Pharmaceutical Industry Analysis
Most people living in the developed world have entered a pharmacy or purchased medication at some point in their lives. Today the pharmaceutical industry is one of the biggest industries in the United States. The industry experienced a rapid growth rate (in the double digits) in the late 20th century which has now dropped into the single digits (Mullins, 2007). The global demand is driven by factors such as a worldwide increase in elderly population and a rising quality of life in developing nations. Time Magazine listed Generic Pharmaceutical Manufacturing as one of the top ten fastest growing industries in the United States for 2012. (Mathews, 2012)
Due to the inherently volatile nature of the industry, it is necessary for companies to constantly adapt through the constant development of effective strategy. Today pharmaceutical companies must not only address finances, but social, legal, and environmental issues as well. In this paper the top ten issues companies face in pharmaceuticals are discussed. They are addressed in an order of descending importance as follows; legal issues, environmental issues, and social issues. When ordering these categories I put myself in the mindset of a potential company investor. Investors are vital to a company’s survival and a potential stockholder is primarily interested in the finances of the company, and its future prospects. Therefore legal action takes precedence above other issues.
Legal:
Legal issues are most important because a violation of law oftentimes harms a company the most financially. The top 20 pharmaceutical legal cases in history account for over 16 billion dollars in recovery. (Breggin, 2012) The violation of legal requirements is more common and typically results in much graver consequences than an environmental or social wrong. There are a plethora of areas in which a pharmaceutical company could inadvertently break the law. The top issues a company could encounter include the filing of false claims,
Due to the inherently volatile nature of the industry, it is necessary for companies to constantly adapt through the constant development of effective strategy. Today pharmaceutical companies must not only address finances, but social, legal, and environmental issues as well. In this paper the top ten issues companies face in pharmaceuticals are discussed. They are addressed in an order of descending importance as follows; legal issues, environmental issues, and social issues. When ordering these categories I put myself in the mindset of a potential company investor. Investors are vital to a company’s survival and a potential stockholder is primarily interested in the finances of the company, and its future prospects. Therefore legal action takes precedence above other issues.
Legal:
Legal issues are most important because a violation of law oftentimes harms a company the most financially. The top 20 pharmaceutical legal cases in history account for over 16 billion dollars in recovery. (Breggin, 2012) The violation of legal requirements is more common and typically results in much graver consequences than an environmental or social wrong. There are a plethora of areas in which a pharmaceutical company could inadvertently break the law. The top issues a company could encounter include the filing of false claims,
References: Berry, M. (2000). Environmental management in the pharmaceutical industry: Integrating global corporate social responsibility. John Wiley and Sons Inc, Retrieved from http://www.kantakji.com/fiqh/files/companies/w144.pdf Breggin, P. (2012, July 07). $3 billion in Fines for Illegal Marketing of Paxil, Wellbutrin and Other Drugs.Huffington Post Mathews, C. (2012, April 17). Top ten fastest growing industries in America. Time Business. Retrieved from http://business.time.com/2012/04/19/the-top-ten-fastest-growing-industries-in-america/ Mullins, J. (2007, August). A Recent History of the Pharmaceutical Industry: All five forces. Retrieved from http://www.venturenavigator.co.uk/content/154 Shah, A Silverstein, K. (1999) Millions for Viagra, Pennies for the Poor. Harper’s Magazine. Retrieved from http://www.thenation.com/article/millions-viagra-pennies-diseases-poor