Pharmaceutical Industry Analysis
Pharmaceutical industry is an industry concerned with the development, production and marketing of curative drugs, which are licensed for use. This industry is easy to operate because with the use of technical knowhow, one can understand the metabolism associated with diseases and pathogens, and with the use of chemistry and biology, manipulation can be done to these pathways.
This is easier to carry out since earlier drug discoveries have been carried out at institutions of higher learning like the universities and research firms and therefore, advancing from the traditional usage of the herbal medicine (Brooks, Weatherston & Wilkinson 2011, p.17). Like the other products, drugs should also be developed to ensure that they are sustained for a reliable medication.
This is usually done to ensure effective formulation, dosing and the safety measures. The research done in these fields require clinical trials after conducting an extensive study. Capital is very essential in conducting product development.This is due to the high cost involved in the maintenance of quality controls, marketing, distribution and the manufacturing process(Hamilton and Webster, 2012, p.12).
In addition, collaborative contracts between research firms and other large pharmaceutical companies such as Global Ventures Limited can be formed to discover the possibility of new drugs. Drug companies are managed like other companies because they deal in the production of commercial goods to ensure the companies’ growth and development. They industry is very risky as compared to the others.
Drug invention and innovation is quite expensive. Of all compounds used by human beings, only a small percentage are finally approved in most states by the government appointed medical institutions and boards, who should endorse the usage of new drugs before they can enter the market.
There are estimated costs that take into account the cost of the most forgone of investing resources, which is usually done many years before the realization of revenues (Dicken 2007, p. 9). They should consider the time value of money. Competition amongst most worldwide companies has led to production of drugs with chemically, which uses the same system of action as an existing and accepted chemical component.
Most competitors usually use the me-too drugs and they avail them at the market since their development is less expensive and less risky as compared to those with the original mechanism of action.
The company will have to look to research team for viable studies that will make the pharmaceutical industrial commodities attract the customers. They should be sponsored and remunerated for example, by supporting their symposium and consultation costs. Journal articles and lecture scripts presented by these academic researchers may actually not be true.
This means that these researchers who have tried to reveal the ethical issues with medical trials or who tried to publish these journals with harmful effects on newly introduced drugs or devising cheaper differentiated drugs should be threatened with law suits by the company(Brooks, Weatherston & Wilkinson 2011, p. 39).
Pharmaceutical industries in the United Kingdom can search for market for its products in overseas countries such as the United States of America. In that particular country, new pharmaceutical goods have to be approved by the administration of food and drugs to ensure safety and effectiveness.
The FDA evaluates this information and if the manufactured goods are seen to have a positive gain to the citizens, authorization to market the merchandise in the country is granted. Another phase of post authorization examination is also frequently required because even the largest medical trials cannot efficiently predict the occurrence of rare negative effects.
In definite instances, its sign may need to be restricted to exact patient groups and in others, this substance is removed from the industry totally; these are the drugs in which their production is guided by specific regulation. These are used for the treatment of some rare diseases.
Global Company Limited should not invest in the production of the orphan drugs. These products are of financial disadvantage in the United States as well as the United Kingdom (Hamilton & Webster 2012, p.40).
According to Hamilton and Webster (2012, p. 40), the production of such should be done only if there are rewards for instance, government reductions in the taxes, waiving the fees and market exclusivity regardless of whether the drug has patent rights or not.
There exist quite a number of schemes, which monitors the industry. These include; off Label Marketing, Best Price Fraud, Good Manufacturing Practice Violations, CME Fraud, Medicaid Price Reporting and Manufactured Compound.
Sitkin and Bowen( 2010, p. 47) argue that a company should make use of strategies such as acquisition, amalgamation and combined marketing to create a deal between them and other companies. This makes the industry achieve large-scale economies in trade. Emphasis should be made to ensure that the company should use commercial stores and pharmacies to make non-instruction sales and marketing of their products.
New methods of marketing have been used in the market since the early 1980’s. The company should use the legal direct-to-consumer media promotion in the FDA management for business. The company ought to conduct electronic marketing and deal directly to the customer rather than use a conventional retailer as middleman. For example, marketing largely through the company’s website should be used.
Patent rights have faced criticism in the developing countries, as they are considered to decrease chances of access to the available medicinal drugs and consequently without the monetary incentive of patent rights; future improvement on the quality of medicines is dispirited.
According to Dicken (2007, p. 17), reconciliation of patents and worldwide access to drugs would need an efficient global policy of discriminating the price. Therefore, Global Limited Company should ensure that pharmaceutical products are patented.
Dicken (2007, p. 17) notes that as a limited company and worldwide operator, there should be a sufficient laid down strategy to ensure that the organization gives back to the community in which it is operating in. This is usually achieved by instituting charitable programs, medicinal discovery and growth efforts, which should regularly be conducted by the company in favor of the community they are operating in.
Moreover, some non-governmental organizations should be conducted to ensure that those that do not normally accept shared donations of medicines are incorporated into the industry. More specifically, they should be encouraged to become reliant on the supplies of medicine because the supplies will not dependent upon profit motivated charities of the company (Sitkin & Bowen 2010, p. 47).
Industry Analysis Document
Doing Pharmaceutical Business in India
In India, one can boost the pharmaceuticals industry with biotechnology. Doing business in this country will ensure that there are proper strategies and easy management of sales, marketing and even fair competition with the other similar industries in the country. Unlike in the other countries of the world, the dissimilarity between pharmaceuticals biotechnology remains literally defined in India.
In this country, biologics and the large molecular drugs are more expensive than the small-molecule ones. Therefore, India hopes to remove them from the market in biogenetics and venture in the manufacturing of drugs that meet their capabilities (Dicken 2007, p. 22).
Most firms in the biotechnology industry in the country are very small and generate small amounts of revenue. This makes it easy for the Global Venture Limited Company to effectively compete in the market since it can enjoy the large-scale economies (Sitkin & Bowen 2010, p. 51).
In this nation, the market is mostly monopoly with well-established countries having an upper hand. Companies are both dependent on government support and venture capital markets for financial support because none can be commercially feasible in future.
This opens the opportunity for the United Kingdom companies to invest in the country since it can conquer competition and deliver quality products and services given its health financial position. Various analysts have found out that the publicity around the biotech sector reflects that of the IT.
Colleges are available in the country to assist scholars who are willing to benefit from the growing industry. India’s biotech industry can be used to provide most of the students with employment opportunities in future, if a potential company can invest in the country.
The government gives much support to the industry and this government reductions in the taxes, waiving the fees and market exclusivity regardless of whether the drug has patent rights or not. It has established a department since the year 1986 under the ministry of science and technology. In collaboration with other state organizations, it has offered a number of dispensations to promote the industrial growth.
The minister launched a program to provide tax levies and grants for biotech investments and businesses seeking to develop and establish themselves (Brooks, Weatherston & Wilkinson 2011, p. 59).This widely attracts investment to the country because of the government support whereby it has removed obligatory licensing. Hundred percent of foreign direct investment is allowed in India.
The major challenge facing the sector in its growth is due to lack of enough funds, particularly for businesses that are new in the market. The most accessible sources of financing are grants from central government and the venture capitalists.
Grants from government are not easily secured, and because of the luxurious and uncertain nature of the research, the investors become reluctant in investing in firms, which does not deal with commercial production.
This means that these researchers who have tried to reveal the ethical issues with medical trials or who tried to publish these journals with harmful effects on newly introduced drugs or devising cheaper differentiated drugs should be threatened with law suits by the company. India should solve its financial problems by attraction of overseas investments and partners.
Before the potential investors venture into the industry, significant sums in the production process, however, there is the need to have better systematic and financial responsibility (Hamilton and Webster, p. 2012, p.39). India is gradually aiming towards these objectives, but they will take some time before achieving the standards of other international investors.
India also lacks qualified employees to work in these biotech firms. This is because the ambitious sound-minded students compete for the information technology courses and other courses but the country is not capable of granting the students opportunities for employment.
A student in India aspiring to do research activity in biotechnology needs to study for 7 to 10 years in the university. While considering this as a major problem, it pulls up the cost in a country whereby the competitive advantage is based mainly on cheap and high quality labor (Dicken 2007, p. 31).
According to Brooks, Weatherston and Wilkinson (2011, p. 78), the production of such should be done only if there are rewards like the government cuttings on payable taxes, relinquishing some fees and market exceptionality in spite of whether the medicine has exclusive rights or not.
As a limited company and worldwide operator, there should be sufficient laid down strategy to ensure that the organization gives back to the community in which it is operating. This is usually achieved by instituting charitable programs, medicinal discovery and growth efforts, which should regularly be conducted by the company in favor of the community they are operating in.
Moreover, some non-governmental organizations should be contacted to ensure that those that do not normally accept shared donations of medicines are incorporated into the industry. Hundred percent of foreign direct investment is allowed in India.
While not much has been done about that, the central government addresses the difficulty of sophisticated but unskilled candidates in its planned biotechnology development map.
This arrangement suggests that there should be creation of a national duty force to work in conjunction with the business firms in modification of the core curriculum for the graduates in science and technology to suit market needs. The plans of the government also stated the desire to increase the figure of PhD awards that were given by the department per year (Brooks, Weatherston & Wilkinson 2011, p. 79).
List of References
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Daniels, J, Radebaugh, L & Sullivan, D 2009, International business, 12 edn, FT Prentice Hall, London.
Daniels, J, Radebaugh, L & Sullivan, D 2009, International business, 12 edn, FT Prentice Hall, London.
Dicken, P 2007, Global shift: mapping the changing contours of the world economy, 5 edn, Paul Chapman, London.
Hamilton, L & Webster, P 2012, The international business environment, 22 edn, Oxford University Press, London.
Morrison, J 2006, The international business environment: global and local market places in a changing world, Palgrave, Basingstoke.
Quick, A 2007, Encyclopedia of global industries, 4 edn, Gale Research, Detroit.
Sitkin, A & Bowen, N 2010, International business: challenges and choices, Oxford University Press, London.
Wall, S, Minocha, S & Rees, B 2010,.International business, 3 edn, FT Prentice Hall, London.