Pharmaceutical enterprises’ market entry strategies

Abstract

The pharmaceutical sector encompasses a wide range of business activities – research and product development, manufacturing, marketing, international business, wholesale, retail and services. Consequently, it is facing the contemporary challenges of globalisation, sustainable development, social, economic and political change. At the same time, pharmaceuticals have a significant impact on the provision of health care, which limits the freedom of business. In framework of this research the applicability of the International business theories to pharmaceutical sector, as well as the major factors influencing the enterprise’ choice of the market entry mode are explored. The organisation of healthcare and its financing system are important external factors influencing the market entry strategy of the pharmaceutical company. Focusing on the healthcare market as a platform for medical entrepreneurship and significant regulatory interventions, it should be noted that, in a context of globalization, healthcare is characterised as both an international business and an area to strong government influence and demand generation. In the process of market entry strategy development, pharmaceutical enterprises more often choose the direct exporting, contractual modes and foreign direct investments as the market entry modes. In these circumstances, the Managed Entry Agreements become topical to ensure the availability of new medicines for patients and to encourage the pharmaceutical enterprises to come into market.