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Unformatted text preview: However, once those patents expire the threat rises. For example, generic brands, once the patent has expired other companies can produce a cheaper alternative. However, patents can be issued for certain substances within the drug. Suppliers and Buyers-The bargaining power of suppliers is low. The bargaining power of customers is low in the US market while the bargaining power of customer in some countries is medium for example Canada which the government sponsored Canadian health care has a powerful bargaining power to pharmaceutical companies. We the customer do not get to choose which drug we would like to take. The doctors choose from influence from the pharmaceutical companies or PBMs on which drug they prescribe to the patients. Rivalry among Existing Firms Threat is high, with cheaper alternatives including herbal alternatives. The rivalry is based on price, quality and innovations which continues to evolve in the drug market....
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- Spring '11