Novo Industri, located in Denmark, produces pharmaceutical products and industrial enzymes. Its most important pharmaceutical product is insulin, accounting for over 80% of the company´s pharmaceutical sales. Novo is the world leader in industrial enzymes, with 50% of the world market.
The company “intended to be an international leader in industrial, biochemical and health care products, process and systems”, and believed that leadership could be achieved by continuing Novo´s tradition of innovative advances. Novo´s heavy investment in research resulted in improvements in insulin technology. The Monocomponent porcine insulin had impurity levels of only one-tenth that of competing brands. Sales of this product accounted for 80% of the company´s insulin sales in 1981. Novo developed semi-synthetic human insulin in 1980.
Novo products are sold in 120 countries with 97% of sales being outside Denmark. In 1981, Novo held one third of the world insulin market, 60% of the western European market, 70% of the market in Japan, and 30% of the UK and Australian market. Novo also had a 4% participation in the U.S. market. Novo´s sales increased more that 40% in 1981.
Insulin Market and Industry Analysis
The insulin market is not uniform worldwide. In the United Estates, insulin was sold without a prescription. Pharmacists therefore had some influence on the choice of insulin brands. As a result, price and promotions aimed at the customer or distribution outlets were more important in this market tan elsewhere. In Western Europe, insulin was generally a prescription drug. A new prescription was needed to switch brands. In Japan, doctors bought insulin directly and resold it to patients for a profit. Therefore in these markets general practitioners and patients were less aware of differences among insulin products. In some countries, such as France, pharmaceutical manufacturers had to do some production in order to sell there.
In all countries,...