Global Pharmaceutical Industry Analysis

U.S. based companies hold rights to most of the world’s rights on new medicines and holds thousands of new products currently being developed. As of 2012, the industry helps support almost 3.4 million jobs in the U.S. economy. It is also one of the most heavily R&D based industries in the world. In the United States, the environment for pharmaceuticals is much friendlier than other countries around the world in terms of pricing ability and regulations. Both the Pharmaceutical and Biotechnology industries have experienced significant growth in the past year with year-over-year increases of 13.02% and 34.69% respectively. It is an even more striking when looking at the past five years considering both have beat out the S&P 500 with pharmaceuticals increasing an additional 31.44% and the biotechnology sector besting an astonishing 269.3% more return than the

The high prices set by pharmaceutical companies for drugs allows the companies to continue researching, developing, and producing new drugs. As new diseases are discovered, new medications must be discovered in order to treat them.

Even though the pharmaceutical industry had been highly profitable and contributed about 40% OF Ciba-Geigy’s revenues in profit, there were some trends, which were worrying. The government had attempted to reduce a cost of healthcare thus; pressure to lower costs was mounting on industrialized countries. There were restrictions to introduce new products, and price control became stricter while limiting the freedom of doctors to prescribe medications. Patent controls were becoming reduced, and the pharmaceutical industry was becoming increasingly criticized. These trends later made the industry to

First off, Big Pharma has a huge influence over the medical world and this has proved harmful to this industry for many reasons. Big Pharma companies have bought their way into the world of regularly used medications despite all the baggage they carry. Even with using many forms of bribery, “the $310 billion pharmaceutical industry quietly buys something far more influential” than anything they have to offer to the physicians they work with, and that is “the contents of medical journals and, all too often, the trajectory of medical research itself” (Washington 1). By buying their way into medical journals, these pharmaceutical companies buy the ability to advertise their products to thousands of physicians, even if these products have never been properly tested. This can be very misleading when a product, which may be very ineffective or even dangerous, is advertised in a very credible medical journal solely because the journal is heavily dependent on the profits attained from advertising for the company. In a 1992, for example, editors from the medical journal Annals of Internal

Within the last ten years a new topic has been on the discussion board. The topic, biosimilar drugs. Biosimilar drugs are drugs that are similar to biologics, but does not have the exact same chemical make up as biologics (). The reason for this is the fact that biologics are large scale molecular drugs that require a complex system to make the biologics. Biosimilar drugs would act like how generic drugs do in today’s market. One of the key goals of biosimilar drugs is to lower the overall cost of a medication (). The best way to describe it is the amount of money spent on a biologic as a patient is extremely high and the cost of a biosimilar drug would save the patient money by charging less.

The pharmaceutical industry consists of intensive marketing, production, and research meant to develop drugs that provide the entire world with the capabilities to cure infectious diseases and support daily needs. An aging world population and greater work loads has given an incentive for pharmaceutical firms to rigorously produce and sell numerous variations of drugs to treat cancer, allergies, diabetes, and pain. Some trends to be considered include: greater technological improvements, cheaper drugs, and increased investment/R&D spending. Technological improvements have guaranteed higher purities and cheaper drugs. However, increased research has dramatically driven patented drug prices to an all high premium; Byetta, a type 2 diabetes pen

While recent advancements in modern medicine have turned it into a field of competition between generic and name-brand drugs, these drugs show very slight differences in ability while they have a large difference in price. The FDA is in charge of overseeing the creation of these generic and name brand drugs. Too much diversity in their results is unacceptable to FDA so they keep a close watch on the makeup and effectiveness of the drugs and how they impact the human body. Along with the differences in their chemical makeups shown by the results of each drug there are the social issues that accompany the name-brand and marketed drugs vs. the generic drugs which are never advertised and only sold. The idea that and almost identical product

In the last two decades, Indian pharmaceutical industry has expanded significantly. It has more than 250

One way medical advancements have improved lives is using the generic medication. This has saved the U.S. $254 billion

The opening up of this industry will require huge investment and manpower. Pharmaceutical Industry has huge profit margin and demand throughout the year, especially in India as it hold one-seventh of the world’s population. The global pharmaceuticals market is worth

The Australian pharmaceutical marketplace comprises of many differing firms across the numerous sub-industries relating to the production and distribution of medications. Pharmaceuticals are one of Australia’s major manufactured exports with $3.9 billion in 2012-2013, employing approximately 16,500 people. The industry receives substantial support from the Australian Government through both the Pharmaceutical Benefits Scheme and the research and development tax incentive.

The research and development of the pharmaceutical industry is very important as the industry relies on it to develop new products to maintain and sustain the growth of the industry (ALRC 2014). According to the Australian Government Law Reform Commission, every year, the total spending in research and development in pharmaceutical industry, which includes drug discovery, pre-clinical testing and clinical trials on drugs is around $300 million (ALRC 2014). Mergers and acquisitions are intensifying in the global pharmaceutical industry, especially over the last 10 years. With factors like exorbitant research and development costs, the relatively shorter product life cycles, and the rarity of discovering a new life-changing drug acting as catalysts, leading pharmaceutical companies now have more cause to step out and look for external collaboration. This results in an increasing number of smaller biotechnology companies merging with bigger pharmaceutical companies (The

According to the case, written by Holland & Batiz (2004), the pharmaceutical industry has its roots in 19th century but the R&D was firmly established during 1940s and 1950s. This means that throughout that time pharmaceutical companies acquired practise and experience which helped them to obtain a competitive advantage (Porter

From rising customer expectations, to poor methods of research and development, there are many reasons to modernize the current business model of the pharmaceutical industry. The major issue is the fact that experts rely on traditional methods regarding management and a business model. The pharmaceutical industry is now facing the reality that other industries have previously dealt with, where companies have been forced to remodel themselves. This is not an easy task, as the landscape of the cultural industry has to fundamentally change. This in turns affects each level and individual in the corporation. There are many variations as to why modifications are

The pharmaceutical industry facing a rapidly changing environment, which offers both opportunities (such as harmonisation of regulatory requirements) but also threats (more discriminating purchasers);