A blockbuster drug is the one which generates more than $1 billion of revenue for the pharmaceutical company that sells it each year."In the pharmaceutical industry, a blockbuster drug is termed as the one that achieves acceptance by prescribing physicians as a therapeutic standard for, most commonly, a highly prevalent chronic (rather than acute) condition. 'Blockbuster’ drugs play a key role in the pharmaceutical industry. However, discovery and development alone are not enough to create a blockbuster; the firms must be able to market the drug aggressively to achieve the potential gains from their innovation. A report from URCH Publishing estimated that one third of the pharma market is accounted for by blockbuster drugs by value. Between 2000 and 2005 drugs with more than $1billion in sales accounted for 28 to 36% of global sales changes in the sales of these drugs can cause large changed in a firms profitability .There are arguments that while many firms are capable of discovering and developing new drugs, only a handful of firms are capable of successfully commercializing a breakthrough innovation. This commercialization capability is what creates a blockbuster: without this capability, even a major innovation would not reach blockbuster status For example: Cimetidine was the first drug to reach a $1 billion target thus making it a blockbuster drug. Lipitor, a cholesterol-lowering medication marketed by Pfizer is the top seller with sales of $12.5 billion. In 2009 there were a total of seven new blockbuster drugs, with combined sales of $9.8 billion. Blockbuster drugs are usually a significant therapeutic breakthrough compared to previously available therapies. However greater therapeutic value alone is not enough for cr... ... middle of paper ... ...s: each was licensed to a much larger firm because the originator firm lacked the capability to market the drug. the larger analysis of blockbuster drugs showed that this thread is common across blockbusters that originated with smaller firms. The largest firms appear to hold a significant advantage in commercialization—they are highly effective at extracting the value of innovative drugs . The study suggests some qualified reasons for skepticism that the end of the blockbuster era will bring a major upheaval in the industry. Large firms’ advantage in commercialization suggests that they may maintain their dominant position. Marketing of pharmaceuticals may move from broad-based to targeted approaches, but a company with a broad reach may still have an advantage in identifying markets for niche drugs and commercializing the drugs within those more narrow market
In order to take advantage of this demand, five billion dollars is spent by the pharmaceutical industry on marketing each year. This marketing, usually in the form of advertisements, often distorts facts and makes the necessity for drug treatment seem greater.... ... middle of paper ... ... Washington, D.C.:
The Pharmaceutical industry in India is the world's third-largest in terms of volume. According to Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, the total turnover of India's pharmaceuticals industry between 2008 and September 2009 was US$21.04 billion. While the domestic market was worth US$12.26 billion. The industry holds a market share of $14 billion in the United States.
Prescription drug prices rose three times faster than inflation in the decade between 1981 and 1991, making the pharmaceutical industry the nation's most profitable business. Prescription drugs even exceeded the rapidly rising inflation rate for all other medical services. They now represent at least 10% of all the medical costs in the United States.1
Almost everybody on Long Island, and probably all around the world, has been prescribed a drug by a doctor before— whether it was to knock out a nasty virus, or relieve pain post injury or surgery. However, what many people don’t realize is that these drugs can have highly addictive qualities, and more and more people are becoming hooked, specifically teenagers. But when does harmlessly taking a prescription drug to alleviate pain take the turn into the downward spiral of abuse? The answer to that question would be when the user begins taking the drug for the “high” or good feelings brought along with it—certainly not what it was prescribed for (1). The amount of teens that abuse prescription medications has been rapidly increasing in recent
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.
Total revenues increased 17% to $52.5 billion in 2004 and39% to $44.7 billion in 2003, primarily due to the acquisition of Pharmacia Corporation (Pharmacia) on April 16, 2003, the impact of foreign exchange and strong product performance
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 US. Industry groups, pharmaceuticals dedicated 16.6% of their amounts to basic research, while all other industries averaged at 5.3% (Sherer 1307). This fact validates the incentive pharmaceutical companies have to get a patent and acquire more power. Pfizer encourages R&D because of the incentives and a want to obtain patents to receive more profit. Pfizer has to promote itself to be successful, creating a good brand image that consumers will trust. If the company can advertise successfully, more consumers will purc...
For a drug to get to market it must go through several stages of research and development (Abbott and Vernon). Starting with discovery research, preclinical testing on animals, three phases of clinical trials on humans, and finally FDA (Food and Drug Administration) approval (Abbott and Vernon). Out of several thousands of drugs only a few will make it to the FDA approval stage (Abbott and Vernon). Testing is a highly regulated, time consuming, and expensive process. From beginning to end the process can take fifteen years and less than one of five compounds will make it to market where it is still not guaranteed to succeed (Abbott and
Original pharmaceutical and healthcare market research and pharmaceutical and healthcare sector trend analysis for the Indian pharmaceutical and healthcare industry.
the industry , which is the only appealing side of the drug trade, but it is not
Since its humble beginning as a small drugstore, Merck has placed a large amount of importance on improving the health and well-being of its customers. As drug patents expire and genetic forms of their top products become available, Merck’s strategy is to do the unexpected; instead of raising the price of their older products in favor of patent protected new drugs, Merck focuses on reducing their cost in order to better compete with their generic counterparts. Additionally, Merck’s plan for growth now encompasses a much more aggressive pursuit of new drugs in their pipeline through extensive research. Merck became the second largest health care company in the world after the merger with Schering-Plough in 2009 and has contributed great discoveries like the first cervical cancer vaccine and great resources like the Merck Manuals which are utilized as a source of information to doctors, scientists and consumers worldwide .
Hundreds of professional athletes across the world have been accused of taking performance enhancing drugs. The use of performance-enhancing drugs by professional athletes, or "doping", has been acknowledged as a problem since at least the 1960s. The first use of performance-enhancing drugs has been traced back to the first Olympics in Greece. Scandinavian mythology says Berserkers could drink a concoction prepared from a mushroom, to increase their physical power a dozen times. “We have to make some radical move to get the attention of everyone. Cheaters can't win and steroids have put us in the position that it's OK to cheat.” (Lou Brock, 2009) This quote describes how almost every professional player feels when they know that their opponents are cheating. Performance enhancing drugs should be banned and players should be punished more harshly because it leads to numerous diseases, young athletes would be tempted to take it, and players would be unpredictable and can cause.
PROBLEM STATEMENT Teva Pharmaceuticals, the first multinational pharmaceutical company in Israel, has become a successful global giant in the industry of generic drugs. After experiencing a long period of success and growth in the generic drug industry against some big western pharmaceuticals, the company had acquired many well known pharmaceutical companies and had achieved its goal of $1 billion. theory seemed to be in trouble in building a new strategy and vision to compete with the rapidly growing generic industry. They confronted two big issues as key hurdles in their way.
The head of Merck, one of the world's largest drug companies, Henry Gadsden told fortune magazine thirty years ago that he wanted Merck to become more similar to companies such as Wrigley's chewing gum. He said to make drugs for a healthy person has been his dream for years so that Merck could "sell to everyone".
The United States is encountering a speedily accumulative incidence of drug shortages. This has caused abundant complications for health care facilities, clinicians, their patients, and federal regulators. Drug shortages are determined to be caused by multiple factors such as, business decisions, regulatory issues, disturbances within the supply chain, difficulties in acquiring raw materials, and manufacturing issues. These problems adversely affect patient care because it causes substitutions of effective and safe therapies with substitute treatments. This can delay or compromise medical procedures. This can cause medication errors. A management approach that includes clear policies as well as procedures for gathering information, making a decision, collaborative efforts and timely communication need to be established to handle such drug shortages in an effective manner (Ventola, 2011).