Medicinalindustrien: Omverden, konkurrenceevne og tendenser

Nikolai Svendsen Dokkedahl

Student thesis: Diploma thesis

Abstract

Manufactures of innovative drugs in the pharmaceutical industry today are world-wide put under a four-dimensional pressure of, first, increased regulatory demands and lengthy approval processes that delay launch of new medicinal products, second, substantial political demands for lower prices, third, increased costs of research and development, and fourth, generic competition by expiration of patent protection, making it increasingly harder to generate profits. This thesis examines the dynamics of the Danish pharmaceutical industry in a situation where global competition is an everyday concern. It starts by providing a status of how Denmark is positioned against competing nations, and it is concluded that even though Denmark finds itself at the forefront of the world’s pharmaceutical countries, nations such as Switzerland are still holding the lead. Subsequently, it is investigated which macro-environmental factors that most importantly affect the industry. Strict and complex regulation and a substantial export makes the Danish industry vulnerable against changes in the political environment, making both political and legal factors important. Limited options of market commination sharpens the focus on innovation and thus also makes technological factors very important for products already competing on innovation. Hereafter it is examined how the Danish framework conditions stimulate the competitiveness of Danish originators. It is concluded that both the Danish factor and demand conditions contribute well to challenge manufactures to improve themselves and their products, and that also related and supporting industries help making Denmark an attractive host country for pharmaceutical innovation. Also, this is supported by characteristics of the Danish working culture in general. Next, it is studied what challenges of competition Danish pharmaceutical companies are facing in the global market, and how future tendencies will change the ways of doing business. The analysis showed that extreme rivalry among existing competitors, including both other originators and parallel importers followed by generics, is the largest challenge companies should handle today, as neither threats of substitution, potential new entrants nor the negotiation positions of suppliers or 2 customers showed to be substantial. Future tendencies towards an increasingly higher focus on added value, growth in emerging markets, development of new (potentially substituting) pharmatechnical solutions and more biosimilar products will make this competition even harder. Finally, recommendations ofstrategic initiatives are provided at both a micro-economic and macroeconomic level. First, for originators to react on the impact of the identified tendencies it is concluded that they should increasingly focus on expanding their value chain to integrate medicinal products with technology from the biotech and medico industries. Further, originators should stepin earlier and leave at a later stage in the product line to customers. Also, companies should consider how to generate profit in new ways, and to establish manufacturing and data collection facilities in emerging markets of Asia and Africa. Second, for the Danish government to support future growth in the industry it is concluded that continued efforts should be made to attract capital and skilled labour. Also, research and development should be additionally supported by improving the options for private and public collaboration, especially across industrial limits toward medico and biotech. The Danish medicinal authorities should further be given more resources such that processes for approval of new medicine may be completed faster, allowing manufactures to enter the market earlier. Finally, the importance of good cooperation between international authorities is stressed, and the Danish government should make efforts to prevent trade barriers and increasingly market Denmark as a rising life science nation

EducationsGraduate Diploma in International Business, (Diploma Programme) Final Thesis
LanguageDanish
Publication date2019
Number of pages99
SupervisorsHenrik Johannsen Duus