...Q1. Identify the main environment forces currently affecting the pharmaceutical industry. PESTLE analysis is used to help the organization to understand what is the current status of the organization and the external factors that are affecting it, whereas this also helps the management of the organizations to overcome the weak areas organizations by implementing the strategy for the future. Political The policies of the government had a great effect on the regulations and legal issues that defines both formal and informal rules for the industries innovations as compared to the other factors in the form of “parallel trade” as the attention of the industry was an increase in the economic importance’s where the government offered incentives that encouraged the industry to globalization as they focused on pharmaceutical industry to handle the challenges of price control, monopoly and trade. Overtime this led to a wide disparity in prices that exposed the industry to sensationalist newspaper headlines and consumer backlash. Economic The sales in the pharmaceutical related closer to the GDP due to the effect in interest, taxes, inflation and exchange rates that layered down the established market growth in emerging the market for the power of the payers as decision makers. The change that could also affect the foreign currency can also affect the export and imports of the drugs. Patents in other countries pay a lot for the proportion of drug cots themselves that leads to...
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...balThe global pharmaceutical industry THE GLOBAL PHARMACEUTICAL INDUSTRY INTRODUCTION According to Hunter s. Thomas "you can turn your back on person, but never turn your back on a drug, especially when it's waving a razor sharp hunting." The global pharmaceutical industry had done tremendous contribution to mankind, but now pharmaceutical companies are facing tough time in a decade. The case is broken in to different parts which is emphasized on how internal and external factors affecting the industry firstly, the main environmental forces currently affecting the industry through PEST analysis. Secondly, the implications of the changes in business environment that is internal factors through porter's five force theory. Finally, the use and limitations of the tools applied to solve case are discussed. ORIGIN AND EVOLUTION The present pharmaceutical industries are non-assembled and more of competitive but it had emerged in early 19th century in the Rhine valley near Basel Switzerland where dyestuffs were found to have antiseptic properties. Companies like Hoffman-la rochy, Sandoz, Novartis are all started as Rhine based family dyestuff and chemical companies, which are still doing tremendous business even to day. Slowly these chemical companies started making pharmaceuticals and synthetic chemicals and evolved as global players. In early 1940's the industry showed drastic changes such as introduction of penicillin and other drugs. In 1960's industry growing rapidly with...
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...Pfizer and the Challenges of the Global Pharmaceutical Industry Case Study Introduction This report is to summarize the results of Pfizer’s challenges on global pharmaceutical industry and analyze driving factors of competition. I briefly give the industry definition describing the scope of the analysis. The paper has the following major goals: 1) To analyze the current situation, major competition challenges and the prospects of the pharmaceutical industry; 2) To assess Pfizer’s position as a major players of the global pharmaceutical industry and make a comparative analysis of other business practices and financial results using the VRIO method; 3) To recommend Kindler opportunities for further strengthening of their positions by conducting Porter 5 forces. Pharmaceutical Industry Overview Historically, the pharmaceutical industry has developed, produced and marketed one of the most profitable and high margin drugs for many years. This industry has gone through substantial changes in the last few decade and pharmaceutical firms face major challenges, including headline-grabbing litigation, imminent patent expirations, new technologies, rising drug development costs, generic drug substitution, international competitors, and complex public policy issues. Competition Challenges and Prospects A firm must develop a product-market diversification strategy otherwise it may face substantial setbacks once the product loses momentum. It’s important...
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...The Global Pharmaceutical Industry: Conduct an external analysis Introduction The pharmaceutical industry is described by high levels of risky and lengthy R&D process, tough competition for intellectual property, tighter government regulations and powerful pressures on buying power. (Johnson, 2006) In 2011, several blockbuster drugs patent like Lipitor will expire, possibly endangering the revenues of the pharmaceutical industry for the next three to five years. On the global level, the historical supremacy of the US was being challenged with the highest market growth rates recorded in emerging markets. The industry more than ever need to get a handle on the slippery business by offering a true step change in strategy. This case study will critically analyse the Global Pharmaceutical Industry with PESTEL, Porter’s five forces, SWOT analysis and plausible views of industry in the future. PESTLE PESTLE analysis used to help organisation to understand in depth that what is the current status of the organisation and the external factors which are effecting. It also helps to the Management to make strategy for the future and overcome the weak areas of the organization. PESTLE is comprises of political, Economical, Social, Technological, Legal and Environmental factors. Political The both policies (domestic and foreign) of government have a great effect on the industry innovation as compare to the other factors. To get the attentions of firms due to increase the economic...
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...The primary focus of this essay is the analysis of the global pharmaceutical industry and the substantially significant factors that shape this industry; the industry is primarily defined by very few yet critically influential factors; these consist of: governing bodies, the role of corporate social responsibility, and the emphasis put on the industry and firms by the Research and Development process. The most consequential factor placing emphasis on the industry is the governing body, with it being the legislative body and largest purchaser of the industry exclusive of the USA creates a strategic dilemma for the corporations in terms of profit maximization. Patent limitation, regulatory controls, price or reimbursement controls and extensive safety legislations are methods adopted by the government to legislate control and limitations over the industry. These legislations construct a paradigm that the main objective behind the intervention is to keep medicinal costs low as the majority of the population i.e. under 18’s, over 65’s and people primarily on benefits, medical costs are paid for by the government and with the ageing population the expenditure is ever increasing hence the various limitations. Being the legislative body and the largest purchaser gives the government various types of buyer control; the case study implies that the industry is a “monopsony”, giving the corporations very little bargaining power in terms of profit maximization and can often alter the strategic...
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...Title: Strategy, Process, Content, Context, an international perspective Authors: Bob de wit en Ron Meyer Third edition Chapter 6,7,8 and 11 (each chapter also contains two readings) Chapter 6 Corporate level strategy Firms have a lot of growth options, while staying within the boundaries of a single business or broaden their scope even further through venturing into other lines of business and becoming multi-business corporations. Vertical integration: when a firm enters other businesses upstream or downstream within its own industry column. It can strive for backward integration by getting involved in supplier businesses or it can initiate forward integration by entering the businesses of its buyers. Horizontal integration: if the firm integrate related businesses at the same tier in the industry column. (Horizontal) diversification: if a firm expands outside of its current industry. The issue of corporate configuration: the issue of deciding on the best array of businesses and relating them to one another. Determining this can be disentangled into two main questions: 1. What business should the corporation be active in? (corporate composition. 2. How should this group of business be managed? (corporate management). Corporate composition This can be divided into: - corporate scope (how many businesses) - corporate distribution (the relative size of the activities in each business are covered) A common way of depicting...
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...PHRMA Table of Contents 1) Introduction page 3 2) History/Overview of the Industry page 3 3) Economic Characteristics page 4 a) Structure b) Costs c) Demand d) Competition- The Rise of the Generics e) Market Failure, Government Intervention and Price 4) Performance page 7 5) Impact of the Global Economic Downturn page 9 6) Summary page 10 7) Conclusion page 11 Bibliography page 12 8) 1. Introduction This paper briefly examines the current state of the pharmaceutical industry, as well as the economic characteristics, performance, and the impact of the global recession. The industry is made up of several enterprises engaging in the research, development, manufacture and marketing of medicines, vaccines, medical devices, and nutritional products for humans and animals. Though, this multi-billion dollar industry includes large ethical drug multi-nationals (often referred to as Big Pharma), mid-sized specialty pharmaceutical companies, manufacturers of generics, small biotechnology and biopharmaceutical firms, and service companies, 1 for the purpose of this paper, the emphasis will be mainly on drug makers. 2. History/Overview of the Industry The pharmaceutical industry of today is a far cry from its humble beginnings in the nineteenth century of physicians mainly prescribing plant extracts to being technology intensive, dominated by a few...
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...Student Name : Singh, R. : Hariram, E. : Marimuthu, V.K. Student Number : 20054057 : 20101233 : 19852274 Assignment Title : The Global Pharmaceutical Industry. Date : 10 March 2012 Programme : BTECH-MANAGEMENT IV Question 1 Identify the main environmental forces currently affecting the global pharmaceutical industry? PESTEL analysis of the global pharmaceutical industry: Political * Governments set stringent regulation and is a powerful purchaser. * Governments around the world focus on pharmaceuticals as a politically easy target in their efforts to control rising health care expenditure. * Inter-country pricing disparities. Economic * European free trade agreements. * Deregulation of market to allow foreign drugs to compete. Social * Ageing population puts pressure on healthcare systems. * Epidemic of chronic diseases. * Rising consumer expectations. * Payers choosing generic drugs for first-line treatment of common ailments. Technological * Increase productivity, decrease costs and develop new treatment modalities to enhance profitability. * Impact of Internet on traditional business models. * Impact of genetic research on industry. Environmental * Industry operations are becoming more stringent with increasing standards and requirements for environmental protection. Legal * Rigorous regulatory scrutiny governed by legislation. * Legislation enacted to set a...
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...Hikma Pharmaceuticals: an Emerging Markets Multinational By : Radi Haloub and John Anchor Industry Background The emergence of the pharmaceutical industry, in the late 1850s, was a breakthrough during which drug makers created the slogan “You Have a Problem, We Have a Pill” (Lynn, 1993: 5). This slogan reflected that fact that the pharmaceutical business was one of the world's largest industries, in addition to being one of the most profitable ones. Since that time, developments in medicine have not ceased to continue to serve humanity and prevent diseases through manufacturing, developing and promoting medications. The industry is highly controlled by healthcare authorities and governmental regulations, due to medical and safety concerns. For example, governments and authorities obligate firms to obey manufacturing and registration laws, storage conditions, labelling and packaging, product marketing, distribution, public awareness, prescription and patenting (John, et al. 2007), and this is what makes pharmaceuticals unique at the industry level. Pharmaceutical companies are classified according to their level of investment in Research and Development (R&D): the “Principal Companies” are the companies which have large investments in R&D to produce patented drugs, whereas “Generic Companies” produce offpatent drugs. Generic drugs (Generics or Branded Pharmaceuticals) are defined by Brems et al. (2011) as off-patent drugs which are not offered by the original manufacturer...
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...CASE 1 : THE GLOBAL PHARMACEUTICAL INDUSTRY : SWALLOWING A BETTER PILL 1. INTRODUCTION The global pharmaceutical industry is a multinational industry that develops, manufactures, and sells drugs licensed for the treatment. Pharmaceutical companies can sell generic or patent medicines. Health products of the pharmaceutical industry is very often found on the market in the world so that makes the brand of the pharmaceutical industry they are known in the world because of the many products sold are certainly many benefits. As we know there are many companies working in this field. Among the companies that are well known, namely Bayer Healthcare, Johnson & Johnson, Pfizer, Novartis, Hoffmann-La Roche, GlaxoSmithKline, Sanofi-Aventis and many more. The names of these companies are not necessarily familiar to the public. Among the names of global pharmaceutical companies are already very well known, many of which are based in United States. With reasonable price, not too expensive or cheap and very easy to find. Medicinal products from global pharmaceutical companies to be very favorite countries in the world. But of course if explored further, something will have positive and negative, strengths and weaknesses also have external influences whether it be an opportunity or a threat. In this paper will explain a little about the SWOT analysis of the global pharmaceutical companies along with solutions and recommendations. 2. SWOT Analysis SWOT analysis is the analysis...
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...1.0 Introduction: The pharmaceuticals sector is one of the potential as well as capital oriented sectors in Bangladesh. The pharmaceutical industry in Bangladesh is also one of the most developed sectors within the country's economy. Pharmaceutical industry is technologically the most developed manufacturing industries in Bangladesh and the third largest industry in terms of contribution to government’s revenue. The industry contributes about 1% of the total GDP. The pharmaceuticals market is almost self-sufficient in meeting local demand as 97% of the drugs are manufactured locally while the remaining 3% are imported from abroad. The industry manufactured about 5,600 brands of medicines in different dosage forms. Due to recent development of this sector we are exporting medicines to global market including European market. Square Pharmaceuticals Limited is the largest pharmaceutical company in Bangladesh .The Company was founded in 1958 by Samson H. Chowdhury along with three of his friends as a private firm. It was converted into a public limited company in 1991. It is engaged in the manufacturing of branded generic pharmaceutical products and also other ethical drugs and medicines. The company formulation facilities include Pabna Unit, Dhaka Unit, Pesticide Unit, Cephalosporin Unit and Animal Health Unit. Square Pharmaceuticals Limited has extended its range of services towards the highway of global market. It pioneered exports of medicines from Bangladesh in 1987 and has...
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...ratio calculations were taken from the companies’ annual reports using the formulas shown in Exhibit 1. A. Global Pharmaceuticals and Medicine Manufacturing Industry (200 words) The global pharmaceutical and medicine manufacturing industry is one of the most profitable industries in the world. Currently, the industry has revenue of approximately $1.1 billion, with a forecast of growing at an annualised rate of 5.7% to $1.4 trillion by 2020. (Exhibit 4) Some of the reasons for this growth are the increasingly elderly population and rising middle class within emerging markets. Since the global population is aging, there has also been demand for products designed for age-related conditions. Lastly, the emergence of new viruses, pandemics and drug-resistant infections has prompted more research and development (R&D) in the industry, increasing the number of products in the pipeline Concentration in this industry is low, as the large pharmaceutical manufacturers only account for 15% of the market share. The most important issue faced by large pharmaceutical companies globally is the expiration of their patents, which results in the production of generic drugs by other manufacturers at lower price. The last 4 years companies have faced a series of simultaneous patent expiries, leading to severe sales losses of up to $250 billion from 2012 until today. Lastly, global trade and regulations have an impact on pricing controls, which has led companies to alter their portfolios from...
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...2012 STRATEGIC MANAGEMENT TERM PAPER ALOK KEJARIWAL 1PI11MBA13 INTRODUCTION Industry Biotechnology Founded 1978 Founder(s) Kiran Mazumdar-Shaw Headquarters Bangalore, India Biocon Limited (BSE: 532523) is a global biopharmaceutical company with products and research services ranging from pre-clinical to clinical development through to commercialization.[ref 1] Within biopharmaceuticals, the Company manufactures generic active pharmaceutical ingredients (APIs) like Statins and Immunosuppressants that are sold in the developed markets of the United States and Europe. It also manufactures biosimilar Insulins, which are sold in India as branded formulations and in both bulk and formulation forms. Located with R & D in Bangalore and API unit in Hyderabad, India, Biocon has two subsidiaries— Syngene, a custom research organization, and Clinigene, a clinical research organization. Biocon’s presence straddles four main therapeutic areas—Diabetology, Cardiology, Nephrology and Oncology. History Biocon is a fully integrated healthcare company that delivers innovative biopharmaceutical solutions. November 29, 1978 Biocon India is incorporated as a joint venture between Biocon Biochemicals Ltd. of Ireland and an Indian entrepreneur, Kiran Mazumdar-Shaw. 1979—Becomes the first Indian company to manufacture and export enzymes to USA and Europe. 1989—Unilever plc. acquires Biocon Biochemicals Ltd. in Ireland and merges it with...
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...• The Global Pharmaceutical Industry: Swallowing a Bitter Pill 1. Identify the main environmental forces currently affecting the global pharmaceutical industry. PESTLE analysis used to help organisation to understand in depth that what is the current status of the organisation and the external factors which are effecting. It also helps to the Management to make strategy for the future and overcome the weak areas of the organization. - Political: Governments targeted this industry in their effort to avoid high healthcare costs. Strict regulations were established by them. Governments are very powerful and important purchasers of pharmaceutical products. Stringent government regulation and powerful purchaser pressures. Governments around the world focused on pharmaceuticals as a politically easy target in efforts to control rising healthcare expenditure. Inter-country pricing disparities. - Economic: Some markets suffer constraint. Recession causes tax revenues to fall, market contraction. European free trade agreements. - Social: Ageing population creates pressure on healthcare system. This is caused by the increment of the average life expectancy, among many other things. Also, expectations of consumers are higher. Ageing populations create pressure on healthcare systems. Epidemic or chronic diseases (e.g. obesity). More expectations from the consumer. Payers choosing generic drugs for first-line treatment of common ailments. - Technological: The new modern communication...
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...Report analyzes the US pharmaceutical industry Report analyzes the US pharmaceutical industry Published on April 9, 2010 at 12:04 PM Research and Markets (http://www.researchandmarkets.com/research/eded8d/pharmaceutical_ind) has announced the addition of the "Pharmaceutical Industry in the United States" report to their offering. Over the past decade, pharmaceutical companies have pushed the scientific envelope, working at the cellular and molecular levels to dramatically advance the treatment of disease. Between 1995 and 2005, more than 300 new drugs, biologics, and vaccines that prevent and treat over 150 conditions were approved by the FDA. The FDA also gave the go-ahead for numerous new indications for previously approved medicines, allowing physicians to tailor treatment strategies to meet a patients individual disease status, past medication history, side effect tolerance, and preferences. The US pharmaceutical industry is a highly globalized industry, dominated by multinational companies that engage in significant business activity in many countries and whose products are distributed and marketed worldwide. The industry has undergone dramatic structural changes over the past few decades, with the rise of the biotechnology sector, substantial growth in demand driven by demographics and substitution away from other therapeutic modalities such as surgery, and increased competition from globally active generic manufacturers. The pharmaceutical industry is under mounting scrutiny...
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