An Analysis of the Pharmaceutical Industry using Porter's Five Force model, PEST, BCG Matrix and predicting future prospects.

In 1897, Felix Hoffmann created a new industry. He found a way of adding a cluster of two extra adenylic acidere-second and atomic number 23 extra hydrogen atoms to a substance extracted from willow bark. The result is cognise to chemists as acetylsalicylic acid. To everyone else it is known as aspirin. It false Bayer, the dye-maker Hoffmann worked for, into the worlds first modern drug connection. Geoffrey Carr, The Alchemists, The economist - Feb 19th 1998 Todays pharmaceutic Industry is characterized by several all authoritative(predicate) factors that influence the line environment in which each company operates: ·Severe argument from capitally strong competitors ·Strict government regulations · enormous approval restrain time ·Technology as an important factor ·Lower levels of commercializeing and customer relations in likeness to other markets - Sales character of the worlds top 75 prescription(prenominal) medicine medicines 2002 Source IMS Industry Environment Analysis In 1997, the $65 jillion industry was composed of three strategical groups: patent prescription drugs, generic prescription drugs and over-the-counter drugs. Firms such as Merck, SmithKline, Eli Lilly and others produced variant types of brand name drugs. pharmaceutic companies spent considerable amounts of capital on development. The products produced by companies are very innovative. umpteen companies market up to ten (10) blockbuster drugs each year. These drugs get under ones skin a patent life of seventeen (17) years.

However, since it takes on number cardinal (12) years to get the drug to market, manufac tures have barely five (5) years in the mar! ket to recoup their well-grounded enquiry and development costs. After the patent expires we move to our side by side(p) strategic group; the generic prescription drug makers. pharmaceutical companyceutical R& axerophthol;D expenditure in the UK Pharma R&D expenditure £ millionPharma R&D as a % of output1 1972427 198554614 19901,14017 19911,23917 19921,42017 19931,70721 19941,91820 19951,90319 19962,07820 19972,25121 19982,37623 19992,78523 20002,84625 20013,04024 2002e3,172na Source Research and outgrowth in UK... If you want to get a profuse essay, battle array it on our website: BestEssayCheap.com

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