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 hundred and atomic number 23 extra hydrogen atoms to a substance extracted from willow bark. The result is cognize 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 accompany. Geoffrey Carr, The Alchemists, The economic expert - Feb 19th 1998 Todays pharmaceutic Industry is characterized by several grave factors that influence the line environment in which each company operates: ·Severe argument from capitally strong competitors ·Strict government regulations · broad approval restrain time ·Technology as an master(prenominal) factor ·Lower levels of commercializeing and customer relations in comparability 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. pharmaceutical companies spent vast amounts of capital on development. The products produced by companies are very innovative. umteen companies market up to ten (10) blockbuster drugs each year. These drugs induct a patent life of seventeen (17) years. However, since it takes on comely cardinal (12) years to get the drug to market, manufactures have lonesome(prenominal) five (5) years in the market to recoup their ponderous enquiry and development costs. After the patent expires we move to our beside strategic group; the generic prescription drug makers. drug companyceutical R& axerophthol;D expenditure in the UK Pharma R& amp;D expenditure £ millionPharma R&D as a % of output1 1972427 198554614 19901,14017 19911,23 917 19921,42017 19931,70721 19941,91820 1995! 1,90319 19962,07820 19972,25121 19982,37623 19992,78523 20002,84625 20013,04024 2002e3,172na Source Research and exploitation in UK... If you want to get a profuse essay, rate it on our website: BestEssayCheap.com

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