...The Pharmaceutical Industry 1. Origins and Evolution The modern pharmaceutical industry is a highly competitive non-assembled1 global industry. Its origins can be traced back to the nascent chemical industry of the late nineteenth century in the Upper Rhine Valley near Basel, Switzerland when dyestuffs were found to have antiseptic properties. A host of modern pharmaceutical companies all started out as Rhine-based family dyestuff and chemical companies e.g. Hoffman-La Roche, Sandoz, Ciba-Geigy (the product of a merger between Ciba and Geigy), Novartis2 etc. Most are still going strong today3. Over time many of these chemical companies moved into the production of pharmaceuticals and other synthetic chemicals and they gradually evolved into global players. The introduction and success of penicillin in the early forties and the relative success of other innovative drugs, institutionalized research and development (R&D) efforts in the industry 4. The industry expanded rapidly in the sixties, benefiting from new discoveries and a lax regulatory environment. During this period healthcare spending boomed as global economies prospered. The industry witnessed major developments in the seventies with the introduction of tighter regulatory controls, especially with the introduction of regulations governing the manufacture of ‘generics’5. The new regulations revoked permanent patents and established fixed periods on patent protection for branded products, a result of...
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...environmental factors are affecting big pharmaceutical companies strategically? Introduction Johnson and Scholes (2002) p10 define strategy as “the direction and scope of an organisation over the long term, which achieves advantage for the organisation through its configuration of resources within a changing environment and to fulfil stakeholder expectations.” The purpose of an environmental scan is to develop a list of diverse variables from an uncertain and complex world to offer actionable responses and in so doing allow a structured framework for defensive or offensive actions. The Pharmaceutical Industry environment is an ethical drugs industry aimed at providing beneficial products and services for human consumptions as well as chemical medicaments and biotechnology. The 21st century has brought about changes within the pharmaceutical industry. The pharmaceutical industry today is highly competitive non-assembled global industry. To define the non-assembled aspect of the industry is where manufactures components parts or materials are relied on for example glass, woodwork and chemicals. It was in the sixties and seventies that the pharmaceutical industry was to expand rapidly as it was a period referred to as the spending boom. Research and development (R and D) was also a major investment and trust which was provided for Universities and education institutions. Pencillin which was the major discovery in the pharmaceutical industry in the 40’s, which led to research and...
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...This report is to be submitted as "2008 Korea Pharmaceutical Industry Directory" as part of the "Actual analysis of Korean pharmaceutical Industry", Korea Health Industry Development Institute(KHIDI)'s own project. December 2008 ■ ■ ■ • ⅰ Chapter 1. Outline of The Project 1. Objectives and Background of Investigation ◦The existing directory book has indicated limitations in promoting Korean pharmaceutical industry internationally or domestically, failing to offer practical help. ◦For this reason, this investigation is to have a thorough grasp of ranges of business and current status of investments and technology by pharmaceutical and companies to utilize and in to strengthen their industrial by competitiveness promoting them overseas collecting and offering basic data needed for promoting transfer of technology with home and abroad institutions. ◦Also, necessity for systematic and detailed data of industrial current status that can be utilized by companies who are making commitment for the development of pharmaceutical industry. 2. Targets and Contents of Directory Book 1) Targets for directory book •Korean Pharmaceutical companies: 81 companies. 2) Contents of directory book •Investigation items 3. Method and Way for Utilization 1) Method □ Ways to select investigation targets and to promote them were developed through consultation from consultation committees and domestic pharmaceutical companies (including unlisted ones) ◦Investigated...
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...Electronic copy available at: http://ssrn.com/abstract=2065057 Financial Ratio Analysis of Square Pharmaceuticals Limited Asif Ahmed ACA Trainee Accountants KPMG in Bangladesh Rahman Rahman Huq Chartered Accountants 9 Mohakhali C/A Dhaka – 1212. ACA Student The Institute of Chartered Accountants (ICAB) CA Bhaban, Kazi Nazrul Islam Avenue Dhaka, Bangladesh Contact E-mail: asif.ahmed0001@yahoo.com Electronic copy available at: http://ssrn.com/abstract=2065057 Financial Ratio Analysis of Square Pharmaceuticals Limited 2 of 24 TABLE OF CONTENTS Page No. Executive Summary 3 Chapter 1 Introduction 4 - 6 1. Introduction 4 2. Objectives of Study 4 3. Scope of Study 5 4. Methodology of Analysis 5 5. Limitations or Problem Statement 6 Chapter 2 Key Financial Highlights 7 - 11 2.1. Overview of the Organization 7 2.2. Key Financial Highlights 7 Chapter 3 Ratio Analysis 12 - 19 3.1. Liquidity Ratio Analysis; 12 3.2. Asset Management Ratio Analysis; 13 3.3. Debt Management Ratio Analysis; 15 3.4. Profitability Ratio Analysis; and 16 3.5. Market Value Ratio Analysis. 17 Conclusion 20 Recommendations 21 Bibliography 22 Annexure 23 Financial Ratio Analysis of Square Pharmaceuticals Limited 3 of 24 EXECUTIVE SUMMARY This paper is mainly an analytical outcome of financial ratio analysis of Square Pharmaceuticals Limited and pharmaceuticals industry. Eleven (11) ratios are selected to judged the various aspects of efficiency of the company, including –...
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...INTRODUCTION The 1990’s saw a highly fragmented pharmaceutical industry with many competitors. The top ten firms in pharmaceutical sales held 28% market share in mid-1995. The top 50 firms held just over 60 percent. Changes were occurring in the pharmaceutical industry in the 1990’s. With pharmaceutical benefit management (PBM) firms working to reduce costs, pharmaceutical firms held less power. PBMs sought to reduce the number of supplier firms by only purchasing from the largest firms and requiring doctors to prescribe drugs from approved lists called formularies. Many pharmaceutical firms saw mergers as a means of reducing costs and increasing market share. On August 20, 1995, two pharmaceutical companies by the names of Upjohn Company and Pharmacia AB announced that they were forming a “merger of equals.” Upjohn Company, incorporated in the U.S., and Pharmacia AB, incorporated in Sweden, would combine to form the ninth largest pharmaceutical company in the world. PHARMACEUTICAL INDUSTRY: PRE-MERGER The pharmaceutical industry at the time of the case was very attractive. The attractiveness of this industry can be determined using Porter’s Five Forces, a model for industry analysis. This model looks at barriers to entry, supplier power, threat of substitutes, and buyer power as they relate to industry rivalry. BARRIERS TO ENTRY The pharmaceutical industry has high barriers to entry. A company should expect to spend up to 15 years and up to $600 million to bring...
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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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...Porter’s Analysis: Pharmaceutical Industry | Submitted to Dr. Grace Khoury | By: Asem Masri. Student No. 1125420 | 11/6/2014 | 1. Contents Introduction 1 Porter’s Five Forces Analysis 1 Threat of new entrants 1 Rivalry among existing firms 2 Threat of substitute products 2 Bargaining power of buyers 3 Bargaining power of suppliers 4 Relative Power of other stakeholders 4 Conclusion 5 References 5 Introduction The pharmaceutical industry in Palestine is one of the most profitable industries, with the Palestinian companies owning 55% and 30% market share of the private and public sectors respectively, and high potential of growth even more, in a market estimated at around USD 100 million. All these companies mostly reproduce generics that are seen as commodities rather than differentiated, and highly depend on preferred agreements with pharmacies, doctors, hospitals and medical centers to serve both as their marketing and distribution channels. All operating firms in the industry are publicly traded companies, are highly controlled and regulated, depend heavily on technology and require vast financial resources. Because of the large size , high complexity and vast financial requirements of the industry, it won’t be a straight forward task to decide on whether this industry is attractive to enter or not, without performing proper STEEP and industry analysis. In this case, we will focus on performing pharmaceutical industry analysis using Porter’s...
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...Topic: what is Medicinal Chemistry in the 21st century? | Name Kambura N. 201405016 | Lecturer:B.A. RickertsF Group | TABLE OF CONTENTS 1………………………………………………Cover page 2………………………………………………Introduction: What is Medicinal chemistry? 3……………………………………………...Body: The pharmaceutical industry Global generics Chemistry in a nutshell 4………………………………………………Conclusion End of academic essay In Medicinal chemistry , the chemist attempts to design and synthesize medicine or a pharmaceutical agent which will benefit humanity .Additionally Oxford define medicinal chemistry as the application of chemical research techniques to the synthesis of Pharmaceutical agent. Question here is how is medicinal chemistry applied in thee most advanced centaury off technology, widgets and gadgets? This text is aimed to clarify just that. A pharmaceutical supplement is a compound also commonly called a `drug` but according to Goeltze(2000) who is a chemist at the University of Ukraine gave a general opinion in an interview, stating that many scientist dislike the term `drug` since society views the word with suspicion. With media headlines such as “drug trafficking In Namibia” or “Drug Addiction sweeps city streets”, this is hardly surprising .However, Medicinal Chemistry suggests that a distinction can be made between drugs which are...
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...Corporate Development Strategies Faculty 02 – Economics and Business Administration Johann Wolfgang Goethe-University Frankfurt Industry analysis of the pharmaceutical industry Written assignment Submitted by: Heiko Kreuz, 4897736, s5706079@stud.uni-frankfurt.de Janine Seelinger, 4896818, s1010710@stud.uni-frankfurt.de Dana Winkler, 4497800, s1099437@stud.uni-frankfurt.de Supervisor: Prof. Dr. Lars Schweizer November 6, 2015 Table of contents 1 Introduction...........................................................................................................................1 2 Theoretical framework of Porter’s Five Forces ........................................................1 3 Industry analysis by means of Porter’s Five Forces ................................................2 3.1 Competitive rivalry ................................................................................................... 2 3.2 Bargaining power of suppliers.................................................................................. 2 3.3 Bargaining power of buyers ..................................................................................... 2 3.4 Threat of substitutes ................................................................................................. 3 3.5 Threat of new entrants .............................................................................................. 3 3.6 The regulators ............................
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...An Overview of the UK Pharmaceutical Industry The Pharmaceutical Industry in the UK is the second largest contributor to Gross Domestic Product behind Financial Services. There are several very big players in the UK with GlaxoWelcome & SmithKline Beecham who merged in January 2000 to become Glaxo SmithKline and AstraZeneca being the two largest UK based companies. Almost all the other major pharmaceutical companies operating in the UK have undergone or are in the process of undergoing mergers and acquisitions, including AstraZeneca, Pfizer and Warner Lambert, Shire and Roberts, and Celltech with Chiroscience and Medeva. The UK pharmaceutical market is a successful, research-driven, high-technology industry. The UK market is dynamic and increasingly competitive and, it ranks third after Germany and Switzerland in the global pharmaceutical industry rankings in terms of trade balance. According to the Association of the British Pharmaceutical Industry (Abpi), the industry employs around 75,000 people, of whom over 25% are graduates. Introduction to AstraZeneca AstraZeneca is one of the world’s leading pharmaceutical companies, with a major presence in the UK. Their business is focused on providing innovative, effective medicines that make a real difference in important areas of healthcare. Other facilities in the UK include research and development, sales and marketing and manufacturing. In 2008 AstraZeneca’s total contribution to wealth creation was £4.1 billion...
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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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...Teva Pharmaceuticals LTD Clinton Stucker American Military University Abstract In this paper we will discuss the competitive advantage of Teva Pharmaceuticals as well as Teva’s resources to continue to grow and remain dominant within the pharmaceutical industry. As industries evolve it is important for companies to evaluate their strengths and weaknesses in order to maximize their potential to succeed. In this paper we will evaluate Teva’s greatest strengths and resources that will enable the company to continue to grow and compete within the generic drug industry. This paper will be a guideline for how Teva should move it company forward in the future. Introduction Teva pharmaceuticals is known for its operational efficiency within the generic pharmaceutics industry. Information gathered from TevaPharm.com provides a clear picture of how the company is so successful within the pharmaceutical industry; Teva pharmaceuticals operates globally within sixty countries and consists of fifty four pharmaceutical production plants. The Teva company is a global industry that maintains a completive advantage as “During 2012, Teva's plants manufactured approximately 73 billion tablets and capsules and over 720 million sterile units (Tevapharm.com)”. Teva’s Competitive Advantage The Teva pharmaceutical company enjoys a serious competitive advantage within the generic pharmaceutical industry. Their biggest advantages include their operational expertise as well as their immense...
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...The History and Analysis of the Pharmaceutical Industry Pharmaceuticals Industry Analysis 1. 2. 3. 4. 5. 6. 7. 8. Origins and Evolution Environmental Analysis (PEST) Structural Industry Analysis (Porter’s Five Forces) Strategic Issues Facing The Industry Analysis of Key Industry Participants and Strategy Pfizer – SWOT Analysis and Strategy Review Conclusion References 2 2 4 5 6 8 10 10 i Pharmaceuticals Industry Analysis Executive Summary This report provides an analytical strategic review of the pharmaceutical industry; it’s origins, evolution, development and competitive environment within which it operates and the strategic issues facing the industry. The report also offers an overview of the industry, it’s key players, their strategic outlook, the impact of technological developments and other strategic issues facing the industry. The latter sections of the report focuses on the industry’s leading firm, Pfizer\Pharmacia. Page 1 Pharmaceuticals Industry Analysis The Pharmaceutical Industry 1. Origins and Evolution 1 The modern pharmaceutical industry is a highly competitive non-assembled global industry. Its origins can be traced back to the nascent chemical industry of the late nineteenth century in the Upper Rhine Valley near Basel, Switzerland when dyestuffs were found to have antiseptic properties. A host of modern pharmaceutical companies all started out as Rhine-based family dyestuff and chemical companies e.g. Hoffman-La Roche...
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...ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARDLOOKING STATEMENTS. IMPORTANT FACTORS THAT COULD CAUSE OR CONTRIBUTE TO SUCH DIFFERENCES INCLUDE RISKS RELATING TO: TEVA'S ABILITY TO ACCURATELY PREDICT FUTURE MARKET CONDITIONS, TEVA'S ABILITY TO SUCCESSFULLY DEVELOP AND COMMERCIALIZE ADDITIONAL PHARMACEUTICAL PRODUCTS, THE INTRODUCTION OF COMPETING GENERIC EQUIVALENTS, THE EXTENT TO WHICH TEVA MAY OBTAIN U.S. MARKET EXCLUSIVITY FOR CERTAIN OF ITS NEW GENERIC PRODUCTS AND REGULATORY CHANGES THAT MAY PREVENT TEVA FROM UTILIZING EXCLUSIVITY PERIODS, COMPETITION FROM BRAND-NAME COMPANIES THAT ARE UNDER INCREASED PRESSURE TO COUNTER GENERIC PRODUCTS, OR COMPETITORS THAT SEEK TO DELAY THE INTRODUCTION OF GENERIC PRODUCTS, POTENTIAL LIABILITY FOR SALES OF GENERIC PRODUCTS PRIOR TO A FINAL RESOLUTION OF OUTSTANDING PATENT LITIGATION, INCLUDING THAT RELATING TO THE GENERIC VERSIONS OF ALLEGRA , NEURONTIN , LOTREL , FAMVIR , AND PROTONIX , THE IMPACT OF CONSOLIDATION OF OUR DISTRIBUTORS AND CUSTOMERS, THE EFFECTS OF COMPETITION ON OUR INNOVATIVE PRODUCTS, ESPECIALLY COPAXONE SALES, THE IMPACT OF PHARMACEUTICAL INDUSTRY REGULATION AND PENDING LEGISLATION THAT COULD AFFECT THE PHARMACEUTICAL INDUSTRY, THE DIFFICULTY OF PREDICTING U.S. FOOD AND DRUG ADMINISTRATION, EUROPEAN MEDICINES AGENCY AND OTHER REGULATORY AUTHORITY APPROVALS, THE REGULATORY ENVIRONMENT AND CHANGES IN THE HEALTH POLICIES AND STRUCTURES OF VARIOUS COUNTRIES, OUR ABILITY TO ACHIEVE EXPECTED RESULTS THOUGH OUR...
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