The U.S. health care costs in 2013 was 17.1% of the gross domestic product. The significance of this is that it is the second highest only to Tuvalu, which only has a population of 9,876. This high cost of pharmaceuticals leaves the people of the United States with an economic burden. Although being a country that is a world leader, the U.S. continues to struggle in the ability to provide sufficient medication to everyone in need of them. In the book, “International Pharmaceuticals,” Gary Banks delves into the factors of the international pharmaceutical industry.
The Application of iPSCs in the Pharmaceutical Industry The Crisis The pharmaceutical industry has been facing a major crisis over the past few years, predominately due to patent expirations and a decrease in pipeline production. Pharmaceutical companies need to find a way to sustain their profitability as patents on their blockbuster drugs expire. To put this in perspective, products such as Lipitor and Plavix generated $10.8 and $9.7 billion, respectively, in a single year for Pfizer and Bristol-Meyers Squibb (1). Once the patent for these drugs expired, there was a rapid decrease in revenue for these companies due to generic competition. These aren’t the only companies facing this issue, however, the entire industry copes with the loss of exclusivity once the patent for their product expires and generics become available.
Evolution of marketing The marketing of prescription drugs has always been a controversial topic due to the sensitive nature of the product; hence heavy legislation hugely affects the promotion of a drug. The major players of the industry are huge multinationals, so must be aware of the different requirements of each market, not just legislation but also the needs of customers and the social norms of the environment which they reside. There are many trends that affect the market of pharmaceuticals including more knowledgeable consumers, the aging population, the impact of the financial crises, and rapid scientific advancements. Marketers need to consistently adapt their strate... ... middle of paper ... ...EM and pharmaceutical advertisements: it’s time for an end | Canadian Journal of Emergency Medicine. [ONLINE] Available at: http://www.cjem-online.ca/v11/n4/p375.
Lately, there have been findings with legal issues concerning pharmaceutical products. Now, certain companies have been scrutinized much more closely than ever before by consumers and, more importantly, government agencies. Drug innovation and development is expensive and only a small percentage of discovered compounds beco... ... middle of paper ... ...ould have gotten more money for drug research if people in third world countries were not poor. Researchers today are having trouble funding orphan drugs. Orphan drugs are drugs that are for diseases that are rare.
They can deal in generic and/or brand medications.” Although they are a vital part of any economy and health field there are many problems with in the medical industry such as (a) the focus of money, (b) drug abuse, (c) over consumption and (d) severe side effects. Pharmaceutical companies should be better managed and regulated in the United States. There is an unethical balance in how the industry is controlled. They are in it for profit not treatment.
Pharmaceutical Industry: Governance-Association Standards Two sided coin aspects of Governance in the Public Pharmaceutical Sector Pharmaceutical products are the key element of health systems that helps the community. Despite pharmaceutical being a huge multi-billion dollar industry. This element of governance describes the negative and positive sides of the pharmaceutical industrial parameters. Good governance is one of the factors for economic growth and sustainable development at almost all sectors of society. The chaos in such negative parameters, are the prime drawbacks and violence that are failed and clearly pictures the results that prevents bad governance exist.
On top of the regulatory requirements of governments, they govern their sales and marketing activities through company policy, on Pharmaceutical Marketing and Promotion Activity, and through industry and company marketing codes. Companies believe that it is important to work with governments to contribute to constructive debate on issues surrounding pharmaceuticals and healthcare. Where legal and appropriate they make political donations as part of this engagement. All of their interactions are governed by the Code of Conduct and appropriate Corporate Policies. Most have company wide auditing in place to fully investigate suspected breaches of their company standards and take appropriate disciplinary action, including dismissal where appropriate.
This can delay or compromise medical procedures. This can cause medication errors. A management approach that includes clear policies as well as procedures for gathering information, making a decision, collaborative efforts and timely communication need to be established to handle such drug shortages in an effective manner (Ventola, 2011). Drug shortages have been the most challenging for sterile injectable drugs. This is because they are more complex to produce and are more likely to have problems with the manufacturing process.
By obtaining patents pharmaceutical companies also attract investment. In addition to this pharmaceutical companies can also regulate the price of the drug as they will be the only company selling that drug. However these aspects of patents can adversely affect the generics industry. The generics industry cannot make or sell drugs that are patented but once a patent licence expires, both the generics industry and the WHO see increased benefits as drugs become more widely available around the world (i.e. developing countries) at a lower price.
As of 2015, 15% of the population is without insurance; one of the major reason is due to the people not having sufficient knowledge on their eligibility. The Affordable Care Act (ACA) that was implemented in 2010 has made an impact in the healthcare system in the US. It has also drastically reduced the number of Americans that does not have paid insurance. In 2014, it has also imposed a tax penalty on companies of a certain size that does not provide insurance and individuals without existing personal insurance. This however has caused many small and medium-sized companies to go bust, benefiting only the major multi-corporation companies that are able to provide internal insurance.