Introduction
From a classic marketing approach there are four broad types of industry player to consider: ethical, over the counter (OTC), generic, and biotech. Each requires a very different strategic capability. Producers of branded prescription drugs require strong R&D and global sales and marketing
infrastructure. Branded OTC drugs demand direct-to-consumer marketing capability. Generics companies focus on supply chain management and manufacturing cost leadership rather than marketing. Biotech companies must create and defend intellectual property in specialized research fields and are only on the verge of adopting marketing skills. Because of the different attributes and cost structures involved, multinationals who own OTC and generics businesses generally operate them separately, frequently using another company name. Similarly, those that have acquired biotechs normally leave them to operate fairly autonomously.