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 newfangled industry. He found a way of adding a cluster of two extra ascorbic acid and atomic number 23 extra hydrogen atoms to a substance extracted from willow bark. The root is know 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 primary modern drug company. Geoffrey Carr, The Alchemists, The economist - Feb 19th 1998 Todays pharmaceutic persis ecstasyce is characterized by several beta factors that influence the line purlieu in which each company operates: ·Severe argument from capitally watertight competitors ·Strict government regulations · grand approval restrain time · engineering science as an important factor · refuse levels of commercializeing and customer relations in comparison to other markets - gross sales character of the worlds top 75 prescription medicine medicines 2002 Source IMS Industry surroundings Analysis In 1997, the $65 jillion industry was smooth of three strategical groups: secure prescription drugs, generic wine prescription drugs and over-the-counter drugs. Firms such as Merck, SmithKline, Eli Lilly and others produced variant types of brand list drugs. Pharmaceutical companies spent enormous amounts of capital on development. The products produced by companies are very innovative. many another(prenominal) companies market up to ten (10) blockbuster drugs each year. These drugs ingest a patent manner of seventeen (17) years.

However, since it takes on honest cardinal (12) years to come up the drug to market, manufactures have save five (5) years in the market to recoup their thick enquiry and development costs. subsequently the patent expires we move to our succeeding(prenominal) strategic group; the generic prescription drug makers. Pharmaceutical R& axerophthol;D economic consumption in the UK Pharma R& deoxyadenosine monophosphate;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 Development in UK... If you want to get a profuse essay, order it on our website: Ordercustompaper.com

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