Free Custom «The Pharmaceutical Industry» Essay Paper

Introduction

Globally, pharmaceutical industry was normally characterized with sudden growth, better structural stability, and an industry that had better and high profits with frequent innovations. Exceptionally, this was being experienced by the United States market which was growing fast with major development and advancement being undertaken. A judgment and foresight had been carried out and the United States was by the strong and had to remain a market that was growing so fast. The industry showed better development and remained stable throughout, though there was a disappointment that had been experienced, especially on the stock price with the fall in the overall index.

The industry has been seen many trends emerge since 1990s of which some were to relief the existing pressure on various drug prices. Together they formed a major issue that had been facing the industry and is believed to continue being an issue for quite some time – sales and profit growth of industry. The industry also faced the rising cost and complexity within the development of drugs which in the end resulted to increase in research and development and also improve on industry’s expenditure. Therefore, a lot of research was the main objective but still resulted to very expensive/ costly drugs.

 

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With the market trends the industry was relying so much on its largest companies, which are GlaxoSmithKline and Pftzer, through the prescription of the company’s drugs. Through these trends a number aspect were carried out, that is e-detailing and e-prescribing which the doctors are able to schedule their meetings at any time that is believed to be quite convenient and operate through the internet. Another opportunity that has emerged in the pharmaceutical industry is the use of disease management programs which are designed to show the existing cost effectiveness of prescription drugs that are normally relative to hospital- based care. They are also used for the purpose of combating with poor compliance on drug prescription.

What are the opportunities in the pharmaceutical industry?

There are new opportunities that are emerging within the pharmaceutical industry and some of them are through the channel of advertisement where the internet is being used as a mode of communication and product marketing and selling. These trends consist of e-detailing and e-prescribing and through such channels, doctors are able to schedule their meetings at any time that is believed to be quite convenient and operate through the internet. Another opportunity that has emerged in the pharmaceutical industry is the use of disease management programs which are designed to show the existing cost effectiveness of prescription drugs that are normally relative to hospital- based care. They are also used for the purpose of combating with poor compliance on drug prescription.

What are the major threats to the existing firms in the pharmaceutical industry?

Pharmaceutical industry is facing a number of threats that has been dragging it down-low and this has greatly affected its growth and advancement to meet the current development in the very competitive global market. The following are some of the major threats that the industry is facing; first the industry is currently facing a decline in the research and development productivity. The trend is showing that the industry is becoming less productive and this has resulted to a case where there are no new drugs that should be launched for the purpose of replacing the old drugs. Second, the industry is facing frequent pressures from the external part of the industry. Such pressures consists of price pressure fro the managed care; competition from generic substitutes which are typically priced at 30 to 90 percent discount. This has enforced unhealthy competition from the external world. Thirdly, the industry is experiencing a drug re-importation where drugs from Canada are still finding their way into the United States market through illegal means and to make it worse most of these drugs had initially been manufactured in the United States.