Pharmaceutical Industry: Governance-Association Standards Two sided coin aspects of Governance in the Public Pharmaceutical Sector Pharmaceutical products are the key element of health systems that helps the community. Despite pharmaceutical being a huge multi-billion dollar industry. This element of governance describes the negative and positive sides of the pharmaceutical industrial parameters. Good governance is one of the factors for economic growth and sustainable development at almost all sectors of society. The chaos in such negative parameters, are the prime drawbacks and violence that are failed and clearly pictures the results that prevents bad governance exist. There are many parameters that define pharmaceutical governance with a prospect of corporate social responsibility. Even though, the terminology is not constant, about corporate governance for managing the resources strategically and equally to promote the society affairs and their affiliated members. The terminology efficient Governance is increasingly used to reciprocate the operation considering and operating l...
The drug manufacturing industry is concerned with the development, production and marketing of drugs which are to be used as medication. This is one of the oldest industries in the world. The first drug stores date back to the middle Ages. Some of today’s pharmaceutical companies have been founded in the beginning of the previous century. Important discoveries have been made in the early 20th century such as insulin and penicillin who became mass produced. More drugs were developed during the 1950s-1960s such as contraceptives and heart drugs. During that time numerous organizations and declarations were established in order to regulate the industry. Until the 1970s the drug manufacturing industry remained relatively small, and then it began expanding quickly. With the development of technologies and the internet research, manufacturing, marketing and sales of drugs became a lot easier.
It is no secret that risk is prevalent in the healthcare industry. Healthcare organizations carry a large amount of risk just in their daily operations. Healthcare organizations not only have to worry about risks to their patients, but their staff, financial stability, or even a natural disaster. A healthc organization must have a risk management department with trained and qualified individuals that know how to handle various issues within the organization. At Janssen, they have a lot of risk when it comes to their product. They have compliance laws that must be meticulously followed to prevent severe punishments such as multi-million dollar lawsuits or imprisonment from criminal convictions. They must promote their products lawfully and keep them regulated by the FDA and keep medical decision making free from improper industry influence. To go along side with risk management, quality management also plays a vital role within a healthcare organization. Quality management oversees the quality of the services the organization provides as well as the products it may sell. With pharmaceuticals, the quality must be consistent and how Janssen maintains this quality must be overseen. Quality control is an important factor for them. Controlling all of the various elements within their production and also the satisfaction of their consumers plays a vital role for continual success.
Government factors into the equation of the argument. Critics of the drug industry say that there is not enough regulation, while supporters of the pharmaceutical companies argue that there is too much regulation and that that is one...
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 first social problem surrounding the health care system in the United States is the growing problem with pharmaceutical companies. The industry averages a 17% profit margin and it has been booming for decades, but the industry is being heavily led by a core group of companies (Dr. Pratt). “In 1992 the top 10 companies accounted for roughly one-third of global pharmaceutical revenue, after a period of consolidation, by 2001 the top 10 accounted for nearly half.”( Leon-Guerrero, Zentgraf, 172). These companies hold a large majority of the market share and make most of their money off patented drugs. This growing core of companies that are dominating the market are causing more problems rather than solving them. These companies are all about making as much money as they can and it shows through the salaries of the executives of these companies (Dr. Pratt). The pharmaceutical industry should have their number one priority be to the users of their products rather than profit gains.
Phatak, A. (1998 йил 01-01). The pharmaceutical industry and the medical profession. Retrieved 2012 йил 19-01 from Indian Journal of Medical Ethics: http://www.ijme.in/064cr131.html
For as long as civilization has existed, humans have been looking for ways to advance in the field of medicine in order to cure illness and elongate the human lifespan. This has led to many positives such as ground-breaking new discoveries, inventions, and vaccines. One aspect of medicine that has grown dramatically in the past decade is the pharmaceutical industry. The pharmaceuticals are responsible for the manufacturing and the distributing of medicine in the form of drugs. While the drugs main purpose is to help the sick, you cannot say the same for the pharmaceutical industry. Unfortunately, the pharmaceuticals discovered that the more we advance in the field of medicine, the more money there is for the taking. The World Health Organization (WHO) estimated that the pharmaceutical industry is worth $300 billion a year, and predicted to rise to $400 billion by next year. Because of their greed for money, the pharmaceutical industry has evolved into one of the more corrupt institutions in America, and rightfully so. They have turned America into a country that is rapidly spiraling down a risky path of addiction and dependency on drugs, and the majority of the blame falls right onto their shoulders. In order to pull ourselves out of this dilemma, America must first learn about the severity of the pharmaceutical industry’s corrupt modus operandi: Using their power and influence not for the purpose of creating cures, but for the purpose of creating lifelong customers to profit from.
Today’s business industry is comprised of various businesses, from the small “Ma and Pa” shops to well-known corporations. Each organization or business establishment tends to provide certain commodities or services to the public. For instance, pharmaceuticals are one of the many organizations that produce and distribute medicinal products and renders its services to consumers. In fact, pharmaceuticals play a significant role in the medical field and in societies medical needs. For this reason, one will further elaborate on pharmaceutical and its significance. In addition, one will discuss what it entails to bring a pharmaceutical to market.
Corporate governance implies governing a company/organization by a set of rules, principles, systems and processes. It guides the company about how to achieve its vision in a way that benefits the company and provides long-term benefits to its stakeholders. In the corporate business context, stake-holders comprise board of directors, management, employees and with the rising awareness about Corporate Social Responsibility; it includes shareholders and society as well. The principles which...
Large pharmaceutical industries are making big profits on medications because they charge high prices for profit. These pharmaceutical companies are overcharging for medications that are essential to maintaining the health of patients. Having such a high cost for medication prevents patients from receiving the care that they need. This may result in patients resorting to desperate measure such as stealing and other illegal acts. The pharmaceutical industry need to reevaluate their ethical standards because the way that these companies are going about pricing their drugs is preventing patients from living a health life. These profits come at an expense of people who depend on those medications to maintain a quality of life. It is not ethical
With the pharmaceutical industry constantly changing, it makes it very important for a company to analyze the macro environment. The first force is political; right now that pharmaceutical industry is greatly affected by politicians due to changes in health care structure, healthcare platforms, and partnerships with certain pharmaceutical companies. Within the next three to five years as politicians rotate we can foresee the political force being an even greater impact on the industry. The next force is economic. For the now we feel that the pharmaceutical industry is greatly affected by the economic force as people have more spendable income and will be more likely to purchase brand name drugs. As income dwindles, some poor individuals may be unable to purchase even generic drugs. Within the next three to five years since we are coming out of a recession, we will see consumer spending increase and the demand for the highest quality of medicines increase. The economic force will greatly impact the pharmaceutical industry for some time. The next force of the macro environment is the social force. The social force greatly affects the industry since we have begun to focus on preventative health care and detection recently. Moving forward we expect the trend of preventative health care and our tendency to change our health habits will prompt the pharmaceutical industry to deliver new and innovative products. The fourth force is technological; right now the pharmaceutical industry is greatly impacted by changes in technology, and will continue to be affected for years to come. The next force, ecological, somewhat affects the industry. Events like natural disasters, plagues, and other mass causalities can greatly affect the pharmaceutic...
Large pharmaceutical industries are making large profits on medications. Having such a high cost for medication prevents patients from receiving the care that they need. These companies are overcharging for medications that are essential to maintaining the health of patients. This may result in patients resorting to desperate measure such as stealing, crime, and other illegal acts. The pharmaceutical industry may require a different set of moral standard because in a way these laws are preventing patients from a quality life. It is not ethical for pharmaceutical industries to make large profits on medications. Pharmaceutical industries that continues to make large profits from patients who needs their medication impairs their quality of life.
Of all the booming businesses in recent history the pharmaceutical industry makes the largest profits of any industry; making approximately three times more than the average fortune 500 company (Silverstein). At the forefront of the drug industries rise is the United States. The United States accounts for nearly half of the world’s pharmaceutical market, and the benefits are evident. The United States is seeing record high life expectancy along with an all time low death rate (“Life Expectancy at All Time High”). Countless lives have been bettered and saved because of the pharmaceutical industry and the medical advances made within. However, people must remember that the pharmaceutical industry is as much a business as anything. Like any business they are looking to profit and the best interest of the consumer is not always the top priority. Despite the opposition of eager clients, the pharmaceutical industry is in need of reform and more government regulation.
Accounting for 35 percent of the global market, the United States has the largest pharmaceutical industry in the world (“Pharmaceutical and Biotech...”). Direct-to-consumer drug commercialization is one of the main contributing factors of this high percentage. In 2015, the United States $395 billion pharmaceutical corporation spent $5.2 billion on
The pharmaceutical industry produces drugs for both diseases and medical conditions. There are three types of drugs; curable, preventative and palliative. Pharmaceutical companies spent an estimated 51.1 billion in 2013 to discover and develop new medicines. More than 300 new drug products were approved by the FDA in the last decade. Now 2900 different drugs are in the process of being studied in the US. (http://www.phrma.org/about#sthash.yWixx0ku.dpuf) Before release for consumption, these drugs must be approved for use and follow a variety of laws and principles concerning the testing and safety of each individual drug. Funding is the main social factor in the pharmaceutical industry and has a huge effect on research. New pharmaceutical products in the US have to be officially approved by the FDA for both safety and effectiveness. Drug researchers are in the process of discovering new and improved designs of drugs that satisfy customers to make these drugs more desirable to consumers. The pharmaceutical industry sometimes misleads the general population into using drugs that may be harmful. Just like in other industries, pharmaceutical companies assemble products that would sell for a profit so that the company survives and becomes successful. Recently, there have been repetitive claims and findings that clinical trials from pharmaceutical industry report only positive outcomes for ideal financial results. Lately, there have been findings with legal issues concerning pharmaceutical products. Now, certain companies have been scrutinized much more closely than ever before by consumers and, more importantly, government agencies.