GlaxoSmithKline is a U.K.-based pharmaceutical powerhouse formed by a merger in the late 90’s, with the most important merger being that between Glaxo Wellcome and Smith Kline Beecham. The merger created a pharmaceutical industry giant with operations in over 100 countries and annual sales over $25 billion. In the U.S. alone, prescription drugs account for 10% of all medical costs with sales tripling over the past decade and price increases of 150 percent.…
It is not hard to obtain the same drugs from different sources so the customer loyalty is virtually non-existent and the pharmacies have to try extremely hard to sustain their consumer base.…
The Pharmaceutical industry has several high entry barriers as shown in figure 1. Economies of scale, product differentiation, government policy and capital requirements and financial services are few barriers for new entrant. Level of threat from rivalry is also high in this industry. Industry has presence of large number of small firms of a similar size. They are in direct competition with one another,…
According to one of PharmaCare’ patient:” PharmaCare is the BEST place to buy prescription drugs. In addition, to the excellent service by the workers at PharmaCare, you get a discount every time you purchase drugs. Cut you prescription cost now, buy at PharmaCare.” PharmaCare is an independent pharmacy chain based in Bel Air, Maryland. Pharmacare serves patients with traditional needs in addition to patients with special needs, such as psychiatric, substance abuse, HIV, and oncology patients. With its high customer service standards and a caring culture, Pharmacare is emerging as a regional leader.…
The Prescription drugs industry is one of my national economy important and special industry. It is closely related to people's health and life security, to protect and improve people's health has played a big role. Also, Industry's profit margin is very considerable. On the other hand, Prescription drug is a special kind of products, has a certain sensitivity, for the quality of the products and technology have very strict requirements. Because it is a direct effects on the human body, is closely related to people's health. The particularity of the industry is that ordinary consumers for the quality of the product and generally difficult to recognize and grasp the nature, generally trusted certification authority. Thus, From my perspective,…
The regulatory and legal issues related to drug and pharmaceutical development and sale is very complex. In order for the FDA to approve this drug for sale it must go through a very long lengthy process of it being approved. This long process can be costly and is considered highly risky. To achieve the point where you can sell your drug, the drug company must go through drug discover and testing. This is when thousands of scientists are employed to test the drug and do clinical testing. Once you pass the rigorous process of the FDA guidelines, your drug will then go through post approval safety and marketing. During this process, safety monitoring becomes a big issue. Next is labeling, advertising and promotional claims. Legal issues can occur during clinical testing to when the drug is out for the public to use.…
The Pharmaceutical industry has been around since the Middle Ages, and it has affected healthcare in many ways. The development of medicine and having a scientific approach, while being able to understand the human biology such as DNA, has helped achieve miracles. One of the most well known pharmaceutical companies Pfizer has grown since 1849 when it was founded, and they have taken great measurements to achieve success in this field (Pfizer, 2010). They invested much of their shareholder’s money to create penicillin at a faster rate to help war victims during the war (Pfizer, 2010). Although there has been a vast variety of competition in the 21st century, the pharmaceutical industry during the 20th century did not have much competition and doctors did not mind as much to pay x amount of money for drugs. Patients were not well informed, and counted on their doctor to provide them with the correct treatment (A Recent History, 2007). From the beginning of time this industry has helped patients live longer and has transformed healthcare.…
Prescription drugs are drugs that save millions of people's lives everyday. Many people depend on these things in order to keep them alive. Although, major pharmaceuticals companies view this as a very dependable way of receiving capital, having to need these things in order to live another day. Since people most of time need this drug in order to survive they are willing to pay thousands of dollars just so they could live another day. There are many people who require these specific things in order to survive. When it comes corrupt CEO’s, companies, and statistics the prescription drug business is going down hill.…
Strict FDA guidelines to the research, development, testing, sale, and consumption have a direct impact on the supply curve. Drug manufacturers invest years and millions of dollars in research and development of new drugs and own long-lasting patents on new drug production. Once these drugs have passed the various levels of FDA approval, drug manufacturers market these to consumers who begin making the demand curve. Limited supply, regulatory compliance, and research costs put upward pressure on price.…
Invention of Diseases- According to Big Pharma's critics, another reason medication use has increased is that pharmaceutical companies have literally invented new diseases for their pills to treat. An example of such a practice is the drug Detrol for "overactive bladder," a condition that did not exist until the drug maker coined the term and then spent millions teaching doctors how to recognize it. Detrol has since turned into a blockbuster drug, with…
Pharmaceutical manufacturers a multi billion industry who are solely depend on research and development of drugs which is a very risky as one out of ten thousand becomes actually approved for sale. Parallel research is done in various pharmaceutical companies once a clinical path is being discovered and this requires intensive competitor monitoring procedure. Therefore drug companies are combating each other to develop multibillion dollar drugs each year to survive.…
Pharmaceutical companies employed nearly 300,000 people in the United States in 2008, and nearly 87 percent of the companies in the pharmaceutical industry employed more than 100 workers in 2008. The tax benefits to the United States are substantial as well. Pfizer alone posted $44 billion worth of revenue in 2008, according to Contract Pharma. The economic climate impacts the pharmaceutical industry, but profitable companies result in more taxable revenue. People may criticize this amount of profit from one company, but consider this: The underlying goal of every single business is to make money. People single out pharmaceutical companies for making profits, but it's important to remember that they also create products that save millions of lives. Due to the production of better medicine, competitive pressures and government regulations, the cost of health care services can be controlled and reduced. The increased availability of generic drugs helps contribute to cheaper health care for patients.…
These high prices are because of several factors, which include monopolies in the drug industries hiking prices, companies taking advantage of the patents and statutory exclusivity. From the research it is also clear that the average wholesale prices of drugs is lower, but when the drugs pass through the various intermediaries in the supply chain their prices are hiked these may be as a result of additional operational costs or because of the marketing involved.…
GlaxoSmithKline is a leading, global, research-based healthcare and pharmaceutical company. In India, it is the number one pharmaceutical company. GlaxoSmithKline plc (GSK) is a British multinational pharmaceutical, biologics, vaccines and consumer healthcare company headquartered in Brentford, London. As of March 2014, it was the world's sixth-largest pharmaceutical company. GlaxoSmithKline Pharmaceuticals Ltd is an Indian subsidiary of GlaxoSmithKline plc, one of the world's leading research based pharmaceutical and…
The many aspects contribute to the decrease in profit of the drug industry , firstly politicians are trying to put price control on prescriptions drug which affect the profit of the drug producing industry. Secondly , it s the loss to “generic drug “ company when their drug patent expired. The creator company will no longer be the only one produces the drug, and have to compete with generic version drug which similar formula but offered at much cheaper price. For example, Pfizer is the company who holds a 20 years patent protection of Lipitor , a very high demand ,popular drug that generate them great profit . With the patent, Pfizer is the only company who allowed to produce it and can sell at high price. Once their patent expired , which in 2010 ,other company and firm will…