Healthy Skepticism Library item: 9490

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

Publication type: Journal Article

Monk MR, Smith M.
Product portfolio analysis: SmithKline to SmithKline Beecham
Journal of Pharmaceutical Marketing Management 1990; 4:(4):85-96

Abstract:

A portfolio analysis technique used by the Boston Consulting Group was applied in a comparison of SmithKline and the SmithKline Beecham Corporation resulting from the 1989 merger. National Disease and Therapeutic Index data were used to calculate percentage of market share and market growth for 18 SmithKline and 5 Beecham prescription drug products. While SmithKline had more than 3 times as many products in the analysis as Beecham, 50% of the products were calculated to hold less than 10% of their respective markets. In contrast, 3 of Beecham’s products held a minimum of 38% market share. Furthermore, 2 of SmithKline’s drugs were found to be in highly declining markets, while none of Beecham’s products were determined to be in negative growth markets. It was concluded that the portfolio analysis supports the idea that Beecham has been the driving force and the company in the strongest position to dictate terms.