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The purpose of this paper is to examine the effects of generic medicine competition on the market share growth and pricing of originator brand medicine in the South African private pharmaceutical market.

Regression analysis is applied to market share data of originator brand drugs that have been exposed to competition from generic substitutes, based on an agency model of the prescribing physician, the pharmacist or the medical scheme.

The results indicate that the price of an originator brand medicine relative to the weighted average price of its generics has a significant negative impact on the change of its market share. Investigations into the prices of the originator brands, in relation to the number of generic equivalents in the market, indicate that the number of generics available in a specific market has a significant positive impact on the relative price of originators, thereby making originators relatively more expensive compared to their generic competitors. At the same time, the results show that the absolute price of the originator brand medicines declines as the number of generic equivalents in the market increases.

The results indicate that, for all modules pooled together, the relative price of the originator product to that of the generic equivalent, is responsible for a significant reduction in the relative change in the market share of the originator medicine. When analysed on the level of anatomical class, or the individual molecule, results are not consistent. For affordable healthcare, the results support the reduction in barriers to entry for generic medicine. Furthermore, the results support education and incentives for doctors, pharmacists and end‐users to develop generic alternatives as trusted brands in their own right.

This study quantitatively assesses the effect that generic medicine competition exerts on the market share of originator medicines in South Africa.

The substitution of generic prescription medicines for branded medicines is being practiced in most westernised countries, with evidence of a strong focus on evaluating and monitoring its economic impacts. In contrast, the purpose of this paper is to explore the generic substitution experience of customers and pharmacists in a pharmacy practice setting.

The study applied a phenomenological method using the narrative inquiry technique combined with critical event analysis, in order to understand the generic medicine experience as perceived by customers and pharmacists as key substitution actors. Interviews were conducted with 15 pharmacists and 30 customers in Australia, Finland and Italy, using a narrative inquiry technique combined with critical events and metaphors.

The findings show that customers, with poor awareness of generic prescription medicine when offered as a substitute, were likely to become confused and suspicious. Pharmacists related how they felt challenged by having to facilitate generic substitution by educating unaware customers, in isolation from both the prescribing doctor and the government/insurer. They also experienced frustration due to the mistrust and annoyance their customers displayed.

The findings suggest that to increase generic substitution, open dialogue is paramount between all the participants of this service network, along with the development of targeted promotional materials.

Little is known about how customers and pharmacists experience the service phenomenon of generic medicine substitution. This paper explores how the key actors at the point of substitution make sense of the process. Additionally, the methodology provides a technique for obtaining a deeper understanding of both the customer and pharmacist experience of generic medicine, along with insights into how the uptake of generic medicine might be improved.

Cheaper generic anti-retroviral medicines are encouraged and often prescribed in South Africa for HIV/AIDS treatment. However, the medicines’ acceptance rate is relatively low. This has been attributed to inadequate brand knowledge of the bioequivalence of generic medicines. Studies have examined how brand knowledge structure lead to purchase. The contributions of brand relationship builders (i.e. trust and satisfaction), which are indicators of sustainable purchase, are rarely considered. This study aims to adapt Esch, Langner, Schmitt and Geus’ (2006) brand knowledge structure and relationship model to examine the impact of South African young adults’ brand knowledge structure (brand awareness, brand image and brand beliefs) and trust on brand satisfaction and purchase.

Cross-sectional data was quantitatively collected from 207 young adults through self-administered, paper-based questionnaires. Data was analysed with structural equation modelling.

Brand awareness, image, trust and belief in efficacy positively influenced purchase. All these factors, except brand awareness, positively led to satisfaction. The tested adapted model explained 53.0 and 58.5% variances of purchase and brand satisfaction, respectively.

Considering how much brand knowledge structure and trust explained purchase and satisfaction from the tested model, South African government, pharmaceutical marketers and consumer interest groups should educate young adults about the bioequivalence, safety and efficacy of generic medicines. With greater knowledge of these qualities, satisfaction is gained from purchase decision.

Instead of the usual examination of demographic differences in generic medicine beliefs and perception, this study contributes by revealing brand-related drivers of purchase and satisfaction.

The purpose of this paper is to evaluate the possibility of marketing specific low‐cost drugs across segmented markets in India.

The study is empirical in nature, based on the primary data gathered through actual field survey. The study analyzes the attitudes, perceptions and experiences of five stockists, 50 physicians and 100 patients drawn from 20 healthcare organizations from different parts of the State of Karnataka in India.

The survey findings revealed that patients would be happy and would have better access to medicine if the same is offered at a lower price. Doctors are willing to prescribe generic drugs. Generic drug market has good economic feasibility. At present, the consumption of generic drugs to branded drugs in hospitals is found to be in the ratio 2:3 while for the stockist it is in the ratio 1:2. The study also revealed the fact that patients prefer to take generic medicines mostly on the basis of physicians' advice. They do consider cost but generally go by the prescriptions of the doctors.

Prescribing generic drugs would definitely contribute to greater use of medicine by the rural poor and thus better health conditions in rural areas. Low‐cost medicine is an opportunity for pharmaceutical companies because consumers of healthcare are increasingly concerned with the quality and the cost of drugs that they buy. This research enhances sales and marketing management in terms of creating awareness of the importance of doctors' perceptions. Healthcare providers would benefit from the findings of this paper.

As the generic drug market encompasses a variety of healthcare professionals and users, this paper establishes a practical methodology to have an understanding about the attitudes, perceptions and experiences of stockists, physicians and patients regarding the usage of such low‐cost drugs.

The identification of country-specific advantages for business activities is one of the most crucial issues of strategic management and international business literatures. We address this issue by examining location-specific conditions for a successful generic medicines industry within 24 European countries. The findings of our fuzzy-set qualitative comparative analysis show that there are no necessary conditions for the high performance or absence of the high-performance industry. By revealing the causal complexity related to the issue, however, we show that the high performance or lack of it results from a configuration of conditions. Specifically, we identify two sufficient causal configurations to both outcomes. These findings provide clear implications for generic medicines industry firms who are planning location choices of their operations. In addition, this study provides a methodological advancement to explain and understand which country elements matter more, for what outcomes, and under what conditions.

The purpose of this paper is to investigate the percentage of generic inventory pharmacists have in stock, to comprehend why pharmacists in Jordan recommend and dispense generic products.

In total, 104 pharmacists were surveyed using a structured questionnaire. The questionnaire contained statements about perception of generic products, inclination to recommend generic products, importance of promotions, factors influencing a recommendation, stock of generics, and among others. Correlational and discriminant analyses were used to establish associations between variables to distinguish characteristics between groups.

More than half of the Jordanian pharmacists sampled carry between 20 and 39 per cent stock of generic drugs and 46 per cent carry more than 40 per cent stock. One‐third (33 per cent) substitutes branded products by generic ones and slightly more (36 per cent) recommend more generic than branded products as opposed to those who recommend more branded products (24 per cent). Male pharmacists (49 per cent) tend to recommend more generic products than do females (24.6 per cent) and those who recommend more branded products are more influenced by sales visits rather than manufacturer's name or bonuses.

The paper provides valuable information about the pharmaceutical industry in Jordan and the empirical study adds insights from pharmacists about generic medicine.

This paper links supply chain risk management to medicine supply chains to explore the role of policymakers in employing supply chain risk management strategies (SCRMS) to reduce generic medicine shortages.

Using secondary data supplemented with primary data, the authors map and compare seven countries' SCRMS for handling shortage risks in their paracetamol supply chains before and during the first two waves of the COVID-19 pandemic.

Consistent with recent research, the study finds that policymakers had implemented few SCRMS specifically for responding to disruptions caused by COVID-19. However, shortages were largely avoided since multiple strategies for coping with business-as-usual disruptions had been implemented prior to the pandemic. The authors did find that SCRMS implemented during COVID-19 were not always aligned with those implemented pre-pandemic. The authors also found that policymakers played both direct and indirect roles.

Combining longitudinal secondary data with interviews sheds light on how, regardless of the level of preparedness during normal times, SCRMS can be leveraged to avert shortages in abnormal times. However, the problem is highly complex, which warrants further research.

Supply chain professionals and policymakers in the healthcare sector can use the findings when developing preparedness and response plans.

The insights developed can help policymakers improve the availability of high-volume generic medicines in (ab)normal times.

The authors contribute to prior SCRM research in two ways. First, the authors operationalize SCRMS in the medicine supply chain context in (ab)normal times, thereby opening avenues for future research on SCRM in this context. Second, the authors develop insights on the role policymakers play and how they directly implement and indirectly influence the adoption of SCRMS. Based on the study findings, the authors develop a framework that captures the diverse roles of policymakers in SCRM.

Intentions of managers of pharmaceutical multinational enterprises (MNEs) to adopt business strategies, which will aid global health and wellbeing, are in some ways linked with their understanding of the returns that their company will receive from these investments. However, the MNE’s managers are unaware of business strategies that will allow them to link their business activities with the corporate objectives of contributing to Sustainable Development Goals (SDGs). Pharmaceutical companies are moving toward monopolistic practices by acquiring local companies for manufacturing purposes or by engaging local companies in contract manufacturing and directing the focus of these companies away from innovation and toward profit making. At the same time, pharmaceutical MNEs are promoting global health and wellbeing as their SDGs. This study uses knowledge from existing sources and expert insights to explain the returns that MNEs can get from their investments related to global health and wellbeing. One of the important recommendations from the ethical point of view is engaging local firms in the innovation process; from the marketing perspective, this study recommends the use of a corporate brand and not a product brand for offering generic medicines. The operations perspective explains how MNEs can incorporate the social agenda into their mainstream business strategies. Limitations of the study are discussed, and avenues for future research are explained.

This paper aims to examine whether authorized generics (AGs) have influenced prices and market shares in markets for molecules facing generic competition in South Africa. AGs (clones), which are identical to the originator brands, offer a solution for originator companies to protect their markets from independent generic (IG) competition. IG competitors have claimed that AGs have a negative impact on pricing and competition.

In a retrospective analysis, pricing and quantity data for 24 months post generic entry were extracted for oral solid dosage form products which experienced generic entry into their markets between 2005 and 2011, divided into “Authorized generic affected” and “no authorized generic” markets. A series of indices was calculated, as well as market shares of competing originator and generic products, and the number of generic competitors determined. Indices and market share data for clone affected and unaffected groups were tested at 6, 12, 18 and 24 months using unmatched t-tests, at a 95 per cent significance level.

None of the evaluated pricing indices showed a consistently significant difference existing between AG-affected and no-AG samples. The only variable for which the two samples consistently differed was market shares, with originator brands experiencing significantly more market share erosion in AG-affected markets. Pricing levels of generics and originator products as well as growth of numbers of generic competitors were similar in both AG-affected and no-AG groups.

A study of this nature on the impacts of AGs in the South African generics has not been previously published and reflects the situation particular to the country.

This paper aims to reflect on different issues and perspectives on returns on investments made by MNEs towards social development. Need for an inclusive society drives accountable and effective cooperation between different actors in a market. Although multinational enterprises (MNEs) that operate in developing markets invest in social development, their managers find it very challenging to incorporate social development agenda into their business practices. Therefore, academics should develop business models which can guide thoughts and actions of managers of MNEs towards social development while allowing them to hold on to the business objectives and targets.

A review of current literature with available anecdotes about business practices helped the author to form a viewpoint and make recommendations.

The objective of the eighth millennium development goal is to promote global partnership between MNEs and domestic firms with or without intervention of a subsidiary. Addressing the particular needs of developing countries, such as capability enhancement or poverty reduction by managers of MNEs in a global setting, becomes a very complex issue. Investments by MNEs in developing countries towards these objectives are driven by different factors such as operational transparency, technological efficiency, investment types, innovation capability, branding strategy, quality assurance, public–private partnership, market-based pricing, reciprocity, distribution for penetration, etc., apart from linkages they create for developing resource-based competencies required for survival in a competitive market.

Empirical investigation of the viewpoint presented here will be required to convert recommendations into models applicable by managers of MNEs.

This study will help to enable managers of MNEs to perform need-based socially responsible actions.

This study will facilitate participation of MNEs in social development through their contributions towards poverty reduction and capability enhancement.

This paper pushes managers and academic scholars to think about the strategies required to incorporate social agenda into business models of MNEs benefiting from developing markets.