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The Specifics of Entry Strategies of Leading Pharmaceutical Producers in the Emerging Markets

Student: Kirill Borisov

Faculty: Faculty of World Economy and International Affairs

Educational Programme: International Business (Master)

Year of Graduation: 2018

This a time to change strategic priorities for Leading Pharma Producers. As developed markets are flattening, they have to find new sources of revenue. Expansion to emerging markets is a perfect solution for this. Growing middle class and per capita usage of pharmaceutical products give a grounding for Pharma business development in emerging countries. However, what is the best way to approach emerging pharma markets? This topic of expansion of Big Pharma in emerging countries is very challenging. On the one hand, there is many data on Pharma, but on the other hand, despite the huge size of Leading Pharma Producers they find ways to “steer clear”. General theoretical approach to this issue may suggest that Leading Pharma Producers should launch subsidiaries without any restraints in every country they want selling products, which were successful in, developed countries. However, government approval procedure and specifics of local customers and regulations in emerging countries make Pharma producers adjust their traditional approach to each market group. Existing study on market entry models provides only a general framework for expansion. It gives an overview of the most common ways of internationalization used in Pharma. In our paper, we studied the specific features of entry strategies of Leading Pharma Producers into emerging country trying to understand what the most effective way of that is.

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