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(Group4)(Section-A)
But since this product have been running since a long time under a
patent, its patent expiration dates are approaching soon, e.g. in
case of humira, the patent expires on Dec 2016, they are focusing
to move onto the generic product range as mentioned earlier.
But Abbott faces serious problems with its margins that it must
address. Companys gross margins are roughly 20% below the
average of its competitors, due to high costs of goods sold and
lower pricing power. Hence not a low cost strategy model.
It has a high focus on Pharmaceutical R&D and Technology as
it seeks to produce specialized drugs.
Marketing and Strategy plays a major role to promote generic
drugs.
REGULATION
Larger countries often have varying regional regulations and
segments, each of which requires a tailored approach.
The great marketing mix strategy used by the Pfizer drives them to
become worlds first US $10 billion a year drug.