugs will be affected by generics’ entry, brand drugs still account for over 70% market share comparing with generics in value and DDDs (defined daily dose). However, anti-generic is still very important for brand drug marketers. Three main strategies for anti-generics are: (1) to develop new generation drugs before old drug out of patent; (2) to blur the lines by pseudo-generics; (3) to switch prescription drugs to OTC drugs. Brand drug marketers have to prepare earlier for anti-generics and product life cycle management. Plan strategically with consideration of policy impact and political issues, marketers will have more chances to win the battles toward generics.