Brand Medicine: Use and Future Potential of Branding in Pharmaceutical Markets

Abstract

Successful pharmaceutical companies are rich in intellectual property. Historically, this property has taken the form of patents, and a company's skill in acquiring such assets has been instrumental in driving its share price. But with the huge increase in public interest in and access to hitherto restricted pharmaceutical products and information, it is clear that the industry's approach to marketing must change. Couple this with the increasing elusiveness of breakthrough new products, and it becomes clear that the fundamental business model of the leading companies must change too. Strong brands, which help support a product's market position long after its patent has lapsed — or provide a platform for the OTC arena — can add layers of sustainable value because they ‘connect’ with doctors, patients and consumers alike. Thus careful brand management will play an increasingly important role in the future of value creation in the pharmaceutical industry — much as it does in the majority of industries where the supply of goods and services is unrestricted and consumer choice is paramount.