Fundamental Analysis of Pharmaceutical Stocks

Economic: Globalization of the pharmaceutical industry is an exciting opportunity to have research and development done at cheaper prices in other countries. However, this could be a double edged sword for companies because it is easy for other countries, such as India, to produce generic versions of the drug in bulk.

Developing and emerging markets present several challenges, which need to be overcome by multinational Pharma firms. Pharmaceutical managers consider market access to be their most important challenge.

In 2013, there were 4,655 pharmaceutical manufacturing plants in India, employing over 345 thousand workers.

Five of the top ten pharmaceutical companies are located in the United States and the other five are European companies, all of these companies combined, employ approximately 787,000 people. The ranking of the following pharmaceutical companies are based on

The pharmaceutical industry continues to be a major driver of trend. While demand for medicine rapidly increases in emerging economies, a growing number of consumers are also analyzing the economic performance of different medicines. These events will heighten the challenges the

There are advantages of starting a pharmaceutical firm in India. It has emerged from being an enzyme-producing firm to a biotech powerhouse under the guidance of Ms Kiran M. Shaw. They have a well-established pharmaceutical industry that has been growing since 1947. After the purchase of Hindustan Antibiotics Ltd. and India Drug and Pharmaceuticals Ltd. they were able to compete with the MNC’s (Multi National Corporaton) from overseas (Kalegaonkar, Locke, Lehrich, 2008, p. 2). In the beginning the pharmaceutical industry saw substantial growth. “By the beginning of the 21st century, over 20,000 pharmaceutical companies were operating in India” (Kalegaonkar, Locke, Lehrich, 2008, p. 2). “The pharmaceutical industry in India is ranked third

According to Bureau of Labor Statistics, the pharmaceutical industry plays a major growing role in the United States economy, with both the consumption and the production of its products. Total value of U.S. consumption of pharmaceutical drugs in 2009 was $300 billion, or about 40 percent of the worldwide market share, and reflected a 37-percent increase since 2003. (Statistics, U.S. Bureau of Labor, 2011). Also, the projected growth rate is 6% per annual.

In this paper I will discuss Pharmaceutical Research and Manufacturers of America (PhRMA) I will talk about its purpose, scope, design, application, and how they affect the healthcare economy.

By 2020 the pharmaceutical market is anticipated to more than double to US$1.3 trillion, with the E7 countries — Brazil, China, India, Indonesia, Mexico, Russia and Turkey — accounting around for one fifth of global pharmaceutical sales. Further, incidence of chronic conditions in the developing world will increasingly resemble those of the developed world.

The U.S. pharmaceutical industry is continuously growing and profiting. How these industries profit and grow in the current status of the American business is caused by various factors such as demand of the citizens, change in marketing and competition. To understand how the factors added to the increase in profit and growth of the pharmaceutical industries, we need to know how it was founded and industrialized.

The pharmaceutical industry is considered to be on of the fastest growing sectors in America. The IMS Institute for Healthcare Informatics reported revenues of $424.8 billion in 2015, a 12.2 percent increase from last year (pharma commerce). Furthermore, the U.S. pharmaceutical industry is considered to be a worldwide leader with sales accounting for approximately 44.5 percent of global sales (Whiteside, 2016). The driving force of these revenue figures is Big Pharma –the largest pharmaceutical companies in the United States. In fact, Pfizer, Merck & Co., and Johnson and Johnson [J&J] are three American companies ranked at the top of the global pharmaceutical market (Dezzanni, 2016).

Forecasts predict that by 2016 Pakistan will be the 11th largest pharmaceutical market in the Asia Pacific region, which is the major core world’s population and growth pole.

We analyzed the Indian Pharmaceutical industry on these five forces and the findings of industry competitiveness and profitability are written under the relevant competitive forces.

Further more, with other benefits such as low costs in research and development, strong clinical research capabilities, and low sovereign risk, Australia is advancing as one of the most prominent players in the pharmaceutical industry (Productivity Commission 2003). Australia’s population represents 0.3% of the world’s population and consumes around 1% of the total global pharmaceutical sales. The industry generated a total revenue of $6.1 billion in the year 2002 (ALRC 2014).

This report provides an analytical strategic review of the global pharmaceutical industry; its origin, evolution,