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The purpose of this research is to develop a taxonomy of the impact of sales process regulations, guidance statements and laws (henceforth, referred to as “regulations”) on sales behaviours within the pharmaceutical industry, particularly as it relates to those within the USA.

Given the large number of regulations, guidance statements and laws and sales behaviours that comprise the domain of this study, this research uses a “multicenter, parallel-arm clinical trial data gathering method”. This approach aggregated or “stacked” the responses from three individual questionnaires; 7,493 total observations generated by 381 respondents were analyzed.

The analysis produced a six-cluster solution of regulations, guidance statements and laws indicating distinct taxonomic structures of items that affect selling activities.

The research was conducted with a single firm in the USA. Therefore, results may not be applicable to other geographical areas, firms and industries.

The knowledge of which behaviours are perceived by the salespeople to be impacted by what regulations, guidance statements and laws provides managers with a useful tool to sort their own companies’ regulations on the basis of the classification scheme.

This paper provides a novel taxonomic approach to organize sales activities affected by regulations, guidance statements and laws which provides a look at the unintended consequences of the item not compliance. Additionally, it uses a research methodology relatively unknown to social science inquiry.

This study aims to explore the dynamics enabling strategic account management (SAM) to function as a value co-creation selling model in the pharmaceutical industry.

Using an inductive qualitative research design, data are collected within 11 industry customers in Canada. This work focuses on hospitals as strategic accounts of pharmaceutical companies, exploring SAM value co-creation in the “hospital-pharmaceutical company” relationship.

The findings suggest the presence of two key dimensions that can enable a value co-creation SAM model in the hospital-pharmaceutical relationship: “customer-tailored value-added initiatives” and “relationship enhancers”. Customer-tailored value-added initiatives explain the activities that are central to the hospital-pharmaceutical company relationship and can lead to the provision of value added that is unique to the hospital. Relationship enhancers explain the activities that can help strengthen hospital-pharmaceutical company relations in the pursuit of enhanced value-added interactions between the two parties. The research demonstrates a cyclical relationship between “customer-tailored value-added initiatives” and “relationship enhancers”, leading to value co-creation through a SAM model.

The study informs pharmaceutical industry practitioners on how to improve their value proposition through new, more sustainable selling practices. It offers information on implementing a value co-creation SAM model, which can enable pharmaceutical companies to sustain long-lasting value-added relationships with key accounts such as hospitals.

The study contributes to the field of SAM by conceptualizing SAM as a value co-creation system. It introduces new knowledge in pharmaceutical marketing by offering empirical insight on the applicability and use of SAM in the hospital-pharmaceutical company dyad.

Specialty drug development is capital‐intensive and represents a new era for the entire health ecosystem. This “newness” has resulted in below‐par sales performance of these drugs. This paper seeks to explore the intricate relationship of product (or company), salespersons, doctors and consumers (patients) in the given scenario.

The study makes use of grounded theory and total interpretive structural modeling (TISM). Grounded theory is used to explore various factors of cognitive bias in selling specialty drugs. TISM is used to create a hierarchy amongst the factors and interpret the relationships amongst them.

The study proposes a cognitive bias amplification model explaining the phenomenon of cognitive bias in specialty pharmaceutical selling.

The study fills part of the significant research gap and addresses the issues in selling specialty drugs. The cognitive bias amplification model is helpful in providing the starting point for sales‐centric organizations to overcome the cognitive bias affecting salespersons.

Price becomes a main instrument for rationing pharmaceutical drugs in Central America as a consequence of pro‐market reforms implemented in the 1980s. Under market‐rationing conditions, people's access to branded drugs does depend on their purchasing power and on the vector of prices they face. The purpose of this paper is to study the regional pricing strategy followed by pharmaceutical firms across Central American countries. These countries differ in such economic factors as per capita income, income distribution, market size, and nature and extent of their social‐security system; thus, there are conditions that foster the implementation of price‐discrimination practices across the region.

The investigation takes advantage of a large database with information about prices of identical drugs sold across Central American countries and produced by 17 large pharmaceutical companies. Regression analyses are used to study whether price discrimination exists in Central American drug markets and what pricing strategies are followed by different pharmaceutical companies.

Results show that there are significant differences in the prices of identical drugs across the Central American countries, as well as that pharmaceutical companies follow different pricing strategies.

Cross‐country price comparisons are usually based on constructed price indices, which imply losing detailed information about the products being compared. This investigation uses prices of identical drugs, rather than constructed price indices, to study cross‐country price differences by pharmaceutical companies across the Central American region. The study of price discrimination is crucial to understanding how markets end up rationing such an essential product as pharmaceutical drugs.

The learning outcomes are as follows: what tasks are to be done by medical representatives in pharmaceutical industry? This study also highlights various competencies required to do effective selling in this industry; analyzes and discusses different unethical practices going on in the market; explains why ethical norms are necessary in sales context when sales targets are already achievable with unethical means; and develops and comments on strategies Flori Pharmaceutical can make to overcome on these unethical issues. What should be the response of Dahar to the email of Naveed khan? What course of action should be taken by Dahar in the deceitful reporting case of Mohsin Ali?

Flori is considered a leading and growing multinational organization in the highly competitive environment of Pakistan pharmaceutical industry with over 40 years of experience. The company aims to command a leading position in developing new health-care products as it offers a wide range of diabetic, cardiovascular, respiratory and vitamin products based on quality as a result of high research and examination. Recently, an email to Bilal Dahar on March 2017 from Flori’s star sales person Naveed Khan has forced management to take some strong decisions regarding ethical norms and values to be adopted by medical representatives of Flori pharmaceuticals. The email highlighted the issues related to sales pressure which are leading toward unethical sales practices. Dahar just not have to maintain Flori’s ethical code of conduct but he and his team also has to work hard to achieve more than 26% growth rate in sales revenue as compared to last year. Dahar knew that the highly competitive environment of pharmaceutical industry has led most of the stake holders to indulge in unethical behavior to achieve their individual targets. He knew that this is dangerous in long term for the multinational organizations such as Flori pharmaceuticals as if the similar behavior continues, the sales culture and values of the organization would be on stake. He also has to decide what decision to be taken against deceitful reporting issue of one of the top-performer territory managers, who was key person in helping Flori to close the sales year 2016 with the revenue of Rs. 6.4bn, a 26% growth over the last year. The case is rich enough to provide a platform regarding management of several ethical challenges in pharmaceutical selling and developing strategies based on them.

BBA, MBA final year.

Teaching Notes are available for educators only.

CSS 8: Marketing.

This study aims to assess the fraud cases, factors and control measures of financial fraud in the drug industry with evidence from Ghana. Drug industry and pharmaceutical are the same, and they are used interchangeably in this study.

Data from questionnaires were collected from 412 manufacturers, wholesalers and retailers of the drug industry. Data were presented and analysed with descriptive statistics and probit regression.

Results show that, in general, stealing of drugs, stealing of cash, usage of fake cheques, falsified documents and dubious accounting practices are some of the fraud cases in the industry. Factors such as gender, educational level, religious beliefs, regulatory 7measures, pressure, rationalization and opportunities influence financial fraud in the drug industry. Control measures such as thorough assessment of products, regular review of fraud policies, installation of fraud-detection software and effective internal systems could reduce the menace.

The paper addresses a number of theoretical and systemic issues on financial fraud in the drug industry but with limited specific quantitative data or calculations as well as limited sample size. Further studies could offer a more quantitative approach with a larger sample size in an attempt, for instance, to estimate the financial costs of financial fraud to the drug industry.

This paper openly tackles various attempted frauds and financial malfeasances from stakeholder perspectives in the drug industry. Practical measures have been given to tackle the consequences of the menace.

This paper is geared towards providing valuable learning points for stakeholders in the drug industry to handle daily operations to assist them in detecting and preventing similar occurrence of financial fraud.

Purpose – Pharmaceutical expenditures have an important role in Europe. The attempts to control expenditure have used a wide range of policy measures. We reviewed the main measures adopted by the European Union countries, especially in countries where governments are the largest third-party payers.

Methodology – To complement a literature review on the topic, data was gathered from national reviews of health systems and direct inquiries to several government bodies.

Findings – Almost all countries regulate prices of pharmaceutical products. Popular policy measures include international referencing to set prices (using as benchmark countries that have set lower prices), internal reference pricing systems to promote price competition in domestic markets, and positive lists for reimbursement to promote consumption of generics (including in some cases substitution by pharmacists of drugs prescribed by physicians). Despite the wide range of policy measures, it is not possible to identify a “silver bullet” to control pharmaceutical expenditures. We also identified two main policy challenges: policy coordination among countries within the European Union to maintain incentives for R&D at the global level, and the development of new relationships with the pharmaceutical industry; namely, the so-called risk-sharing agreements between the pharmaceutical industry and governments/regulators (or large third-party payers).

The purpose of this paper is to identify the most relevant marketing factors and examine existing theories and to provide guidance for planning future studies. Since drug markets are very complex, this paper will focus on a particular market/country to reduce some of this complexity.

A serial research study is undertaken to examine the essential marketing success factors by means of two qualitative studies applying Focus group and Delphi survey techniques. Swiss healthcare professionals in middle and senior management positions (Focus group n=5, Delphi group n=11) are asked to voice their personal opinion regarding the importance of various factors that might influence the turnover of prescription drugs. The fundamental findings derived from the Focus group interview are used for the Delphi group survey set‐up. To reach a consensus within the Delphi group, a three‐step interactive procedure is applied. For the evaluation of the Focus group results, a content analysis is performed. The results of the Delphi study are investigated, using descriptive statistics.

The paper ultimately yields a ranking of 29 instruments perceived to be important in the marketing of pharmaceuticals in Switzerland. With this paper, the proposed model and its propositions could be supported.

This paper investigates their relevance based upon practical experience of Swiss health care professionals and is therefore somewhat limited to the Swiss market.

In the Swiss market, successful marketing has to consider appropriate product properties including issues such as efficacy and safety plus a promotion policy that emphasizes relationship with opinion leaders and personal selling. Additionally, it is vital that the product is also distributed via sales channels such as hospitals and physicians and that the product will be reimbursed by health insurance.

These findings will enable pharmaceutical companies to improve their sales success. The proposed model can be extended to other markets and countries.

Increased outsourcing and importation of drugs from different parts of the world to the Latin America and the Caribbean (LAC) region result in the proliferation of substandard and fake medicines, posing a threat to public health. The presence of substandard and fake medications in LAC regions is a source of public health concern and causes an economic burden to the governments in these regions. Whereas testing and detecting medication quality can easily be achieved in developed countries, the situation is different in developing countries such as LAC. This paper aims to examine the public health challenges faced by LAC regarding substandard, fake and counterfeit medicines and how the region can tackle these challenges.

Databases such as Scopus, PubMed, ScienceDirect, Embase, HINARI, EBSCOhost, Google Scholar, unpublished data, conference abstracts and papers from World Health Organization, Pan-American Health Organization and electronic newspapers were searched concerning medicine quality and in LAC.

Drug treatment improves the quality of life while decreasing morbidity and mortality among diseased populations. Absence of or inadequate testing laboratories, old and ineffective legislature, lack of enforcement or willpower and lack of effective surveillance are challenges in LAC for the proliferation of substandard and falsified medicines (SFMs).

The most significant limitation of this study was the need for the reviewers to have used articles written in other languages besides English. The LAC region has a large population in non-English-speaking countries, and many articles are written using local languages. Hence, excluding those articles is a limitation worthy of note in this review. The articles accessed needed to provide adequate information on SFM markets and illegal pharmacies or hospitals but did not. Future reviews may focus on providing illegal substandard and falsified medicines markets in the region and how they can be minimized or eliminated.

This review highlights the challenges faced by LAC countries regarding substandard, fake and counterfeit medicines. The sources, prevalence and consequences of substandard and falsified drugs were identified to suggest the measures needed to curb the infiltration of low-quality medicines in LAC.

In today’s highly comparative pharmaceutical sector, multiple humanitarian and pricing issues are prevalent within the industry. Mergers and acquisitions (M&A) are perceived to be an essential method for organizational consolidation and value generation. The purpose of this paper is to illustrate via descriptive methodology and t-tests, how a merger can mitigate the effects of fraud in the pharmaceutical sector.

The research focuses on secondary data. This research paper explores the differences in these organizations’ financial metrics using the t-test regression analysis, both pre and post-merger. Secondary data have been used to compile separate financial ratios for five years before and five years after the scandal.

The results indicate a positive outlook for both organizations after the merger. Mergers appear to have a favorable impact on the performance of a company, with the only exception of external variables (laws, controversies, fines, etc.) affecting its post-merger performance.

The paper uses secondary data to test the impact that mergers have on pharmaceutical companies after they have been implicated in corporate malfeasance.