Targanta Therapeutics hitting a moving target Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Targanta Therapeutics hitting a moving target Case Study Solution

Introduction:

Targanta Therapeutics Company was formed in theyear 2007, after the management made the company public by an initial public offering. Headquarter of the company is located in Cambridge and the company also operates in other parts of the world such as Indianapolis, Montreal and Toronto. The Targanta derives its majority of revenue from the sale of just one antibiotic Oritavancin, it can be said that Oritavancin is very effective and is capable of defeating various kinds of diseases and bacteria. The drug was originally invented by Eli Lilly and the Company in the mid-1990s, the management of Eli Lilly was so enthusiastic about the drug that they started the production process very quickly after the trials. However, Lilly decided to exit this segment of the market in order to take advantage from the more lucrative opportunities.

Eli Lilly licensed the rights to develop the drug to InterMune, soon after the development of the drug, the management of InterMune noticed that the drug was causing various side effects to the users which forced the management to withhold the production of the drug. InterMune further licensed the Oritavancin to a Montreal based company named PhageTech, this company was later renamed as Targanta.

In order to reduce the risk associated with the production, distribution and consequences of the Oritavancin the management of Targanta wanted to implement various de-risking strategies. The management of Targanta critically analyzed the manufacturing process and reviewed the data received from 2000 clinical trials. Furthermore, the management of Targanta wanted to consider various strategies while waiting for the FDA’s decision.

Targanta Therapeutics hitting a moving target Harvard Case Solution & Analysis

Problem Statement:

Despite the positive growth prospects of the drug, the management of Targanta was finding it very difficult to commercialize the product quickly, same problem was faced by the previous license holders such as Eli Lilly and InterMune. On the other hand the Oritavancin itself fails to deliver the benefits which are expected by the licensees previously and many trials indicated that there might be certain adverse side effects of the drug which mainly includes swelling and inflammation.

Market Access Strategies:

It can be said that the need for the proper market access strategies is very high as compared to the previous days because for the pharmaceutical companies, the increasing power and awareness. It is very crucial for the pharmaceutical manufacturing organization to develop market access strategies in order to ensure the long-term success in their field. In addition to this, the competition in the drug manufacturing industry is increasing drastically which also directly increases the need for the market access strategies. Targanta is not exempted from this need of the market access strategies and in order to sustain the competitive advantage for longer period it is very important for Targanta to implement proper market access strategies. (Sobrio & Mesnil, N/A)

On the other hand the market access strategies are also very difficult to implement in the modern economic environment as compared to the previous periods in which the competition was low and the market was not so fragmented.(G.B.I Research)

Market access strategies is mainly concerned with providing the right product to the right customer, at the right time, at the right price. It also aims to ensure that all the suitable patients and consumers receive adequate benefits from the product, which would ultimately increase the quality of the product and improve the reputation of the manufacturers. (Forcellina & Akannac, 2013)

Types of market access strategies:

There are many kinds of market access strategies that are proved to be very beneficial for various organizations especially for the pharmaceutical manufacturers. Some of which are described below.

Cause marketing:

In this marketing strategy the company invests heavily in the social causes and works for the betterment of the society as a whole. This strategy is very fruitful for the pharmaceutical companies because of the direct impact of their products on the society. Many pharmaceutical companies are pursuing this marketing strategy, the reputation of the companies increase drastically as the general population perceives it positively and increase their business dealings with these companies in return for the favor they are offering to the society.

Relationship marketing:

This marketing strategy mainly deals with the relation of the company and the customer. Under this marketing strategy the company directly interacts with their potential and current customers and take their views and feedback regarding the products and services of the company. This marketing strategy is also very favorable for the pharmaceutical companies because they can greatly incorporate the changes in their products, if the customers are not satisfied with their products. Furthermore, this strategy is also favorable because of the fact that whoever is affected by the medicine can advise more accurately on the factors which are unfavorable of the products. (Yodiz, N/A)

Talk in the language of Payer:

As majority of the pharmaceutical companies operates in globally, it is very important for the pharmaceutical companies to communicate with the local customers in their native language that they understand and it can also increase the level of interaction of the customers. On the other hand the customers may also perceive it as a positive approach by the company showing them that the company is loyal to them and wants to listen to their views and feedbacks. Although implementation of this strategy might be very expensive but it can be said that it is very effective to increase the reputation and customer loyalty. The companies can develop an application in which all the customer’s language is embedded which can be considered as one of the most effective way to implement this strategy. (Piu, 2014)..................

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