The pharmaceutical industry has been one of the most profitable and fastest growing industries of the U.S. economy. It provides medicinal and pharmaceutical products that save millions of people from death and disease and also allow ill or sick people to recover and lead normal lives. In today’s market, there are hundreds and thousands of medications available for just about any medical ailment there is: pneumonia, malaria, influenza, STD’s, diabetes, hepatitis, allergies, strokes, cystic fibrosis, psychosis, asthma, neurological disorders, cardiovascular disease, and even cancer.
The pharmaceutical industry is regulated not only by laws and statutes, but also by the Food and Drug Administration (FDA) and the Drug Enforcement Agency (DEA). One of the major laws affecting the pharmaceutical industry is the patent law. The patent law allows pharmaceutical companies to have exclusive rights to a medication for a certain number of years. This means that no other person or company can copy the drug in hopes of gaining market share. Patent laws help pharmaceutical companies retrieve revenues that are spent in research and development - which are typically in the millions and sometimes billions of dollars range. Other laws, regulations, and acts affecting the pharmaceutical industry include the Clean Water Act, Clean Air Act, Medicare and Medicaid Prescription laws and regulations. Laws that were passed in Arizona include: Dispensing Fees to Pharmacists, Tamper Proof Prescription Pads, as well as various Arizona Revised Statutes that affect the pharmaceutical industry.
The pharmaceutical industry consists of over 2,500 locations of employment throughout the United States, and an even larger number overseas. Despite any upturns, downturns, and recoveries in the world’s economy, the pharmaceutical industry has been one industry which has remained fairly stable throughout. Regardless of fluctuations in the nation’s economy, pharmaceutical stocks have continued to rise. One factor might be attributed to the baby boom growth estimations. This estimate indicates that by the year 2030 over 70 million Americans will be over the age of 65. As a result, a larger reliance on prescription drugs for treatment will continue to cause the pharmaceutical company stocks to rise, making the industry a viable one for the years to come.
Societal values and lifestyle do play a part in the pharmaceutical industry, but do not greatly affect how prosperous the industry will be. As previously stated, the industry itself has remained profitable and continues to see growth even in times of economic downfall. Lifestyles and values may affect the industry in the sense of formulary versus generic prescription drugs - as the generics are much more affordable, but the industry itself will remain in demand, as health issues continue to occur.
Technology plays a large role in the pharmaceutical industry. Perhaps the largest sector in the industry is in research and development. New technology allows for better, faster, and more effective research and development methods. Without research and development, pharmaceutical companies are not able to make new drugs and therefore will not be able to provide relief to those who are ill. Technology will also play a role in marketing and advertising. In today’s world, the demand for bigger and better, faster and more eye appealing has forced companies to use technology to better portray just how these drugs will work. Take a look at any drug commercial from ten years ago and compare it to one from today. It is obvious that technology plays a huge role in how marketing and advertising is done today.
Dominant Economic Features
The pharmaceutical industries is one of the largest and fastest growing industries in the world. Over the years, this industry has continued to prove that new and more effective methods for treatment of various ailments are successful. Although...
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