The pharmaceutical value chain: local and global insights

Avinandan Mukherjee (Clayton State University, USA)

International Journal of Pharmaceutical and Healthcare Marketing

ISSN: 1750-6123

Article publication date: 7 April 2015



Mukherjee, A. (2015), "The pharmaceutical value chain: local and global insights", International Journal of Pharmaceutical and Healthcare Marketing, Vol. 9 No. 1.



Emerald Group Publishing Limited

The pharmaceutical value chain: local and global insights

Article Type: Editorial From: International Journal of Pharmaceutical and Healthcare Marketing, Volume 9, Issue 1

Generic drugs have risen in popularity and have impacted the pharmaceutical value chain worldwide. The dynamic pharmaceutical value chain is affected by customer loyalty, price differentials, international competition and supply chain capabilities. This journal issue will explore such contemporary topics and more that are pertinent to the pharmaceutical industry.

The first article is authored by Kathleen Iacocca from the University of Scranton, James Sawhill from Washington University in Saint Louis and Yao Zhao from Rutgers University. It examines “Why are Brand Drugs Priced Higher than Generic Equivalents?” This paper investigates why brand-name drugs are priced higher than their generic equivalents in the US market. It hypothesizes that some consumers have a preference for brand names which outweighs the cost savings realized by switching to generics. Additionally, individuals are habitual in their consumption of prescription drugs, which leads to continued use of the brand in the face of generic competition.

The second article, authored by Shelley McGee from the School of Public Health at Wits University in Johannesburg, is titled “The Economic Pricing Impact of Authorized Generic Medicines in South Africa”. The author proposes that authorized generic drugs, which are identical to the originator brands, offer a solution for originator companies to protect their markets from independent generic competition. Independent generic competitors have claimed these “clones” have a negative impact on pricing and competition in South Africa. This analysis seeks to examine whether these clones have influenced prices in South Africa.

The third article of this journal issue examines how to build consumer loyalty in pharmacies. The paper “Antecedents and Consequences of Pharmacy Loyalty Behavior”, written by authors Amod Athavale, Benjamin Banahan, John Bentley and Donna West-Strum of the University of Mississippi, studies the drivers of pharmacy loyalty behavior and assesses the impact of such behavior.

The fourth article is titled “Trade Performance and Revealed Comparative Advantage of Indian Pharmaceutical Industry in the New IPR Regime.” The authors from the Indian Institute of Technology – Varun Mahajan, D.K. Nauriyal and S.P. Singh – examine the trade performance, revealed comparative advantage and trade specialization indices of Indian pharmaceutical companies as effected by the post-modified Indian Patent Act. The practical application of this study demonstrates that the Indian pharmaceutical industry can be a good learning experience for other developing countries hopeful to enter the global market for generic drugs.

The final article of this issue studies the pharmaceutical supply chain. Author Gholamhossein Mehralian shows that in a continuously changing global competitive environment, an organization’s supply chain agility directly impacts its ability to produce and deliver novel products to its customers in a timely and cost-effective manner. The main goal of his article, “Developing a Model for an Agile Supply Chain in the Pharmaceutical Industry”, is to develop a model for an agile supply chain in the pharmaceutical industry.

I hope you will enjoy reading these articles and we welcome further contributions from both academics and health-care practitioners on pharmaceutical-related topics.

Avinandan Mukherjee


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