Schering: Building Franchises
Executive Summary
Germany's Schering AG is betting it can crack the US market using a franchise of smaller products, rather than relying on a single blockbuster. It reckons this strategy--which few have used before--is best suited to its size and strengths.
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As a large yet specialist firm, Schering must compete in multiple areas. That means developing and marketing differentiated products across a number of fronts--and dealing with the lower-than-average margins that typically come with mixed portfolios. How well the German group overcomes these challenges should be of growing interest to Big Pharma, given the risks of relying on blockbusters.
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