At this price it is highly unlikely that the low risk category patients would opt for it over the $2 heparin. So at this price stand, the primary market would be the high and the very high risk patients. In conclusion, the business model adopted by the medicines company is a unique one. Their pipeline may get infused with earlier stage drugs if Angiomax is a success, as it is not always feasible to find worthwhile drugs in this competitive market. Angiomax needs to be priced aggressively and dedicate itself to the higher risk market segments.
In the book, “International Pharmaceuticals,” Gary Banks delves into the factors of the international pharmaceutical industry. He discusses the roles of g... ... middle of paper ... ...needs, pharmaceutical purchasing must be able to contribute to the efficiency and equity objectives of health sector reform. Social responsibility is a key term to consider whenever discussing any business. The pharmaceutical companies themselves are only focused on creating the highest amount of profit and sometimes that conflicts with the purpose of the product itself. Without the pills the patients are unable to obtain the treatment necessary to overcome the medical issue at hand.
The loss or expiration of intellectual property rights and expiration of co-promotion and licensing rights can have a significant adverse effect on revenue. The products have multiple patents that expire at varying dates, thereby strengthening overall patent protection. Once loss of exclusivity happens, generic pharmaceutical manufacturers will produce similar products and sell at lower price. The price competition can substantially decrease the revenue. Furthermore, healthcare regulation, regulatory environment and pricing and access pressures,pipeline productivity and global economic enviroment are all the relevant factors that collectively determine the performance.
Pfizer growing strategy for the last decade is by mergers, such as Warner–Lambert (2000), Pharmacia (2003), and Wyeth (2009). The firm strategy to grow by mergers can cause even greater potentially additional risks, not just strategic risk. Some people believe when firm is not growing organically, thus cannot sustain its competitive advantage in the long-term. In pharmaceutical industry we believe M&A are crucial to exploit economies of scope (R&D synergies) and importantly, not causing trademark infringement with potentially similar new drugs. On the other side, Pfizer experiences with numerous mergers are seen as an “asset” to reducing risk to minimum.
Pharmaceutical industry patents also have tremendous impact on health care policies due to their influence on the cost of medicine. A new medication can cost in the billions of dollars requiring pharmaceutical companies to incur significant risk. The patent mitigates that risk encouraging medical companies to pursue new, innovation medicines that are essential to medical advancements. The pharmaceutical industry grew rapidly from the early 90’s until 2008. Blockbuster drug sales produced large revenues for their companies leading this period of growth.
Other regulations affect the cost of research and design of the pharmaceutical products. Hence, the companies enjoying patent may make it difficult for other companies to enter the market. Finally, the government support or lack of goodwill as evidenced by subsidies or high tax respectively can stimulate or impede the growth of a firm. Hence, government involvement is critical to the growth or decline of a particular
What is a pharmaceutical company’s main objective? You might think it is to cure people of illnesses or even make people healthier. However new research and public information shows that while they work in health care health is not what they are starting distribute. “A pharmaceutical company, or drug company, is a commercial business licensed to research, develop, market and/or distribute drugs, most commonly in the context of healthcare. 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.
Meanwhile some individuals believe the relationship between pharmaceutical corporations and doctors are too close. Ray Moynihan, an award winning health journalist, claims that these existing relationships need to have its’ limitations. The doctor and industry will be the only ones to profit a change does not come. The goal of this source is to give the viewpoints of both sides in regards to doctor and drug companies’ relationship. It also expresses the idea of not eliminating the relationship but improving them.
13. Perry M. Rogers, Aspects of Western Civilization: Problems and Sources in History. (Upper Saddle River, New Jersey: Prentice Hall, 1996), 300-301. 14. Ibid., p. 301.
The reasoning to create a merger for BP could be their weak retailing position in the United States. BP needed to enlarge its chemical business and it was underexposed in natural gas. BP’s production was relatively low to its competitors. The merger between these two alliances with complementary strategic and geographical strengths will immediately make up for their individual weaknesses. The threat of international competition was posed but the merger alliance will outweigh this threat.