PROPOSED MARKETING INITIATIVE TO MITIGATE THE IMPACT OF OFF - PATENT DRUGS IN THE PHARMACEUTICAL INDUSTRY (ACILATEM) FINAL PROJECT In partial fulfillment of the requirements for the master’s degree from Institut Teknologi Bandung By DIDIN SALLAMUDDIEN Student ID: 29323063 (Master of Business Administration Program) INSTITUT TEKNOLOGI BANDUNG March 2025 ABSTRACT PROPOSED MARKETING INITIATIVE TO MITIGATE THE IMPACT OF OFF - PATENT DRUGS IN THE PHARMACEUTICAL INDUSTRY (ACILATEM) By DIDIN SALLAMUDDIEN Student ID: 29323063 (Master of Business Administration Program) This study focuses on the impact of off-patent drugs on Indonesia’s pharmaceutical industry, with a particular emphasis on Acilatem, an innovative antipsychotic drug produced by PT GOMI Indonesia. The research investigates key factors influencing the performance of originator drugs during the patent expiration period. Utilizing internal and external analyses, the study evaluates regulatory landscapes, market dynamics, and competitive pressures within Indonesia's healthcare sector. The study uses frameworks such as PEST, Porter's Five Forces, Competitive analysis, VRIO Value chain analysis and TOWS to identify challenges and marketing initiative to mitigate Acilatem's market share decline after patent expiration. It also explores marketing initiatives tailored to PT GOMI's resources and organizational capabilities, focusing on customer segmentation, product positioning, and value chain improvements. The results suggest a comprehensive marketing initiative to maintain Acilatem's market presence and ensure profitability and sustainability against competition from generics and me- too products. This approach highlights the need for operational efficiencies, strategic partnerships, and ongoing education of healthcare professionals to drive adoption and maintain market leadership in Indonesia's evolving pharmaceutical landscape. Keywords: Off-patent drugs, Marketing initiatives, Innovator drugs, Indonesia Pharmaceutical industry. ABSTRAK PROPOSED MARKETING INITIATIVE TO MITIGATE THE IMPACT OF OFF - PATENT DRUGS IN THE PHARMACEUTICAL INDUSTRY (ACILATEM) By DIDIN SALLAMUDDIEN Student ID: 29323063 (Master of Business Administration Program) Penelitian ini berfokus pada dampak dari obat habis paten di industri farmasi Indonesia, dengan penekanan khusus pada Acilatem, obat antipsikotik inovatif yang diproduksi oleh PT GOMI Indonesia. Penelitian ini menyelidiki faktor-faktor utama yang mempengaruhi kinerja obat originator pada saat masa paten berakhir. Dengan menggunakan analisis internal dan eksternal, penelitian ini mengevaluasi situasi regulasi, dinamika pasar, dan tekanan persaingan di sektor kesehatan di Indonesia. Studi ini menggunakan kerangka kerja seperti PEST, Porter's Five Forces, analisis kompetitif, analisis rantai nilai VRIO dan TOWS untuk mengidentifikasi tantangan dan inisiatif pemasaran untuk memitigasi penurunan pangsa pasar Acilatem setelah masa berlaku paten berakhir. Studi ini juga mengeksplorasi inisiatif pemasaran yang disesuaikan dengan sumber daya dan kemampuan organisasi PT GOMI, dengan fokus pada segmentasi pelanggan, posisi produk, dan peningkatan nilai dari produk. Hasilnya menunjukkan usulan inisiatif pemasaran yang komprehensif untuk mempertahankan eksistensi Acilatem di pasar dan memastikan profitabilitas serta keberlanjutan bisnis dalam menghadapi persaingan dengan produk generik dan produk me-too. Pendekatan ini menyoroti perlunya efisiensi operasional, kemitraan strategis, dan pendidikan berkelanjutan bagi para tenaga kerja kesehatan untuk mendorong penggunaan dan mempertahankan kepemimpinan di pasar industry farmasi Indonesia yang terus berkembang. Kata kunci: Obat-obatan off-patent, Inisiatif pemasaran, Obat inovator, Industri farmasi Indonesia. PROPOSED MARKETING INITIATIVE TO MITIGATE THE IMPACT OF OFF - PATENT DRUGS IN THE PHARMACEUTICAL INDUSTRY (ACILATEM) By DIDIN SALLAMUDDIEN Student ID: 29323063 Master of Business Administration Program Business Leadership Approving, Counsellor Dated on 3 February 2025 Dr. Harimukti Wandebori, S.T., M.B.A. NIP: 197109202010121001 FINAL PROJECT GUIDANCE Unpublished masters’ final project is registered and available in the library of Bandung Institut of Technology, and is open for public, provided that the author owns the copyright in accordance with the intellectual property rights that are applicable in the Library of Institut Teknologi Bandung. Bibliographical references are allowed to be use in a limited manner; however, the citation and summarization can only be proceeded upon the author’s permission and must include the scientific norm of stating this final project as the source. This final project has to be cited as: Sallamuddien, D. (2025): Proposed Marketing Initiative to Mitigate the Impact of Off-Patent Drugs in The Pharmaceutical Industry (Acilatem), Masters’ Final project, Institut Teknologi Bandung. Reproduction or publication of parts or whole of the final project must be under the consent of the Head of Graduate School, Bandung Institute of Technology. motivation. To my sons, thank you for always encouraging me to become a better person and a better father. I am also immensely grateful to my amazing BLEMBA34 classmates, where everyone's collaboration and dedication made a significant impact on our learning experience, who have enriched this experience with their friendship, teamwork, and shared pursuit of knowledge. The bond we have built has made this journey more rewarding and memorable. A special thank you goes to my supervisor, Dr. Harimukti Wandebori, S.T., M.B.A., for his invaluable guidance, constructive feedback, and encouragement. His mentorship has significantly shaped the direction and quality of this thesis. Lastly, I would like to extend my gratitude to PT GOMI Indonesia for providing the essential data and resources that formed the foundation of this study. Their support and transparency have been crucial to the successful completion of this research. ACKNOWLEDGEMENTS First and foremost, I would like to express my deepest gratitude to Allah SWT for His countless blessings, guidance, and strength that have allowed me to complete my thesis. This journey would not have been possible without His grace. To my beloved parents—especially my late mother—who was compassionate, resilient, and selfless. Her belief in my abilities, her kindness to others, and her strength in the face of adversity have always inspired me to persevere. She has always become my source of strength, even in her absence. Her memory continues to inspire me. To my wife, I extend my heartfelt gratitude for her unconditional love, patience, and support throughout this demanding academic journey. Her presence has been a pillar of comfort and TABLE OF CONTENTS ABSTRACT .............................................................................................................................. 2 ABSTRAK ................................................................................................................................ 3 FINAL PROJECT GUIDANCE ............................................................................................. 5 DECLARATION OF NON-PLAGIARISM .............................................................................. 6 ACKNOWLEDGEMENTS ....................................................................................................... 7 1.1 Background ............................................................................................................... 13 1.2 Indonesia Healthcare Landscape ............................................................................... 17 1.3 Antipsychotic Drugs in Indonesia ............................................................................. 18 1.4 Company Profile ....................................................................................................... 20 1.5 Pharmaceutical Product Distribution in Indonesia .................................................... 23 1.6 Buying Process of Pharmaceutical Product in Indonesia ..........................................