Forest Pharmaceuticals Competition
Now Viewing Forest Pharmaceuticals's competition in: Pharmaceuticals Manufacture
Call Preparation Questions
Customers, Marketing, Pricing, Competition
Does the company handle marketing and distribution? - Many small companies have marketing and distribution arrangements with big companies.
What sort of marketing does the company do? - Advertising in medical journals, sponsoring medical symposia, and presenting at medical conferences are typical marketing activities for prescription drug companies, but much selling is face-to-face with doctors who write prescriptions.
What percentage of selling effort goes to MCOs, hospitals, doctors? - MCOs and hospital chains often have lists of approved drugs that their participating doctors must use.
How much does the company spend on direct-to-consumer advertising (DTCA)? - Prescription drug producers spend more than $4 billion a year on DTCA.
What are the significant differences between the company's major drugs and competitors'? - Many drugs face competition from "me-too" drugs that differ just slightly in price or performance.
Does the company face competition from generic drugs? - When patent protection expires, a brand name drug often is made in generic versions.
How much of the company's product is sold to its largest buyer? - Even large companies may have big buyer concentrations.
Competitive Landscape
Demand for pharmaceutical manufacture is driven by the desire to cure illness and disease. The profitability of individual companies depends on their ability to discover and market new drugs. Large companies benefit from their economies of scale in research, manufacturing, and marketing. Small companies can compete effectively by specializing in drugs that target one or two specific ailments. The industry is capital-intensive: average annual revenue per worker is about $700,000.
Business Challenges
CRITICAL ISSUES
Heavy Government Regulation, Political Pressure on Prices - The pharmaceutical industry is heavily regulated by the FDA and subject to state and federal laws. The high profitability of many drug companies at a time of rising healthcare costs makes the industry a prime target for regulators, including politicians. In recent years, US spending on prescription drugs increased about 4 percent per year. In many other countries, drug prices are government-controlled.
Revenue Depends on Patent Protection - Profits from sales of prescription drugs usually plummet once lower-cost generic alternatives are available. Generic drugs now account for more than half of all prescriptions filled in the US. Traditional drug companies must constantly discover or acquire new drugs. Manufacturers of generic drugs, on the other hand, have a constant source of new products as patents expire.
Industries Where Forest Pharmaceuticals Competes
- Pharmaceuticals
- Pharmaceuticals Manufacturers
- Generic Drugs
- Over-the-Counter Medications
- Pharmaceuticals Manufacturers
