The Case of GlaxoSmithKline Study Example | Topics and Well Written Essays - 2000 words

The of GlaxoSmithKline - Case Study Example While the blockbuster strategy at GSK has been so successful in the past, it is nearing a period where it is more likely than not to become obsolete. This is as a result of a diverse number of challenges which have made blockbusters less profitable when compared to the past few decades. Among these challenges is the decline in R&D productivity where only a single compound out of nearly 13 discovered enters the market after clinical trials have been carried out and this is a big blow to pharmaceutical companies such as GSK. Moreover, because of the need to make the public aware of newly discovered drugs that enter the market, it is essential for companies to commercialize it. This takes increased funding and creates a situation where recent years have seen an increase in the costs of commercialisation for GSK in such a way that the processes of discovering, developing and launching new products have increased substantially. In addition, in recent years, patents to blockbusters have in creasingly been challenged not only by smaller pharmaceutical companies but also by governments and this has created a situation where GSK has come face to face with serious limits to the revenue potential of its products. The shorter exclusivity periods that have come about as a result of competition has seen companies develop similar yet cheaper drugs than GSK’s blockbusters which have received the approval of numerous governments across the world. This situation has increased pressures on GSK’s patent protections.