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 snow and atomic number 23 extra hydrogen atoms to a substance extracted from willow bark. The result is cognise 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 community. Geoffrey Carr, The Alchemists, The economic expert - Feb 19th 1998 Todays pharmaceutic Industry is characterized by several primal factors that influence the line environment in which each company operates: ·Severe argument from capitally strong competitors ·Strict government regulations · foresighted approval restrain time ·Technology as an all-important(prenominal) factor ·Lower levels of commercializeing and customer relations in parity to other markets - Sales character of the worlds top 75 prescription(prenominal) medicine medicines 2002 Source IMS Industry Environment Analysi s In 1997, the $65 jillion industry was composed of three strategical groups: secure 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 massive amounts of capital on development. The products produced by companies are very innovative. legion(predicate) companies market up to ten (10) blockbuster drugs each year. These drugs down a patent life of seventeen (17) years.

However, since it takes on add up cardinal (12) years to get the drug to market, manufactures have only(prenominal) five (5) years in the market to recoup their s evere enquiry and development costs. After t! he patent expires we move to our following(a) strategic group; the generic prescription drug makers. pharmaceutical R& axerophthol;D expenditure in the UK Pharma R& ampere;D expenditure £ millionPharma R&D as a % of output1 1972427 198554614 19901,14017 19911,23917 19921,42017 19931,70721 19941,91820 19951,90319 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, ordinance it on our website: OrderEssay.net

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