Pharmaceutical companies have operated successfully for decades by following the premise that development of new drugs would allow success, growth and expansion. One of the success stories of believing to this premise is Schering - Plough's experience of Garamycin (gentamycin). From the late sixties to 1980 when the patent expired the aminoglycoside antibiotic market was dominated by this company's gentamycin, despite strong competition from comparable medicines such as Lilly's Nebcin (tobramycin), Bristol-Myers Squibb's Amikin (amikacin).

This kind of companies has approach to build their portfolio in technology oriented product portfolio. This kind of portfolio was built on the basis of the specific technological knowledge and experience of the company. The key ingredient for success was to heavily invest in technology and Research & Development. The companies have to re-invest the earning. Sometime in order to hold the supreme, the company has to invest more than the earning of fiscal year. That means more lo~ or fresh cash injection from shareholder. It is a typical of Research & Development oriented companies. The SWOT analysis of this type of company is shown below.



Research Location : Boehringer Mannheim Indonesia

Supervisor: Prof. Dr. Wagiono Ismangil

Accepted on 1996



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