R esearch the Pharmaceutical Industry: The research paper should be double-space

ID: 410521 • Letter: R

Question

Research the Pharmaceutical Industry: The research paper should be double-spaced and 3000-5000 words in length.

The project needs to address the following elements in the order listed:

- History

- Corporate stakeholders and response to their issues

- The role of the industry in its social, economic, and political setting

- Domestic and international ethics

- Ecological and natural resources

- Social issues

- Your rating of the industry’s overall social responsiveness and its accomplishments in this

Area

Explanation / Answer

Pharma Industry around the world follows the medicine development cycle-development, production and marketing of the medicines. It is more than 1 trillion USD industry with largest chunk of revenue coming from USA itself.1 Reasons for higher revenues can be attributed to the patents filed in Pharma sector in USA. USA has the highest number of patents filed in the industry. The number of patents filed is more than twice of China, which comes a distant second.2

History

Pharma companies have evolved from mere chemical and dye producing companies over a period of time. Business in America saw a boost as the demand of painkillers grew during the time of civil war.

Period from 1700 to 1900 saw companies like Beecham, Pfizer and Eli Lilly evolve and make pharma industry as we know it today.

Major breakthrough can be attributed to the discovery of Penicillin and Insulin in early 1900s. During World War- II, due to huge demand of antibiotics and antiseptics, pharma industry flourished. Research and development of new drugs got a push.

As the industry was booming, Drugs safety and regulations were also tightened and clearly marked standards of drug production and clinical research were put in place.

Corporate Stakeholders

As adopted from Philip Kotler, stakeholder can be very well divided into external and internal based on the marketing environment.

Internal Stakeholders

External Stakeholders

R&D

Doctors

Manufacturing

Nurses

Legal

Regulatory Authorities

Marketing

Patients

Competitors

Industry requirement

Development of new drug requires capital so prime responsibility of the management is to recover the cost. Companies have the exclusive right to sell the invented drug for an agreed amount of time.

Most of the invented drugs are patented before they are sold in the market. These patent process and technologies are close guarded. As there is a huge time lapse between patent of the product and putting these drugs in the market which results in less availability of patent time. To compensate of this lost time in market, patent term can be extended.

References