1. General description 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. In general the drug manufacturing industry is very risky. In order companies to stay in business they need to research and develop new products. Firstly companies need to develop new compounds, however only one on every ten thousand compounds becomes approved and it takes years to do this. Then only 3 out of 20 drugs make enough revenue to cover their development cost and only 1 out of every 3 drugs generates enough money to cover the costs of previously failed drugs. 2. Drug manufacturing industry today. In the recent years the drug industry underwent a significant transformation. Many of the big companies generate high revenues, which allow them to expand. Some of them expand on their own others through mergers and the buying of smaller companies. In the recent years drug companies showed an increase in their revenu... ... middle of paper ... ...MPONI and REMICADE, infectious disease products, such as INCIVO and PREZISTA, neuroscience products, oncology products and other pharmaceuticals. The Medical Devices and Diagnostics segment consists mostly of franchises such as Orthopaedics franchise, Surgical Care, Vision Care, Diabetes Care, Specialty Surgery, Diagnostics and other franchises. The rich portfolio J&J has of products, franchises and companies is one of the reasons why the company is one of the market leaders. 1.5 Market Share and Recent Trends Today, Johnson & Johnson is a pharmaceutical giant worth $71 billion. The company is listed on NYSE as JNJ with 2.83 billion shares outstanding with the value of $92.7 per share. 2013 is one of the most successful years of Johnson & Johnson. For the past 3 years J&J revenue has been gradually increasing having record high revenue of $71.3 billion for 2013.
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.
As per WHO "The 10 largest drugs companies control over one-third of this market, several with sales of more than US$10 billion a year and profit margins of about 30%. Six are based in the United States and four in Europe. Companies currently spend one-third of all sales revenue on marketing their products - roughly twice what they spend on research and development."
Stan Frinkelstein and Peter Temin believes that one solution is to eliminate the link between drug prices and drug discovery. This will help ease the fear of losing research funding for new medicine and by doing so, drug prices should be a lot more reasonable. The next solution they have is to undo the blockbuster mentality and this is closely linked to eliminating the link between drug prices and drug discovery. Blockbuster refers to pharmaceutical companies that achieve an annual worldwide sale of $1 billion or more. They can achieve this because the drugs are used by many patients and/or used for a long period of time. This will solve the drug price crisis because by doing so, researchers can focus more on society’s needs instead of focusing on how to generate more revenue. Their solutions will help researchers develop drugs that society truly
Pharmaceutical industry used to be a powerhouse industry with revenue of billions dollar. 1995 through 2002 was the hey-day period of pharmaceutical industry. In this period, profitability for the pharmaceutical companies was three times more than profitability of the median of all Fortune 500 companies in 2004.
A pharmaceutical company is the number of patients tested, to test their new drugs to fight cancer. Some marketing decisions, or fine-tune the new product ...
Johnson and Johnson, commonly called J&J for short, is one of the world’s well known, largest, most decentralized and most diversified health care companies. Since 1887, Johnson and Johnson has been producing, manufacturing and selling products related to human health and well-being. Today J&J has over 200 autonomous operating companies and do business globally specializing in consumer products, medical devices and diagnostics, and pharmaceuticals. Consumer products are the company’s most recognizable segment, including popular brands like Tylenol, Johnson and Johnson Baby Shampoo and Band-Aid. The medical devices and diagnostics segment manufactures products including surgical equipment and contact lenses. The largest of the three segments is pharmaceuticals.
Many of these drugs are invented not by the companies that currently sell them but by someone else. Then these companies act like big fish swallowing little fish. These larger companies either purchase many of the smaller firms outright or license promising drugs from them. These larger drug firms rarely perform research on medication other than adding slight variations to those already in their possession. These drugs with slight variations are then used to acquire new patents and maintain monopoly status over their specific markets. This means that many companies are increasing prices for their research that is used to develop these slightly-varied drugs. In essence, we are paying extra so that these companies can maintain their
Big Pharma boasts that its’ high prices are necessary to recoup their gigantic investments in developing patented medicines.
Many patients discontinue with their drug treatments due to them being highly priced.1 Regulated drug price control may benefit the public but not so much for the economy. The revenues and profits that companies make are used mainly to advertise new drug treatments and fund clinical research. Pharmaceutical companies spend only 1.3% of their revenues on basic research.1 This make no sense that only a small portion is used for research while the rest is spent on marketing. Price controlling may reduce marketing and advertising on new drugs, which may in return produce low revenues and profits for the company. Then we ask ourselves, what matters most the people or
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.
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
Johnson & Johnson is an American transnational pharmaceuticals company founded in 1886. J&J specializes in medical device production, goods manufacturing, and consumer packaging products. J&J is based in New Brunswick, New Jersey, with a secondary Consumer division based in Skillman, New Jersey. J&J possesses subsidiary companies spanning over two hundred fifty companies functioning throughout the span of fifty seven countries. Johnson & Johnson businesses and sales incorporate over one hundred seventy five countries and produce a whopping sales record of seventy four billion dollars in the year 2014.
In the business of drug production over the years, there have been astronomical gains in the technology of pharmaceutical drugs. More and more drugs are being made for diseases and viruses each day, and there are many more drugs still undergoing research and testing. These "miracle" drugs are expensive, however, and many Americans cannot afford these prices.
Pharming for pharmaceuticals is a dangerous process regarding organisms because of deadly gene defects that will make the animal suffer and the thousands of dollars wasted on failed attempts.
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.