In the world the main hub of pharmaceutical industry are in United Kingdom, USA. New Zealand is far away located from these countries and has a population of 4.4 million and has got less number of pharmaceutical industries. The statistics figure show that there were only two compounds developed during 2001 but due to increased in the government funds from $16.3 million in the year 2000-2001 to $43.1 million in the year 2006-2007 the number increased to 12. The success and profit of a pharmaceutical industry depends on the research of molecule, its efficiency and the cost in the market. The main factor for the gradual decline in the profit of the pharmaceutical industry was decrease in the production and increase in the cost of the drug. As …show more content…
For getting success and increasing in capabilities all developed and developing countries are implementing these policies. There is a need to improve pharmaceutical industry in New Zealand for the survival in the global market. (Lockhart et al., 2013). New Zealand pharmacy is going through the process of collecting the waste material and then using them for the manufacturing the products which can be used in the health care. (New Zealand Pharmaceuticals, …show more content…
WHO (World Health Organization) has provided many policies and benefit which encourages the R&D of a pharmaceutical company to discover a molecule or a drug which treat the small and the most complicated diseases. The different types of policies provided by government are; pharmaceutical cost controlling policies, legal policies, investments, knowledge, expertise, modernization and management. The pharmaceutical industry requires balancing a difference between maximizing their own profits and increase in the health standards by decreasing mortality rate and rising their value of life.
The main reason for more development in the pharmaceutical industries in Western Europe and US is due to the attention given by government to them in terms of investments. Government usually invests on researches done in medical research institutes. So to improve the effectiveness, innovation and competition, the best way is to engage with private firms. In the year 2008-2011 government of New Zealand allotted $204.5 million for science and technology. But on comparison with Organization for Economic Co-operation and Development (OECD) the investment of New Zealand was on average basis (Lockhart,
In general the drug manufacturing industry is very risky. In order companies to stay in business they need to research and develop new products. Firstly companies need to develop new compounds, however only one on every ten thousand compounds becomes approved and it takes years to do this. Then only 3 out of 20 drugs make enough revenue to cover their development cost and only 1 out of every 3 drugs generates enough money to cover the costs of previously failed drugs.
As per WHO "The 10 largest drugs companies control over one-third of this market, several with sales of more than US$10 billion a year and profit margins of about 30%. Six are based in the United States and four in Europe. Companies currently spend one-third of all sales revenue on marketing their products - roughly twice what they spend on research and development."
Direct-to-consumer prescription drug ads are dangerous and can have serious effects on the health of the general public. In the article “Pros & Cons Arguments: ‘Should prescription drugs be advertised directly to consumers?’”, the pros and cons of the advertising of prescription drugs are compared. The negative aspects of these ads outweigh that of the positives. DTC prescription drug ads misinform patients, promote over-usage, and pressure medical providers. The counter side argues that these ads inform patients, create a positive impact on patient compliance with medication, and cause patients to confront their doctors.
In Melody Peterson’s “Our Daily Meds” , the history of marketing and advertising in the pharmaceutical industry is explored. The first chapter of the book, entitled “Creating disease”, focuses on how major pharmaceutical companies successfully create new ailments that members of the public believe exist. According to Peterson, the success that these drug manufacturers have experienced can be attributed to the malleability of disease, the use of influencial people to promote new drugs and the efficient usage of media outlets.
Lehman, Bruce. 2003. “The Pharmaceutical Industry and the Patent System”. International Intellectual Property Institute. Pages 1-14.
In America, it has become a battle to earn a high paying job to cope with the expenses of a typical American. It has become even more of a battle for some people to afford medical prescriptions to keep healthy. Health becomes a crucial issue when discussed among people. No matter what, at one point or another, everyone is going to stand as a victim of the pharmaceutical industry. The bottom line is Americans are paying excessive amounts of money for medical prescriptions. Health-Care spending in the U.S. rose a stunning 9.3% in 2002, which is the greatest increase for the past eleven years. (Steele 46) Many pharmaceutical companies are robbing their clients by charging extreme rates for their products.
Threat of new entrants is relatively high. Companies forming alliances are potential rivals. Even if earlier such company was not considered to be a threat, after merging with some research and development company or forming alliance with another pharmaceutical company it would become a rival to Eli Lilly. The threat is however weakened by significant research and development costs necessary to successfully enter the business. Eli Lilly’s focus on a relatively narrow market of sedatives and antidepressants weakens the threat of new entrants, but other products that form lesser part of company’s sales such as insulin and others are exposed to high threat of new entrants. The need of obtaining certificates and licenses also weakens the threat of new entrants. Discussed above leads to the conclusion that threat of new entrants is medium.
The point at which they decide to produce will rest on their own adversity of revenue, risk and effort. The company also needs to know the price elasticity of the curve: the greater the price elasticity, the more a company such as Pfizer will struggle to establish high prices and a high volume. Although monopolies appear damaging at times, there are arguments that they are an advantage to society. Monopolies in the pharmaceutical industry drive companies to pursue research and development (R&D) efforts to gain new patents. According to a 1992 study, among the 24 U.S. Industry groups, pharmaceuticals dedicated 16.6% of their amounts to basic research, while all other industries averaged at 5.3% (Sherer 1307).
"Reducing Demand for Drugs." UN General Assembly Special Session on the World Drug Problem. May 1998. Web. 02 Mar. 2011. .
The pharmaceutical and biotech industries must be free to develop and research life saving medicines and other advancements that will benefit society. If this cannot be done, progress would never be made. People would still be contracting polio a...
With the low success rated private firms invest millions into several produces. When a drug does make it too market and is successful companies need to make-up money spent in development as well as the cost of drugs which did not make it to market. After all investments are taken care of there is still the need for profit. Some are concerned if the United States government implements control over prescription drug cost then private firms will be less motivated to invest in pharmaceuticals development of our fear they would not make their investment back. This would supply pharmaceutical companies with less finances for the research and development process. According to the information collected by Abbott and Vernon a drop in the price of pharmaceuticals would result in significant loss in investment of research and development (Abbott and Vernon). If drug cost were to drop 40-45% the amount of a drug to move from animal testing to human clinics would decrease by 50-60% (Abbott and Vernon). With such high risk and low reward pharmaceutical companies will likely stop or slow research on new technologies and compounds. In 1969 Canada imposed regulations on drug prices (Weidenbaum). After the regulations were imposed there was a decline in new drugs being created (Weidenbaum). This change in the pharmaceutical
There is an increasing pressure within pharmaceutical markets to reduce prices in line with medical budgets, as well as maintaining patent expirations. Being a global brand means disturbance in the operations when the market fluctuates. There is an internal weakness in the pharmaceutical industry, which includes theft and counterfeiting of drugs, and therefore is a weakness of Johnson & Johnson. While Johnson & Johnson has these specified weaknesses they deal with, there are even more opportunities which gives them an advantage for strengthening their position in the market. They already have the strength of meeting a broader range of customer needs with their products falling under three categories. Expiring patents on brand name drugs lead to an increase in the sales of generic drugs, Johnson & Johnson could capitalize upon this opportunity. With diagnostic markets growing, this positions the company in a good place as well as new medical therapies and findings that align with some of the company’s primary capabilities. Threats the company faces is with product recalls, extreme competition in pharmaceuticals that results usually in the first to enter is generally where success is determined. With technology developments, biotech concepts might possibly move the traditional pharmaceutical methods out of the
Pharmaceutical patents are patents for inventions within the pharmaceutical industry. Patents give exclusive rights for an invention for a product or a process of making a product [1]. There are many aspects to patents in the pharmaceutical industry that are both pros and cons; it just depends on what industry you are in. Pharmaceutical companies take out patents so they can regulate the market and restrict competition from other companies. 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. Here we will discuss the pros and cons of patents from the point of view of the pharmaceutical industry, generics industry and the WHO.
Qiu, L, Chen, Z-Y, Lu, D-Y, Hu, H & Wang, Y-T 2010, 'Public funding and private investment for R&D : a survey in China’s pharmaceutical industry ', Health Research Policy and Systems, vol. 12, no. 27, pp. 11
Pharmacists play a key role in patient care and well-being. Not only do quality pharmacists dispense prescriptions to their patient’s, but they also consul them on how to get superior results. By maintain a thoughtful relationship and open communication with patients, pharmacists are able to best access their patient’s needs. As a pharmacist, it would be my goal to have that strong relationship with my patients. My dad personally struggled with taking his prescriptions, as most individuals diagnosed with severe clinical depression do. Clearly it is not his pharmacist’s fault my dad didn’t take his medication before it was too late. His pharmacist simply did his job. However, as a pharmacist, I would go above and beyond, the extra mile, to access