Global Pharmaceutical Industry-Overview and Succes

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GLOBAL P HARMACEUTICAL I NDUSTRY : O VERVIEW & S UCCESS F ACTORS
A closer look at the factors affecting growth and development

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Global Pharmaceutical Market: Overview

1. Indust ry Overview The pharmaceutical industry of the world develops and markets medicines prescribed for patients by medical practitioners. The U.S., U.K and European pharmaceutical companies are the major ones of the industry. The total number of major pharmaceutical companies (annual revenues USD 1,000 million and above) worldwide The global pharmaceutical industry is estimated to be about 50. This report gives a brief end of 2010 with a growth rate of description on the global pharmaceutical market’s size, around 5 to 6 percent.
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Therefore, R&D must focus on improvement in output quantity and quality. It must be driven by the most knowledgeable and experienced human resources in organizations. Given the fundamental importance of R&D in the pharmaceutical sector, it is hardly surprising to note that the U.S. drug industry spent between $ 30-40 billion each year in the period 1999-2005 towards funding their respective research operations. Since the early eighties, U. S. industries have always spent between 15-22% of their sales revenues towards R&D activities. Pfizer spends around $6 billion on R&D every year. Successful new drugs (once approved, their manufacturing costs are usually a small fraction of their price) generate a profuse cash flow which can readily recover costs of past R&D ventures as well as finance fresh ones. Alternative sources of investment capital — from the bond and stock markets — are not perfect substitutes for cash-flow financing. Competition is a force that all players of the industry need to contend with and overcome in order to thrive and develop. With easier access to cutting edge knowledge, capital and other production factors, all companies are capable of developing some drugs which meet today’s people’s medicinal demands in the context of lifestyle diseases, neurological disorders and unknown diseases breaking out on a global scale. Generic drug manufacturers have no R&D costs to recover and they eat into the market shares of their major/branded

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