Pharmaceutical Industry & Legality Essay

705 Words3 Pages
Specify the types of country risks that pharmaceutical firms face in international business. How do the political and legal systems of countries affect the global pharmaceutical industry? The different types of country risks for the pharmaceutical firms are: 1. Pricing: Many Asian and African countries are poor and cannot afford the costly medicines. The Pharmaceutical firms spend vast amounts on R&D in creating and marketing drugs, thus charging high prices enables for cost of capital recovery and profit generation. 2. Patent related and Generic Competition: The developed countries like US and Europe have strong patent protection laws which gives a lot of benefits for the pharmaceutical companies. But, the patent…show more content…
What is the proper role of the following groups in addressing these dilemmas: National governments, Branded pharmaceutical firms, and Generic manufacturers? Healthcare is the most important factor for the growth and well being of any country. If the governments cannot provide subsidies for healthcare and Pharmaceutical firms just focus of their R&D, the other groups can address these issues. The National governments can play a major role. They have budget and relief funds allotted for the poor. It can also ask the insurance companies to reduce the premium based on the income of the poor. If the insurance and health coverage system is initiated by the national governments, the poor can greatly benefit from this. The branded pharmaceutical firms account for more than 50% of worldwide pharmaceutical sales. Thus they make huge profits. These profits can be used to fund hospitals in poor areas. This will not only give the firms respect but also a good recognition. Generic medicines are cheap and easily available. Though they may not be effective, but they serve the purpose for the poor. Some generic medicines may not give the desired results but the major diseases which occur among the poor people can be treated with generic medicines. Consult www.phrma.org, The Pharmaceutical Research and Manufacturers of America. What steps is the branded industry taking to address the
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