Established brands

Established brands In Chinese, “Crisis” is expressed in two words: “Danger” and “Opportunity”, meaning hope lies beneath difficulties and there is great potential of beneficial revolution instead of slow evolution if the situation is handled properly. In a way, many pharmaceutical companies are currently in a certain state of “Crisis” in the face of various internal and external forces. Internal forces include soaring R&D costs, sluggish sales growth, shorter product lifecycle as well as patent expiry, product withdrawal, poor product pipeline, and etc. External forces include competition, uncontrollabe sociopolitical environment, and pressure from government, healthcare insurer, and patient to contain price. Together, these difficulties have seriously dented Pharma’s recent financial performance. It was predicted that Pharma industry would only deliver no more than 5.3% growth rate between now and the year 2010. In contrast, the FT Pharmaceuticals index rose by over 350% between mid-1993 and mid-2000.

Convey IP strengths = # and types of patent assets, strategy, license revenue and transactions, competitive IP position and successful enforcement actions

"Old economy" companies remain old economy companies because they are not able to educate their inventors of the value of IP. Companies in B2B space like Fujitsu, TI may be power houses of IP but valuations suffer because of the lack of communication.

Similarly, consumer brand companies hold huge large amount of IP (including Patent rights)but their public image is that of marketing rich company. e.g. Philip Morris, General Foods, Mc Donalds. P&G spends more on R&D than 3M, Compaq and Merck.