Discuss the market for pharmaceutical drugs. Use the ITT Tech Virtual Library to

Question

Discuss the market for pharmaceutical drugs. Use the ITT Tech Virtual Library to research information on pharmaceutical companies. Include a discussion of the following points in your answer, using examples where appropriate:

Is the market for pharmaceutical drugs an oligopoly market or a monopolistically competitive market? Support your answer.

Discuss the importance and cost of research and development. Does every drug pay off?

Is strategic behavior important in this market? Support your answer.

Is product differentiation important in this market? Support your answer.

How does the movement from a patented drug to a generic drug affect this market?

Attach a Word document of 150 to 250 words that contains all answers.

Format:

Double line space, Times New Roman, 12-point font

Formal references in APA format must be provided.

This submission must be paraphrased in your own words. Adhere to the academic honesty policy.

No more than 10% of your document can be quoted. Avoid answering any of the questions with a quote. Quotes should support your discussion instead of answering questions for you.

Explanation / Answer

The worldwide market for prescription drugs is forecast to reach almost $900 billion by 2015, according to research from Global Industry Analysts.

The prescription drug industry has been affected by the economic crisis in so far as health cutbacks have resulted in pricing pressure. Expiring patents and the subsequent availability of cheaper generic alternatives add further pressure.

The market involves the sale of medication that necessitates a prescription from a medical professional. These medicines require a license and are regulated by law. They are separate from over-the-counter drugs, which do not require a prescription.

Drug safety and efficacy being of utmost priority to the industry, careful attention to quality and testing along with safety standard surveillance are ongoing efforts required to meet the challenges of changing legislations and to avoid penalties from regulatory bodies as well as the threat of lawsuits from patients.

Another industry issue to manage is the long development time required for prescription drugs, for which clinical trials for new drugs can last up to 11 years. This is followed by regulatory body review and approval, which can add another two years before the drug can be launched on the market.

Safety is also a major concern in the marketing and sale of prescription drugs, with ongoing risk management equally having an impact. The US Federal Drug Administration (FDA)%u2019s Risk Evaluation and Mitigation Strategy addresses the abuse of opioid drugs used for pain management and available by prescription. The FDA scheme promotes responsible prescriptions and use of opioid painkillers, including oxycodone, morphine and methadone. With the US government underlining the widespread abuse of prescription medication and associated deaths, the FDA%u2019s strategy attempts to clamp down on the over-prescription of opioids to prevent the surplus from being sold through illegal routes. The FDA%u2019s initiative includes a push for manufacturers of opioid painkillers to list information on the use, disposal and prescription of their products for medical professionals.

The top spot in the global prescription drugs market is held by oncology drugs for the treatment of cancer, followed by respiratory agents such as anti-inflammatory drugs, lung fluid replacement, decongestants, biologics and inhaled corticosteroids.

Lipid regulators are in third place but are likely to see a fall in growth as the segment%u2019s top drug, Pfizer%u2019s cholesterol treatment drug Lipitor, along with others in this category, is to see its patent expire paving the way for generic drugs.

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