The Global Pharmaceutical Industry

Topics: Pharmaceutical industry, Pharmacology, Generic drug Pages: 3 (1181 words) Published: January 7, 2008
The Global Pharmaceutical Industry

In the pharmaceutical industry market segments can be found depending on the criteria used. For example, geographically there are three main market segments (the Triad accounting for 80% and with the strongest growth): The United States of America, Europe and Japan with the main future segment being the least developed countries. Another way of classifying the market segments that the pharmaceutical industries face is by those products directed to primary care (those used by office based practitioners) and specialist products (those used by hospitals). This industry includes quite a few distinguished strategic groups. The ethical drugs are those which are prescribed as opposed to OTC (over the counter) drugs which can be bought without prescriptions. Branded drugs are those which are patented as opposed to generic drugs. Biotech drugs are those that work in the fields of molecular biology and genetic engineering. The macro-environment can be categorised into certain environmental influential areas by the Pestel framework. The technological and socio-cultural categories are extremely relevant in this industry. Drug companies must face high levels of investment on research and development projects. This causes the transfer of costs from producing the drug to its final consumer price. The USA heavily invests in R&D resulting in higher prices. This is becoming unsustainable for the pharmaceutical industry as prices are higher in the USA than in other countries which should either share part of the R&D burden or rise their own prices. But anyhow these costs are still being sourced in the best place world wide for this kind of investment which is the USA. Moreover costs are rising due to the fact that clinical trials and investigating are becoming more complex and costly and high technology solutions are needed for the cure of any decease. The need of developing cheaper, more effective and tolerable drugs is increasing due to...
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