The Issue Of Using Traditional Ways For Running The Pharmaceutical Industry

Improvements in health care and life sciences are an important source of gains in health and longevity globally. The development of innovative pharmaceutical products plays a critical role in ensuring these continued gains. To encourage the continued development of new drugs, economic incentives are essential. These incentives are principally provided through direct and indirect government funding, intellectual property laws, and other policies that favor innovation. Without such incentives, private corporations, which bring to market the vast majority of new drugs, would be less able to assume the risks and costs necessary to continue their research and development (R&D). In the United States, government action has focused on creating the environment that would best encourage further innovation and yield a constant flow of new and innovative medicines to the market. The goal has been to ensure that consumers would benefit both from technological breakthroughs and the competition that further innovation generates. The United States also relies on a strong generic pharmaceutical industry to create added competitive pressure to lower drug prices. Recent action by the Administration and Congress has accelerated the flow of generic medicines to the market for precisely that reason. By contrast, in the Organization for Economic Cooperation and

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

In the video Escape Fire, I was so flabbergasted by the numbers and health outcomes we as a society have let our nation become. One of the most heart-wrenching evidence is, even though our health care industry is so expensive our health outcomes are the worse. 75% of disabilities and dead’s are preventable, according to the film.

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.

The Medicines Company used the saying “one man’s trash is another man’s treasure,” to the next level. It essentially took what other pharmaceutical companies place on the shelves and never use again as their next product which becomes a money maker. The idea is a great idea if it is well executed. The company cannot take just any type of drug and try to execute it pouring in millions of dollars’ worth of research and development because if the product is not chosen carefully, the product will fail. A simple failure for a drug that was not carefully selected, can damage the company’s image and reputation.

The dependency of profits to promote sales to please shareholders and research and development of new products seem to be the mindset of the pharmaceutical industry. It is without question that the pharmaceutical companies only care about making a profit more than they do to help the people of the United States. Pharmaceutical companies and doctors that represent them are only acting in their own best interest; patients are the ones who are suffering the most. With that, new information being produced it is not always being fully disclosed in the fine print, or the other option to the drugs they take, this just only helps fuel business’s.

The pharmaceutical industry continues to be a major driver of trend. While demand for medicine rapidly increases in emerging economies, a growing number of consumers are also analyzing the economic performance of different medicines. These events will heighten the challenges the

Biopharmaceutical companies are known for their innovative discoveries but they will need to be known for their innovative business strategies to survive the Affordable Care Act. The reality of the Affordable Care Act is that physicians no longer control treatment decisions. The Affordable Care Act has been responsible for health care consolidation. Hospital mergers and hospital system formations have increased and the employment of physicians by these organizations has increased. With consolidation, the power of patient treatment has shifted from physicians to management and administration. Treatment decisions that were made by physicians are now being institutionalized. Hospital administrators, pharmacy benefit managers and insurance companies now control patient treatment decisions. Biopharmaceutical companies must understand what clinical and economic data management and administration value. There is increased focus on cost

We analyzed the Indian Pharmaceutical industry on these five forces and the findings of industry competitiveness and profitability are written under the relevant competitive forces.

Pharmaceutical Sciences is a topic that has interested me for a while now. What I can say about this topic is that it will help humanity grow as a whole and keep everyone moving forward. This is a topic where people really need to think about what goes behind the scenes of your average pharmacies. Once people start to think about it, they would start to realize that the science that happens is extremely crucial to mankind as we know it. Without this kind of science, where would humans be today? Would we have the ability to evolve the way we have? How far would humans make it to creating today’s future as we know it? The simple answer to all these questions is

Submitted to the Program of Organizational Dynamics in the Graduate division of the School of Arts and Sciences in Partial Fulfillment of the Requirements for the Degree of Master of Science in the Organizational Dynamics at the University of Pennsylvania Advisor: Richard Bayney This paper is posted at ScholarlyCommons. http://repository.upenn.edu/od_theses_msod/33 For more information, please contact repository@pobox.upenn.edu.

These pharmaceutical companies can increase their prices dramatically without the fear of losing profits because there is a lack of competition in their field. Since there is no other companies in the field to compete prices with, companies like Turing Pharmaceuticals can dramatically increase their price to increase their revenue. Even prior to Turing Pharmaceutical’s price increase, there was no competitors and large profits were being made. What is odd about this situation is that despite the large amount of profits being earned there are no new competitors entering the field. With other industries, when is an observed large amounts of profits being earned, there can be seen a large amount of new competitors entering the market. However, this is not the case for the pharmaceutical industry. According to Donna Sym, there are no new entrants in the pharmaceutical industry, only mergers within the industry (443). There are no new pharmaceutical companies entering the field. Instead the current pharmaceutical companies are buying the ownership of the different drugs from each other. When there is new ownership of a particular drug, most likely there would be a price increase that follows along. As observed with Daraprim, when Turing Pharmaceuticals gained ownership of Daraprim, there was an observed price increase of more than 5,000 percent.

Drug portfolio management is one of the most important determinants of long-term prosperity of research-oriented pharmaceutical companies.

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

Although R&D has been retained by the large pharmaceutical firms, there has been a continuous decline in the R&D productivity. Controlling R&D is imperative to the success of a Pharmaceutical firm. However, as the pharmaceutical industry is maturing, there are diminishing returns to the R&D investment. Fewer and fewer blockbuster drugs are being discovered and therefore R&D is not the most value adding component in the value