European market-entry strategies for generics companies has been saved
European market-entry strategies for generics companies
Why a generic approach will not work
Today, generic drugs account for around 50 percent of the European market by volume. Generics manufacturers considering European market-entry must have a deep understanding of the global landscape. While gaining this knowledge seems unobtainable, Deloitte took a close look at the European generics market and developed considerations for small-to-mid-size companies seeking to successfully develop and implement an effective market-entry strategy. When a generic approach won’t work, read our latest report.
- Top considerations
- Know before you go
- Know and build on your strengths
- Meet the author
- Join the conversation
Top considerations for developing a market-entry strategy
Keeping in mind the complex market dynamics, regulatory requirements, patient attitudes, and prescribing habits, Deloitte research suggests that the leading go-to-market strategy for generics manufacturers is neither “one size fits all” nor even “one size fits many.” Rather, generics manufacturers should consider developing country-specific approaches based on three “hows” that can help them understand market dynamics and identify the capabilities they need to be effective:
- How are generics prescribed?
- How are generics dispensed?
- How are generics purchased?
Download this paper to learn more about the attributes that can be used to distinguish select European countries, such as the EU5 (European Union countries of France, Germany, Italy, Spain, and the United Kingdom) and representative Eastern Europe markets Poland and Russia, and can be used to create a baseline for market assessments and potential entry strategies.
What generics manufacturers should know before they go
Deloitte took a closer look at the European generics market and developed considerations for small-to-mid-size companies seeking to successfully develop and implement an effective market-entry strategy. Here are some highlighted considerations from the report:
Consider the three "hows"
Assessing the complex European generics market calls for a detailed examination of each country’s unique attributes based on three "hows:” How are generics prescribed? How are generics dispensed? How are generics purchased?
Assess each market
To help determine optimal European entry points, a generics company should compile individual market profiles to understand their specific value drivers and dynamics.
Know and build on strengths
Potential entrants should also evaluate their core competencies in eight areas to determine which ones they may leverage as competitive advantages in new markets.
Decide whether to partner, buy, or build?
Companies evaluating which of the three market-entry options–partner, buy, build–will best meet their needs should consider each option’s potential influence on speed to entry, risk versus perceived return, and market specificity.
Regardless of how and which European market(s) a generics company decides to enter, the sequence in which it does so should be a careful consideration because there are cross-country dependencies that may impact pricing and distribution decisions.
Understand moving from market entry to sustainable growth
Conducting a market assessment and developing a targeted entry strategy are crucial first steps for a generics company seeking to establish or expand its presence in Europe.
Download the report for a more detailed review of market-entry strategies for generics companies. Please reach out to one of our authors for more.