Innovation in a Pharmaceutical Firm, Essay Example

Introduction

According to the World Health Organization (WHO) the total number of people suffering from sugar diabetes globally had significantly increased to a total of 170 million by the mid parts of 2008 with a prediction of an increase in over two fold by the quarter of this century. It is estimated that almost 20 million of the population of the United States are living with chronic and terminal diabetes.

Diabetes is a disease that occurs as a result of failure of the pancreas to generate the insulin hormone needed to breakdown complex sugars into simple forms for assimilation. The effect of the disease on the victim largely depends on the level of secretion of the insulin hormone. The shortage or visible absence of the hormone in the human system results in an abnormally high pile of glucose in the bloodstream instead of the cells that need it. Thanks to research, the artificial insulin hormone was developed as the most standard form of managing the disease until recent innovations opened new doors. During the 2005 financial year the total global industry for the production and sale of diabetes management drugs were pegged at a total of $15 billion. Artificial insulin constituted the largest product sold with a contribution of a little above $6 billion.

It is against this background that AD&K Pharmaceuticals after critically studying the market structure for diabetes management related drugs have come out with the most comprehensive and effective method of managing the disease. The introduction of “TIMSUM” unto the market provides the most credible alternative to the daily insulin injection dose that patients have to use to manage diabetes.

What is TIMSUM?

Unlike the insulin hormone injection TIMSUM makes use of laser technology to penetrate the blood stream to neutralize the effects of the complex sugars piled up in the bloodstream. In order words the diabetes patient does not have to bother about natural insulin secretion or not. TIMSUM has the capacity to restore the sugar level to optimum standards without altering the PH level of the blood.

The advent of TIMSUM unto the market is intended to achieve two major goals namely: providing absolute relief to the numerous diabetes patients the world over and also igniting a revolution in the pharmaceutical industry such that in the next couple of years the corporate objectives of AD&K Pharmaceuticals Inc would have being achieved because the commanding heights of the industry will be reasonably under its control.

According to (Kleinschmidt et al 1991) almost seven out of ten new products introduced unto the market fall out during the first eighteen to twenty four months after its introduction. Going by these startling revelations it is definitely evident that there are serious flaws in the marketing campaigns of contemporary corporations.

In a monumental study, Cooper (1996) exhaustively discusses the changing dynamics inherent in the success or failure that a firm experiences as part of the process of introducing a new product unto any market. Stated differently, a firm’s judgment of success or failure is a direct product of the expectations of the producing firm in relation to the general performance of the product on the market. Drawing an inference from Cooper (1996), it is acceptable to peg success or failure of any product to the establishment of realistic expectations.

New evidence shows a decline in the overall number of new product failures in the last few years. One of the possible reasons for the change in trend is because modern corporations are now towing a safety line in their bid to launch new products on the market. Irrespective of how this is viewed, one thing is certain, there is a steady decline in the level of innovation that accompany new product development. Executives are restricting the risk component to the corridors of line and brand extension because the minimum perceived level of risk it presents. In what follows, there will be an analysis of the real contending issues as they are presented. A major draw back to new product introduction is the visible lack of uniqueness in the development of new products.

AD&K pharmaceutical is built on a solid foundation of research and development with a proven commitment to give the patient premium position. AD&K researches, initiates, produces and markets, medical products across the world. A primary concern of AD&K is not just to manufacture medical products but also to make these products readily accessible to patients of various, social, ethnic, and professional dispositions in a highly transparent and credible manner.

AD&K is into business to serve the world with high quality medical products that are built on the foundations of continues innovation for the wellbeing of mankind.

In doing this, the goals of customer and employee satisfaction are clearly enhanced resulting in increased output that eventually consolidates investor confidence through increased dividends (Kyriazis & Patterson 1996).

The innovative elements in this new product are enormous however within the scope of this presentation suffice to note that the traditional insulin injection only partially manages diabetes Type 2. The most common treatment options actively in use today are insulin glargine and lispro which of course besides the inconvenience of painfully administering alters the hemoglobin content of patients. Besides these main side effects, TIMSUM avoids taking the patient exposing the patient to conditions of hyperglycermia.

Intensive research went into the production of TIMSUM as a way of avoiding all the possible side effects that comes along with the administration of Western orthodox medicine. By its design the product is intended to be portably handy, user friendly, durable and above all effective. Its potency is not altered by environmental temperature, which means that even in temperatures above 48 degrees Celsius the device steal functions excellently. Patients are expected to administer the laser filtration once every three months without the supervision of an expert. There are no fears of using an over dose, because the device is designed to regulate just the specific quantity desirable for the body.

Ethical Issues

Sociologists and psychologists agree that physical ill health represents the most visible form of suffering, players in the pharmaceutical industry are therefore caught in the complex web of ethical dilemmas with regards to the process of marketing their products. In response to this dilemma, AD&K Inc believes that inasmuch as it is committed to realizing its corporate goals the defining framework for its operations has to do with the ability to meet the needs of alleviating the suffering of ill people around the world.  It is on this strong conviction that our marketing objectives do not conflict with decency. In order words the central focus of the marketing policy of AD&K is to offer public service.

Reference

Bowman, Douglas & Gatignon, Hubert. (1995). Determinants of Competitor Response Time to a New Product Introduction. Journal of Marketing Research, Vol. 32, February, p.42-53.

Cooper, Robert G. (1996). Winning at New Products – Accelerating the Process from Idea to Launch. Second ed. Addison-Wesley Publishing Company:Massachusetts.

Cooper, Robert`G. (1988). The New Product Process: A Decision Guide for Management. Journal of Marketing Management, Vol. 3, No. 3, p.238-255.

Dawes, John (1999). The Relationship Between Subjective and Objective Company Performance Measures in Market Orientation Research: Further Empirical Evidence. Marketing Bulletin, Vol. 10, May, p.65-75.

Ehrenberg, A.S.C. (1991). New Brands and the Existing Market. Journal of the Market Research Society, Vol. 33, 4, p.285-299.

Kleinschmidt, Elko J. & Cooper, Robert G. (1991). The Impact of Product Innovativeness on Performance. Journal of Product Innovation Management, Vol. 8, p.240-251.

Kyriazis, Elias & Patterson, Paul G. (1996). The Use of Marketing Research Information in the New Product Development Process: An Australian Perspective. Australasian Journal of Market Research, Vol. 4, No. 1, p.3-11.