Pharmacy

U.S. based companies hold rights to most of the world’s rights on new medicines and holds thousands of new products currently being developed. As of 2012, the industry helps support almost 3.4 million jobs in the U.S. economy. It is also one of the most heavily R&D based industries in the world. In the United States, the environment for pharmaceuticals is much friendlier than other countries around the world in terms of pricing ability and regulations. Both the Pharmaceutical and Biotechnology industries have experienced significant growth in the past year with year-over-year increases of 13.02% and 34.69% respectively. It is an even more striking when looking at the past five years considering both have beat out the S&P 500 with pharmaceuticals increasing an additional 31.44% and the biotechnology sector besting an astonishing 269.3% more return than the

There are multiple health concerns worldwide and more and more drugs are needed every day. Many drugs however, are extremely expensive to develop, test, and produce. According to the Tufts Center for the Study of Drug Development (2002), it costs up to $802 million to bring a new drug to the market. In 2002, pharmaceutical companies spent $34 billion in research and development (Center-Watch, 2003). In addition to the costs, the overall time from the discovery to approve and market the drug can take up to 15 years.

Epipen had a monopoly that was created by the FDA failing to have a consistent product approval process. A monopoly is a set of circumstances where one producer controls the supply of

Many other drugs also lose patent protection leading to the creation of substitutes that are cheaper.

Providing Over-The-Counter medicine Allstar targets people who have common health problems. The best way to segment Allstar’s customers would be by the following two major categories: illness (cold, cough, allergy) and demographics (young singles, young families, mature families, empty nesters, retired). Allstar Brands invests in marketing research to learn about the ever changing preferences and trends of the market. The information the Company gathers from this research is then used to make according decisions to satisfy each particular category of customer.

The Medicines Company used the saying “one man’s trash is another man’s treasure,” to the next level. It essentially took what other pharmaceutical companies place on the shelves and never use again as their next product which becomes a money maker. The idea is a great idea if it is well executed. The company cannot take just any type of drug and try to execute it pouring in millions of dollars’ worth of research and development because if the product is not chosen carefully, the product will fail. A simple failure for a drug that was not carefully selected, can damage the company’s image and reputation.

High capital expenditure into research and development, lengthy approval process, marketing before any realized returns are a major deterrent for any new entrant. It is a highly regulated industry. Also, the presence of “big pharma” companies deters new competitors.

The pharmaceutical industry includes companies that research, develop, market or distribute generic and branded drugs. The industry expanded during the 1980’s and drugs to treat heart disease and AIDS were prominent. Consumer demand for nutritional supplements and alternative medicine increased during the 1990’s with the Internet facilitating direct purchases of drugs. Advertising for direct consumption of pharmaceutical drugs became more prominent; pharmaceutical companies were criticized for over medicating personality or social problems.

While this case is literally full of negative aspects, we will only focus on the main points for both arguments. Pharmaceutical companies want to be sure that the products they spend years and millions of dollars to create are not easily reproduced and sold at discount prices. The profits pharmaceuticals make of their patented products are supposed to refinance new research. So taking away their exclusive distribution rights and allowing other manufacturers to just copy the product and sell it at

Pharmaceutical companies try to maintain a monopoly in the early stages of a drug in order to recover R&D investment. During this period of exclusivity they will try to make a fair profit. This is not a monopoly in the true sense of the word because this period is limited in time. It is perhaps better to describe it as a limited warranty. There are also other limitations. Pharmaceutical companies in some countries may not respect intellectual property and may copy or produce generic drugs even before the patent expires.

and non-pharmacy personnel. Officer Hartshorn also suggested placing tape on doorways to help determine the height of a robber as well as limiting the stock of controlled substances or to have controlled substances in a locked safe, or otherwise “hard to get to” location.2 Time is a robber’s worst enemy so implementing ways to slow down the process may make the robber abort the robbery. According to John Partridge of the Drug Enforcement Administration, another suggestion is to have communication with other pharmacies in the area and with local law enforcement in advance of any robbery or burglary incidents and to invite law enforcement to tour the pharmacy and offer recommendations on deterring theft.7 Also, make sure there is enough

Specific struggles can occur as possible interventions to mitigate drug shortages are attempted. As discussed above, pharmaceutical manufacturers are private enterprises that are not obligated to manufacture any specific medication even if such medications are in short supply. Purchasing from foreign suppliers is a strategy distributors sometimes use to cope with drug shortages. Authors Dill and Ahn (2014) point out monitoring compliance of foreign suupliers is more challenging than monitoring and regulating facilities in one’s own country (2014). Another approach, used by some distributors, when medications are scare, is to turn to compounding facilities. According to Caulder, Mehta, Bookstaver, Sims, and Stevenson (2015) depending on compounding is a high risk practice. These authors explain that in some cases compounding practitioners do not have sufficient experience and contamination can occur (p. 180). Undoubtedly the most important goal is to avoid distribution of drugs that are contaminated. Using contaminated drug; and a subsequent recall, is the worst possible scenario for all

In pharma industry the raw materials mainly consist of organic chemicals. The need of different organic chemicals depends on the chemical formulae of drug. Pharmaceutical industry depends on various different organic chemicals for the production of end drugs. The chemical industry itself is very competitive and also very fragmented because their products (organic chemicals) are standardized and steps to produce them are also standardized. The chemicals used in pharma industry are commodity as pharmaceutical companies do production on economies of scale to lower the cost. The suppliers have low bargaining power because companies can switch to a new supplier without incurring a high cost. But there is a threat from supplier if it decides to go for forward integration and become a pharma industry

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

The Pyro pharmacy is a big upscale and mail request drug store that offers physician recommended solution at lower costs than different drug stores. The pharmacy has the capacity offer at diminished costs through the utilization of working efficiencies and the end of pointless administrations for clients that self-pay their medications. The Pyro pharmacy does not acknowledge protection installments which upset the income.