essay on global pharmaceutical industry

• Health, Pharma & Medtech ›
• Pharmaceutical Products & Market

Global pharmaceutical industry - statistics & facts

Top pharmaceutical companies, pharma industry by country, how much do companies spend on r&d, all eyes on pharma and biotech, key insights.

Detailed statistics

Pharmaceutical market: worldwide revenue 2001-2023

Global pharmaceutical market - revenue distribution 2010-2022, by region

Top therapeutic classes by global pharmaceutical sales 2018 estimates

Company Insights Top 100 health & pharmaceutical companies

Editor’s picks current statistics on this topic, current statistics on this topic.

Industry & Market

Total global pharmaceutical R&D spending 2014-2028

Pharmaceuticals

Number of novel drugs approved annually by CDER 2008-2023

Related topics

Recommended.

• Coronavirus (COVID-19) vaccines and treatments
• Pharmaceutical industry in the U.S.
• Top pharmaceutical drugs
• Merck & Co.

Recommended statistics

• Premium Statistic Pharmaceutical market: worldwide revenue 2001-2023
• Premium Statistic World pharmaceutical sales 2020-2023 by region
• Premium Statistic World pharmaceutical market distribution by submarket 2014-2023
• Premium Statistic Revenues of top 10 global pharmaceutical markets 2022
• Basic Statistic Top pharmaceutical products by sales worldwide 2023

Revenue of the worldwide pharmaceutical market from 2001 to 2023 (in billion U.S. dollars)

World pharmaceutical sales 2020-2023 by region

Global pharmaceutical sales from 2020 to 2023, by region (in billion U.S. dollars)

World pharmaceutical market distribution by submarket 2014-2023

Distribution of the total global pharmaceutical market sales from 2014 to 2023, by submarket

Revenues of top 10 global pharmaceutical markets 2022

Revenues of leading 10 national pharmaceutical markets worldwide in 2022 (in billion U.S. dollars)

Top pharmaceutical products by sales worldwide 2023

Leading pharmaceutical products by sales worldwide in 2023 (in billion U.S. dollars)

• Premium Statistic Top therapy classes by spending global market 2027 forecast
• Basic Statistic Global pharmaceutical revenue by technology 2012-2026
• Basic Statistic Worldwide Rx drug sales excluding generics and orphan drugs 2012-2026
• Basic Statistic Projection of global revenue for orphan prescription drugs 2016-2028
• Basic Statistic Worldwide generic prescription drug sales 2012-2026
• Premium Statistic Revenue of the OTC pharmaceuticals industry worldwide 2018-2029
• Premium Statistic Global oncology spending 2013-2024

Top therapy classes by spending global market 2027 forecast

Projected top therapy areas worldwide in 2027, by spending (in billion U.S. dollars)

Global pharmaceutical revenue by technology 2012-2026

Global pharmaceutical revenue distributed by technology from 2012 to 2026 (in billion U.S. dollars)

Worldwide Rx drug sales excluding generics and orphan drugs 2012-2026

Prescription drugs sales worldwide excluding generics and orphan drugs from 2012 to 2026 (in billion U.S. dollars)

Projection of global revenue for orphan prescription drugs 2016-2028

Global prescription orphan drug sales from 2016 to 2028 (in billion U.S. dollars)

Worldwide generic prescription drug sales 2012-2026

Worldwide generic prescription drug sales from 2012 to 2026 (in billion U.S. dollars)

Revenue of the OTC pharmaceuticals industry worldwide 2018-2029

Revenue of the OTC pharmaceuticals market worldwide from 2018 to 2029 (in billion U.S. dollars)

Global oncology spending 2013-2024

Global oncology spending from 2013 to 2024 (in billion U.S. dollars)

• Premium Statistic Top 50 pharmaceutical companies - Rx sales and R&D spending 2022
• Premium Statistic Top 10 biotech and pharmaceutical companies based on market cap 2024
• Basic Statistic Global pharma market share by top companies 2022
• Premium Statistic Pfizer's total revenue 2006-2023
• Premium Statistic Roche Group's total sales 2006-2023
• Premium Statistic Johnson & Johnson's total sales 2005-2023
• Basic Statistic AbbVie's revenue 2010-2023
• Basic Statistic Projected top pharmaceutical companies based on new sales 2023

Top 50 pharmaceutical companies - Rx sales and R&D spending 2022

Leading 50 global pharmaceutical companies by prescription sales and R&D spending in 2022 (in billion U.S. dollars)

Top 10 biotech and pharmaceutical companies based on market cap 2024

Leading 10 biotech and pharmaceutical companies worldwide based on market capitalization as of 2024 (in billion U.S. dollars)

Global pharma market share by top companies 2022

Leading pharmaceutical companies worldwide based on market share in 2022

Pfizer's total revenue 2006-2023

Pfizer's total revenue from 2006 to 2023 (in million U.S. dollars)

Roche Group's total sales 2006-2023

Total sales of the Roche Group from 2006 to 2023 (in million Swiss francs)

Johnson & Johnson's total sales 2005-2023

Johnson & Johnson's total sales from 2005 to 2023 (in million U.S. dollars)

AbbVie's revenue 2010-2023

AbbVie's revenue from 2010 and 2023 (in million U.S. dollars)

Projected top pharmaceutical companies based on new sales 2023

Leading pharmaceutical companies worldwide based on projected sales increase during 2023 (in billion U.S. dollars)

R&D, patents, new products

• Premium Statistic Total global pharmaceutical R&D spending 2014-2028
• Basic Statistic Global top pharmaceutical companies based on R&D spending 2026
• Premium Statistic Patent expiration risks for total worldwide prescription drug revenue 2023-2028
• Basic Statistic Worldwide prescription drug revenue - market risk from patent expiration 2023-2028
• Premium Statistic Pharmaceutical industry - number of new substances 1998-2022
• Basic Statistic Pharma companies worldwide with active R&D pipelines 2001-2023
• Premium Statistic Number of novel drugs approved annually by CDER 2008-2023
• Basic Statistic Projected most valuable R&D projects based on net present value 2023

Total global pharmaceutical R&D spending 2014-2028

Total global spending on pharmaceutical research and development from 2014 to 2028 (in billion U.S. dollars)

Global top pharmaceutical companies based on R&D spending 2026

Global top 10 pharmaceutical companies based on projected R&D spending in 2026 (in billion U.S. dollars)

Patent expiration risks for total worldwide prescription drug revenue 2023-2028

Worldwide total prescription drug revenue at risk from patent expiration from 2023 to 2028 (in billion U.S. dollars)

Worldwide prescription drug revenue - market risk from patent expiration 2023-2028

Share of global prescription drug revenue at risk from patent expiration from 2023 to 2028

Pharmaceutical industry - number of new substances 1998-2022

Number of new chemical or biological entities developed between 1998 and 2022, by region of origin

Pharma companies worldwide with active R&D pipelines 2001-2023

Total number of pharmaceutical companies with active R&D pipelines worldwide from 2001 to 2023

Total number of novel drugs approved by CDER from 2008 to 2023

Projected most valuable R&D projects based on net present value 2023

Selected top pharmaceutical R&D projects based on net present value (NPV) as of December 2023 (in billion U.S. dollars)

• Premium Statistic World pharmaceutical sales by region forecast 2027
• Premium Statistic Global spending on medicines 2010-2027
• Premium Statistic CAGR by product type in pharmaceutical markets forecast 2023-2027
• Basic Statistic Country comparison in spending on medicine 2026
• Basic Statistic Top global biopharma drugs by lifetime sales up to 2028
• Basic Statistic Sales forecast of top pharmaceutical companies worldwide 2028
• Premium Statistic Sales forecast of top selling drugs worldwide 2028

World pharmaceutical sales by region forecast 2027

Projected global pharmaceutical sales for 2027, by region (in billion U.S. dollars)

Global spending on medicines 2010-2027

Global spending on medicines in 2010, 2022, and a forecast for 2027 (in billion U.S. dollars)

CAGR by product type in pharmaceutical markets forecast 2023-2027

Projected pharmaceutical spending CAGR worldwide between 2023 and 2027, by market and product type

Country comparison in spending on medicine 2026

Projected spending on medicine of selected countries worldwide in 2026 (in billion U.S. dollars)

Top global biopharma drugs by lifetime sales up to 2028

Projected leading 10 pharmaceutical products worldwide based on lifetime sales as of 2028 (in billion U.S. dollars)

Sales forecast of top pharmaceutical companies worldwide 2028

Sales forecast of leading 10 pharmaceutical companies worldwide in 2028 (in billion U.S. dollars)

Sales forecast of top selling drugs worldwide 2028

Projected best selling pharmaceutical drugs worldwide in 2028 (in billion U.S. dollars)

Focus: COVID-19 response

• Basic Statistic Biotechs: duration of COVID-19 response compared to previous health threats 2003-2019
• Premium Statistic BARDA funding for the development of COVID-19 vaccines in the U.S. 2021
• Premium Statistic Shareholdings at select COVID-19 vaccine companies by investor 2021
• Premium Statistic Top companies by COVID-19 treatment vaccines in development June 2022
• Basic Statistic Comparison of select COVID-19 vaccines 2022, by efficacy
• Premium Statistic Distribution of COVID-19 vaccines worldwide by mechanism and phase 2022

Biotechs: duration of COVID-19 response compared to previous health threats 2003-2019

Duration of biotech companies' response to COVID-19 pandemic compared to other health threats between 2003 and 2019 (in months)

BARDA funding for the development of COVID-19 vaccines in the U.S. 2021

BARDA funding for the development of COVID-19 vaccines in the United States as of March 2021 (in million U.S. dollars)

Shareholdings at select COVID-19 vaccine companies by investor 2021

Major shareholdings at select COVID-19 vaccine manufacturers as of 2021, by investor

Top companies by COVID-19 treatment vaccines in development June 2022

Leading companies by number of COVID-19 drugs and vaccines in development as of June 3, 2022

Comparison of select COVID-19 vaccines 2022, by efficacy

Comparison of select COVID-19 vaccines worldwide as of 2022, by efficacy

Distribution of COVID-19 vaccines worldwide by mechanism and phase 2022

Distribution of COVID-19 vaccines in the R&D pipeline worldwide as of 2022, by mechanism of action and phase

Further reports Get the best reports to understand your industry

Get the best reports to understand your industry.

Mon - Fri, 9am - 6pm (EST)

Mon - Fri, 9am - 5pm (SGT)

Mon - Fri, 10:00am - 6:00pm (JST)

Mon - Fri, 9:30am - 5pm (GMT)

Emerging from disruption: The future of pharma operations strategy

In the past, many pharmaceutical companies (pharmacos) deprioritized operations strategy in the face of competing business pressures. This is now changing. Factors such as the COVID-19 pandemic, inflation, geopolitics, new therapeutic modalities, and new ways of working make it vital for pharmacos to carefully reconsider their long-term choices in sourcing, manufacturing, and supply chain.

Now is exactly the right time for this renewed emphasis on operations strategy, as pharmacos emerge from two years of intense firefighting. Succeeding in pharma under these new and challenging conditions will require succeeding in operations.

The focus for operational leaders may need to shift from the prevailing emphasis on continuous improvement—including cost savings, quality assurance, and constant readiness to deliver—to longer-term external challenges. These include high inflation and an increase in complexity and risk, as well as the compounding effects these forces have on each other.

Pharma operations leaders now have an opportunity to deliver even greater value to their organizations by achieving this shift in focus, but they must act quickly to keep abreast of the challenges confronting the industry. The effort will require enormous mobilization and thoughtful prioritization. This task will fall to leadership; only the CEO and head of operations are in the right positions to make it happen.

This article explores the challenges facing pharma leaders and the steps they can take to develop a more strategic, long-term, and integrated approach to operations strategy. It presents questions leaders can ask as they design the solutions needed to make sure operations can protect enterprise continuity while still delivering to patients.

A perfect storm of external challenges

The pharma industry is facing a multitude of challenging trends (Exhibit 1). Global demand is growing rapidly, and the unprecedented need for COVID-19 vaccines and therapeutics has put additional pressure on the industry. The industry’s ability to find innovative solutions to deliver COVID-19 vaccines while still meeting overall demand is a remarkable achievement, but rising global demand is still a significant challenge for the industry in the long term.

The product landscape also is changing swiftly. New modalities, such as cell and gene therapy and mRNA vaccine technology, have increased from 11 to 21 percent of the drug development pipeline—the fastest growth ever seen in the sector. This change is likely to bring more fragmentation of technology, new supply chains, and unique product life cycles.

In addition to these industry-specific trends, pharma has also been affected by broader global trends, such as supply chain pressures. While the pharma industry is considered somewhat protected by its high inventory levels and long-standing dual sourcing, over a given ten-year period, the likelihood of supply chain disruptions still represents a potential loss of 25 percent of EBITA . Inflation has risen in recent months to levels not seen for decades, leading to increasing costs for labor, raw materials, and transportation. This is over and above the persistent price pressures pharma is already facing, particularly in generics. Since pharma customers are not expected to fully absorb these cost increases, profit margins are under pressure.

Meanwhile, increased state interventions and protectionist trade policies are creating new pressures on manufacturing networks and could drive increased regionalization. This would be a capital-intensive exercise: to regionalize just 10 percent of current vaccine trade in one particular geographical region, governments would need to invest an estimated $100 million.

Would you like to learn more about our Operations Practice ?

The pharma industry is also facing talent shortages linked to wider labor market trends, including the 20 percent increase in demand for STEM-related roles across the life sciences industry in the United States. The current pool of pharma digital talent is at least 14 percent lower than demand, and many companies are finding it challenging to recruit technical talent. Compounding this challenge is the rise of remote working, which has increased employee expectations for flexibility. In response, nearly all pharmacos are experimenting with hybrid working models.

A few major trends point to an industry tailwind; one of them is the advancement of digital and analytics tools. Digital tools, robots, and sensors are becoming cheaper and easier to access, and they can be used to capture all manner of raw data. In addition, edge computing and cloud analytics are providing real-time optimization and transparency. Pharmacos are working to leverage the power of data to become more agile and resilient. However, to date, no pharmaco has emerged as a true global leader in this field.

The pharma industry is facing a multitude of industry-specific and global trends. But a few major trends point to an industry tailwind; one of them is the advancement of digital and analytics tools.

Each of these global trends represents significant challenges in and of itself, and the trends may be compounded and strengthened through their interactions. This compounding effect can add to the complexity of evaluating an effective strategic response.

Major implications for pharma

These global trends have six major implications for pharmacos: rising operational complexity, increasing risk, shifting capability requirements, higher capital expenditure requirements, variable-cost increases, and opportunities for savings (Exhibit 2).

Operations leaders may need to become comfortable navigating a more complex ecosystem as they respond to increased operational complexity. Risks may increase due to rising environmental, social, and governance (ESG) expectations and skills gaps, while new modalities and digital acceleration will also likely lead to a shift in capability requirements. This could necessitate reskilling and upskilling of staff, as well as a renewed focus on recruiting from outside of the pharma industry.

From a cost perspective, the pharma industry may see significantly increased capital expenditure requirements related to the construction of new sites and new digital infrastructure. Increases are also likely in variable costs in areas such as raw materials, transportation, and employee attrition, reskilling, and salaries.

Future of pharma operations

Pharma companies are experiencing a wave of innovations – from new treatment modalities, to smart machines, advanced analytics, and digital connectivity.

Although these implications are challenging, they may represent possible opportunities for savings in several areas. For example, ESG commitments on waste reduction could reduce costs, as could successful digital implementation. However, the challenge lies in monetizing these cost savings, given that the industry has long created value largely through revenue expansion rather than through cost savings.

Rising to the challenge: Actions to deliver value

To respond to these challenges, pharmaco leaders may now need to emphasize the importance of their operations strategy. They should consider taking a longer-term view and scaling activity across four key themes: network strategy and resilience, digital, operating model, and talent.

Expand focus on longer-term, transformative solutions

Operations leaders can address these challenges through several short-term and long-term responses. For example, problems associated with a more unpredictable supply chain could be addressed with a short-term approach of increasing inventory or a long-term initiative to establish an end-to-end supply chain digital nerve center.

Short-term levers can be an important part of the total response but are insufficient to fully mitigate the challenges facing the industry. To respond effectively, companies may need to accelerate new ways of working and embrace long-term thinking. This will require concrete action with a focus on making sure that strategies are put in place to weather the long-term headwinds the industry is facing.

Accelerate and scale responses across four strategic domains

To identify the actions that pharmacos could take, it may help to group these in terms of four strategic domains: network and resilience, digital strategy, operating model and ecosystem, and talent strategy (Exhibit 3). While these themes are likely to be familiar to any business leader, they now require a substantial shift in mindset. Acting on them also calls for a large investment of resources.

• Plan for and manage future resilience and reliability needs . Recent supply chain disruptions have pushed supply chain resilience up corporate agendas. Companies have been forced into reactive modes that employ short-term levers like building inventory. However, companies could better position themselves by solving multiple variables and building resilience into their operations strategy through longer-term actions like network design and dual sourcing.
• Scale end-to-end adoption of digital and automation . Digital has proven itself highly valuable to pharma operations. However, many companies struggle to move from targeted, single use cases to a fully scaled suite of solutions. And while the adoption of full-scale digital solutions can require heavy investment—around $50 million to $100 million per year for two to three years—the rewards can include significant cost savings, improved quality, and increased resilience, as well as greater employee effectiveness. Companies that truly scale and implement digital can better protect themselves from the pressures of the forces increasing costs for the industry. More and more companies are moving toward network-wide and end-to-end digitization; to date, the World Economic Forum has recognized 103 as “lighthouses,” based on their advanced application of digital technologies . Johnson & Johnson, for example, has successfully launched multiple Industry 4.0 lighthouses, including some focused on end-to-end patient connectivity and order fulfillment.
• Expand adoption of end-to-end partner ecosystems . Companies could also consider changing their operating model from a traditional hub configuration around originators to an end-to-end ecosystem of true strategic partners. More than 50 percent of companies already expect to intensify their collaboration models with other industry players through, for example, service agreements, joint ventures, or eco­systems. Some are already in motion; examples include Pfizer and BioNTech, which have already established a strategic partnership in mRNA technology discovery, and AstraZeneca and Huma, which are collaborating to scale innovation for digital health. These partnerships are indicative of increasing collaborations throughout the industry across functions.

Automation, centralization, and new job requirements may affect nearly 90 percent of today’s workforce, and to deal with this challenge, companies could adopt effective long-term strategies. Retaining talent is challenging in the present environment, with the share of workers planning to leave their jobs in the next three to six months standing at 40 percent since 2021 . 1 Aaron De Smet, Bonnie Dowling, Bryan Hancock, and Bill Schaninger, “ The Great Attrition is making hiring harder. Are you searching the right talent pool? ” July 13, 2022. Strategies for talent retention should therefore be broad and focus on more than just salary.

A viable long-term solution to talent shortages may need to involve more than increasing wages to attract people. To solve structural talent gaps, companies could ensure long-term reskilling and upskilling of the existing workforce. For example, Roche runs an operations rotational program to attract top talent with bachelor’s and master’s degrees, and early in the COVID-19 pandemic, Novartis launched a “choice with responsibility” policy to improve overall employee experience.

Successfully developing a robust operations strategy is complex and requires dedicated resources with the ability to focus on the medium to long term. This means the C-suite will need to prioritize efforts and provide adequate resourcing. Only the CEO and head of operations can set the appropriate direction for their organization, steer their company’s effort, gather the right skills and teams, and manage complex interdependencies and resource-intensive interventions.

Are companies doing enough?

As COOs look to emerge from the disruption of the past two years, reflecting on several questions could help them evaluate their organizations’ level of preparedness to respond to the trends affecting the industry. The process could provide foundational answers to inform a renewed operations strategy.

• Have you projected the impact of today’s current trends on your business?
• Do you have a focused, skilled, and scaled operations strategy team that identifies, prioritizes, and deploys initiatives across different horizons?
• Are your resilience measures proactive and dynamic, and are they being built on talent and digital capabilities to achieve greater agility and reliability?
• Have you experienced greater access to innovation and flexibility as a result of expanding your services and strategic partnerships?
• Has your digital strategy created benefits across your network and transformed your operation from digitally enabled to digitally driven?
• Have you achieved ESG improvements, and do you have a broad, long-term road map for ESG commitments (beyond net zero)?
• Has your operating model been agile enough to adapt to rapidly changing operations requirements, such as new modalities and potential disruptions?
• Have you successfully transformed your operations workforce and comprehensively improved the employee experience?
• Do you have an established governance process that incorporates past lessons into future strategy?

Although the pharma industry has performed a remarkable feat in delivering COVID-19 vaccines while also meeting growing demand, current trends create a challenging environment for pharma­ceutical companies. Companies face greater costs, complexity, and risk.

Now is the time to rethink operational strategy to respond to these trends and remain competitive. Such change may have associated challenges and will require bold and innovative leadership. But if companies successfully implement new strategies, they could position themselves to take advantage of the industry’s remarkable growth.

Hillary Dukart is an associate partner in McKinsey’s Denver office, Laurie Lanoue is a partner in the Montreal office, Mariel Rezende is a consultant in the Miami office, and Paul Rutten is a partner in the Amsterdam office.

The authors wish to thank Joe Hughes and Jean-Baptiste Pelletier for their contributions to this article.

Explore a career with us

Related articles.

Against the odds: How life sciences companies excel in large transformations

Four ways to make sure your pharma manufacturing strategy delivers value

Operations can launch the next blockbuster in pharma

Recommended

About us | Advertise with us | Contact us

Behind the numbers: The pharmaceutical industry and global health

Posted: 10 May 2017 | | No comments yet

IFPMA’s top analyst examines future trends, biotherapeutics and personalised medicine, and explains why the industry needs to examine its economic footprint…

The most indisputable of all facts on global health is that we’re living longer and healthier lives than ever, and in an era of continuous health improvement. What were once considered life-threatening diseases are now manageable conditions, and not just for patients, but for our health systems also.

Where Hepatitis C, for example, would have in the past required a long-term treatment and lately liver transplant that significantly reduced a patient’s quality of life, medical advances mean that 90-95% of patients can now be cured after receiving an 8-12 week treatment. Peptic ulcers, previously carrying a 300-day recovery post-surgery and a hefty $17,000 price tag, can now be simply treated thanks to the antibiotics ‘revolution’, keeping patients without the need for invasive surgery and expensive hospital beds for under $1,000.

Sustainable healthcare

What these figures unequivocally show is that improving patients quality of life and reduc ing health system pressures are both possible through the valuable contribution of the research-based pharmaceutical industry, ultimately leading to healthier, more productive and sustainable societies. The International Federation of Pharmaceutical Manufacturers and Associations ( IFPMA )  2017 Facts & Figures report and microsite put forward a snapshot of this value using statistics that are difficult to contest, easy to remember, and an indispensable reference to explain how innovation must be fostered to continue generating this value for society.

Research and Development

The research-based pharmaceutical sector is one of the most innovative in the world, saving millions of lives. Literally billions of dollars are spent every year developing the drugs to combat HIV/AIDS, diabetes, cancer and other serious illnesses. More than software and computer services and other high tech industries. The effort is mammoth: of over 7,000 compounds under researcher’s microscopes in 2015, 56 were launched as new medicines.

Economic footprint

The report is built around three sections. The first deep-dives into statistics on the scale of pharmaceutical innovation . The second looks at the global health landscape and looks at increased life expectancy, decreased infant mortality and the scale of the budgetary burdens of aging populations.

Finally, the economic footprint of the pharmaceutical industry is quantified as positively affecting society and economic growth: from the 40% of the industry’s jobs created by IFPMA members alone, to the market expansion in “pharmerging” countries, to the global brand spending forecasted to reach $815 billion by 2021.

Positive progress

The research-based pharmaceutical industry has a unique role developing new and improved medicines to prevent and treat diseases. Five-hundred million people have been immunised since the turn of the century. Deaths from measles were down 79% between 2000-2014. HIV/AIDS related deaths have more than halved between 2005 and 2015, thanks to new treatments and better access for patients.

Strategic alliances

With results like this, we demonstrate our ongoing commitment to foster innovation, advance global health, and build strong strategic alliances across the world that benefit the whole of society. As an advocacy tool, this compendium of facts demonstrates that the pharmaceutical industry is here to improve the health of our populations and support the efficacy of our healthcare systems, working as one of the combination of vital actors needed at the global health table.

IFPMA members can bring the R&D and scaled outputs needed for us to be greater than the sum of our parts when we work together with systems and policy makers, to bring better healthcare to patients around the world.

Global health community

This is an exciting, quantifiable moment for healthcare advances, but the pharmaceutical industry must at the same time keep looking forward, constantly rethinking how to maximise positive impacts. This means continuing to work together with the other actors in the global health community, while doing what we do best: analysing the changes in patients’ needs and responding with new medicines to keep society healthy.

Rise in personalised medicine

For example, we will see a continuing rise in biotheraputics and personalised treatment as a proportion of all new drugs launched, as just one example of a responsive trend in the pharmaceutical pipeline.

Epidemic threat

As the industry also works together to become better prepared for global health threats and epidemics like Ebola and pandemic influenza, scientists, manufacturers and governmental institutions will all need to continue to join forces to develop, test, and introduce new medicines and vaccines to save lives.

IFPMA is proud to convene some of the most influential pharmaceutical manufacturers and promote collaboration to keep building the healthcare systems of tomorrow. Sharing the most recent facts and figures can help to prove the successes of the past and quantify the challenges of the future, with all parts working together for a better outcome for patients.

Related topics

Research & Development (R&D)

Related organisations

Applying ISO/TR 14644-21 – Airborne particle sampling techniques

Microbial burden assessment of solid pharmaceutical products

By Catherine Eckford (European Pharmaceutical Review)

Genentech oncology treatment granted first-of-a-kind approval

Webinar: How Pfizer utilises Enzyme Indicator technology for bio-decontamination validation

By Protak Scientific Limited

Enhancing competitiveness of European life sciences

Leave a reply cancel reply.

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed .

© Russell Publishing Limited , 2010-2024. All rights reserved.

Website development by e-Motive Media Limited .

Cookie Settings

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorised as ”Necessary” are stored on your browser as they are as essential for the working of basic functionalities of the website. For our other types of cookies “Advertising & Targeting”, “Analytics” and “Performance”, these help us analyse and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these different types of cookies. But opting out of some of these cookies may have an effect on your browsing experience. You can adjust the available sliders to ‘Enabled’ or ‘Disabled’, then click ‘Save and Accept’. View our Cookie Policy page.

Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.

Sustainability in the Global Pharmaceutical Industry from the Perspective of Several Researchers

• Conference paper
• First Online: 29 March 2024
• Cite this conference paper

• Laura-Crina Coca 11 &
• Marius Pislaru 11  

Part of the book series: Lecture Notes in Networks and Systems ((LNNS,volume 928))

Included in the following conference series:

• International Conference Interdisciplinarity in Engineering

27 Accesses

Over the last years, the awareness of the importance of sustainability as a key issue for every company’s performance has grown considerably. Companies are increasingly being asked to perform their activities in the most environmental friendly way, not only with regard to internal processes but also in relation to their customers and suppliers, throughout their value chain.

The purpose of the research is to identify at what stage the subject of sustainability is in the pharmaceutical industry and if it is one of interest and impact. We selected full papers and reviews published in peer-reviewed journals in the business/management/accounting area. Approaches of various companies have been identified in terms of maintaining sustainability in a company, highlighting strengths, weaknesses, challenges and opportunities of the pharmaceutical industry that define it as a topic of interest and topicality, having a factor of great global economic, social and environmental impact. In our research, it was observed that most of the researchers put the environmental problem in the foreground. The thematic analysis of the full papers shows four distinct areas of study of the green dimension as follows: cleaner production, green supply chains, green human resource management and green materials.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Institutional subscriptions

EFPIA. The Pharmaceutical Industry in Figures. Key Data (2019). https://www.efpia.eu/media/412931/the-pharmaceutical-industry-in-figures-2019.pdf . Accessed 29 Oct 2019

http://refhub.elsevier.com/S2452-2236(18)30021-X/sref2

IPCC, A.R., et al.: Climate change 2013: the physical science basis. In: Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change, p. 1535 (2013)

Google Scholar  

Kolk, A., van der Veen, M.L., Hay, K., Wennink, D.: KPMG International Survey of Corporate Sustainability Reporting 2002. Amsterdam (2002)

Dyllick, T., Hockerts, K.: Beyond the business case for corporate sustainability. Bus. Strategy Environ. 11 , 130–141 (2002)

Sanchez, M.A.: Integrating sustainability issues into project management. J. Clean. Prod. 96 , 319–330 (2015)

Azapagic, A., Stamford, L., Youds, L., Barteczko-Hibbert, C.: Towards sustainable production and consumption: a novel decision-support framework IntegRating economic, environmental and social sustainability (DESIRES). Comput. Chem. Eng. 91 , 93–103 (2016)

Article   Google Scholar  

Moldan, B., Janouskova, S., Hak, T.: How to understand and measure environmental sustainability: indicators and targets. Ecol. Indicator. 17 , 4–13 (2012). https://doi.org/10.1016/j.ecolind.2011.04.033

Mohr, L.A., Webb, D.J.: The effects of corporate social responsibility and price on consumer responses. J. Consum. Aff. 39 , 121–147 (2005). https://doi.org/10.1111/j.1745-6606.2005.00006.x

Bom, S., Jorge, J., Ribeiro, H.M., Marto, J.O.A.N.A.: A step forward on sustainability in the cosmetics industry: a review. J. Clean. Prod. 225 , 270–290 (2019). https://doi.org/10.1016/j.jclepro.2019.03.255

Kaenzig, J., Friot, D., Saade, M., Margni, M., Jolliet, O.: Using life cycle approaches to enhance the value of corporate environmental disclosures. Bus. Strat. Environ. 20 , 38–54 (2011). https://doi.org/10.1002/bse.667

Bax, R.: How to evaluate and predict the ecologic impact of antibiotics: the pharmaceutical industry view from research and development (2001). https://doi.org/10.1046/j.1469-0691.2001.00074.x

Dunn, P.J., Galvin, S., Hettenbach, K.: Green Chem. 6 , 43–48 (2004)

Federsel, H.-J.: In search of sustainability: process R&D in light of current pharmaceutical industry challenges (2006). https://doi.org/10.1016/j.drudis.2006.09.012

Gadipelly, C., et al.: Pharmaceutical industry wastewater: review of the technologies for water treatment and reuse. Ind. Eng. Chem. Res. 53 (29), 11571–11592 (2014)

Van der Vorst, G., Van Langenhove, H., De Paep, F., Aelterman, W., Dingenen, J., Dewulf, J.: Exergetic life cycle analysis for the selection of chromatographic separation processes in the pharmaceutical industry: preparative HPLC versus preparative SFC. Green Chem. 11 (7), 1007–1012 (2009)

Slater, C.S., Savelski, M.J., Ruiz-Felix, M.N.: Life cycle analysis of solvent reduction in pharmaceutical synthesis using continuous adsorption for palladium removal. J. Environ. Sci. Health Part A 48 , 1602–1608 (2013)

Corporate Sustainability Report, 2013–14. Jubilant Life Sciences. www.jubl.com

Heras-Saizarbitoria, I., Arana, G., Boiral, O.: Outcomes of environmental management systems: the role of motivations and firms’ characteristics. Bus. Strateg. Environ. 25 (8), 545–559 (2016)

Pyyot, D.E.I.: Sustainability for the Future. Allergan Sustainability Performance Report (2015)

Sheldon, R.A.: Green chemistry and resource efficiency: towards a green economy. Green Chem. 18 (11), 3180–3183 (2016a). Sheldon, R.A.: The E Factor 25 years on: the rise of green chemistry and sustainability. Green Chem. 1–61 (2016b)

Ramasamy, S.V., T-Hooker, N.J., Lettieri, P.: Life cycle assessment as a tool to support decision making in the biopharmaceutical industry: considerations and challenges. Food Bioprod. Process. 94 , 297–305 (2015)

Lozano, R.: Sustainability inter-linkages in reporting vindicated: a study of European companies. J. Clean. Prod. 51 , 57–65 (2013)

Jolliffe, H.G., Gerogiorgis, D.I.: Process modelling and simulation for continuous pharmaceutical manufacturing of artemisinin. Chem. Eng. Res. Design 112 , 310–325 (2016)

Zahiri, B., Zhuang, J., Mohammadi, M.: Toward an integrated sustainable-resilient supply chain: a pharmaceutical case study (2017). https://doi.org/10.1016/j.tre.2017.04.009

Sieckmann, F., Ngoc, H.N., Helm, R., Kohl, H.: Implementation of lean production systems in small and medium-sized pharmaceutical enterprises (2018). https://doi.org/10.1016/j.promfg.2018.02.188

Belkhir, L., Elmeligi, A.: Carbon footprint of the global pharmaceutical industry and relative impact of its major players (2019). https://doi.org/10.1016/j.jclepro.2018.11.204

Negash, Y.T., Sarmiento, L.S.C., Tseng, M.-L., Jantarakolica, K., Tan, K.: Sustainable product-service system hierarchical framework under uncertainties: the pharmaceutical industry in Ecuador (2021). https://doi.org/10.1016/j.jclepro.2021.126188

Okereke, M.: How pharmaceutical industries can address the growing problem of climate change (2021). https://doi.org/10.1016/j.joclim.2021.100049

Hadinoto, K., Tran, T.-T., Cheow, W.S.: Beyond tablets’ physical characteristics: incorporating environmental sustainability metrics into the selection of lubricants for pharmaceutical tableting (2022). https://doi.org/10.1016/j.jclepro.2022.132336

http://refhub.elsevier.com/S2452-2236(18)30021-X/sref15

Matus, K.J., Clark, W.C., Anastas, P.T., Zimmerman, J.B.: Barries to the implementation of green chemistry in the United States. Environ. Sci. Technol. 46 , 10892–10899 (2012)

Young, W., Hwang, K., McDonald, S., Oates, C.J.: Sustainable consumption: green consumer behaviour when purchasing products. Sustain. Dev. 18 , 20–31 (2010)

Liu, J., et al.: Systems Integration for global sustainability. Science 347 , 1258832 (2015)

Turner, J.A.: Sustainable hydrogen production. Science 305 , 972–974 (2004)

Okampo, E.J., Nwulu, N.: Optimisation of renewable energy powered reverse osmosis desalination systems: a state-of-the-art review. Renew. Sustain. Energy Rev. 140 , 110712 (2021). https://doi.org/10.1016/j.rser.2021.110712

Prisciandaro, M., Capocelli, M., Piemonte, V., Barba, D.: Process analysis applied to water reuse for a “closed water cycle” approach. Chem. Eng. J. 304 , 602–608 (2016). https://doi.org/10.1016/j.cej.2016.06.134

McCarty, P.L., Bae, J., Kim, J.: Domestic Wastewater Treatment as a Net Energy Producer-Can be this Achieved? ACS Publications (2011)

Elimelech, M., Philip, W.A.: The future of seawater desalination: energy, technology, and the environment. Science 333 , 712–717 (2011)

Li, X., Hamblin, D.: Factors impacting on cleaner production: case studies of Chinese pharmaceutical manufacturers in Tianjin, China. J. Clean. Prod. 131 , 121–132 (2016). https://doi.org/10.1016/j.jclepro.2016.05.066

Blum-Kusterer, M., Hussain, S.S.: Innovation and corporate sustainability: an investigation into the process of change in the pharmaceuticals industry. Bus. Strat. Environ. 10 , 300–316 (2001). https://doi.org/10.1002/bse.300

Singh, R.K., Kumar, R., Kumar, P.: Strategic issues in pharmaceutical supply chains: a review. Int. J. Pharmaceut. Healthc. Market. 10 , 234–257 (2016). https://doi.org/10.1108/IJPHM-10-2015-0050

Gardas, B.B., Raut, R., Narkhede, B.E.: Analysing the 3PL service provider’s evaluation criteria through a sustainable approach. Int. J. Prod. Perform. Manag. 68 , 958–980 (2019). https://doi.org/10.1108/IJPPM-04-2018-0154

Veleva, V., Bodkin, G., Todorova, S.: The need for better measurement and employee engagement to advance a circular economy: lessons from Biogen’s “zero waste” journey. J. Clean. Prod. 154 , 517–529 (2017). https://doi.org/10.1016/j.jclepro.2017.03.177

Saeed, B.B., Afsar, B., Hafeez, S., Khan, I., Tahir, M., Afridi, M.A.: Promoting employee’s proenvironmental behavior through green human resource management practices. Corp. Soc. Responsib. Environ. Manag. 26 , 424–438 (2019). https://doi.org/10.1002/csr.1694

Masri, H.A., Jaaron, A.A.M.: Assessing green human resources management practices in Palestinian manufacturing context: an empirical study. J. Clean. Prod. 143 , 474–489 (2017). https://doi.org/10.1016/j.jclepro.2016.12.087

Sudhakar, M.P., Kumar, B.R., Mathimani, T., Arunkumar, K.: A review on bioenergy and bioactive compounds from microalgae and macroalgae-sustainable energy perspective. J. Clean. Prod. 228 , 1320–1333 (2019). https://doi.org/10.1016/j.jclepro.2019.04.287

Mirabella, N., Castellani, V., Sala, S.: Current options for the valorization of food manufacturing waste: a review. J. Clean. Prod. 65 , 28–41 (2014). https://doi.org/10.1016/j.jclepro.2013.10.051

Manda, B.M.K., Worrell, E., Patel, M.K.: Innovative membrane filtration system for micropollutant removal from drinking water - prospective environmental LCA and its integration in business decisions. J. Clean. Prod. 72 , 153–166 (2014). https://doi.org/10.1016/j.jclepro.2014.02.045

Weraikat, D., Zanjani, M.K., Lehoux, N.: Two-echelon pharmaceutical reverse supply chain coordination with customers incentives. Int. J. Prod. Econ. 176 , 41–52 (2016). https://doi.org/10.1016/j.ijpe.2016.03.003

Download references

Author information

Authors and affiliations.

Faculty of Industrial Design and Business Management, Gheorghe Asachi Technical University of Iasi, Iasi, Romania

Laura-Crina Coca & Marius Pislaru

You can also search for this author in PubMed   Google Scholar

Corresponding author

Correspondence to Laura-Crina Coca .

Editor information

Editors and affiliations.

Faculty of Engineering and Information Technology, “George Emil Palade” University of Medicine, Pharmacy, Science and Technology of Targu Mures, Târgu Mureș, Romania

Liviu Moldovan

Adrian Gligor

Rights and permissions

Reprints and permissions

Copyright information

© 2024 The Author(s), under exclusive license to Springer Nature Switzerland AG

About this paper

Cite this paper.

Coca, LC., Pislaru, M. (2024). Sustainability in the Global Pharmaceutical Industry from the Perspective of Several Researchers. In: Moldovan, L., Gligor, A. (eds) The 17th International Conference Interdisciplinarity in Engineering. Inter-ENG 2023. Lecture Notes in Networks and Systems, vol 928. Springer, Cham. https://doi.org/10.1007/978-3-031-54671-6_8

Download citation

DOI : https://doi.org/10.1007/978-3-031-54671-6_8

Published : 29 March 2024

Publisher Name : Springer, Cham

Print ISBN : 978-3-031-54670-9

Online ISBN : 978-3-031-54671-6

eBook Packages : Engineering Engineering (R0)

Share this paper

Anyone you share the following link with will be able to read this content:

Sorry, a shareable link is not currently available for this article.

Provided by the Springer Nature SharedIt content-sharing initiative

• Publish with us

Policies and ethics

• Find a journal
• Track your research

• Pharmaceutical Engineering Magazine
• Online Exclusives
• Special Reports
• Facilities & Equipment
• Information Systems
• Product Development
• Production Systems
• Quality Systems
• Regulatory Compliance
• Research + Development
• Supply Chain Management
• White Papers
• iSpeak Blog
• Editorial Calendar
• Article of the Year
• Submit an Article
• Editorial Team

Building Resilient and Sustainable Pharmaceutical Supply Chains

The global pharmaceutical industry has faced unprecedented challenges in recent years, with the COVID-19 pandemic serving as a wake-up call for the vulnerabilities within the pharmaceutical supply chain. As the world strives to emerge from the grip of the pandemic and restore activities reminiscent of pre-pandemic times, uncertainties surrounding supply chain stability persist. The 2023 ISPE Annual Meeting & Expo comes at a crucial time, addressing Supply Chain Resiliency and Sustainability to provide the industry with essential insights, strategies, and best practices.

The conference recognizes that valuable lessons can be learned from the pandemic and applied to future planning for the possibility of another pandemic or even a tripledemic. Global health authorities have been actively developing guidance and recommendations to mitigate disruptions in the supply chain, ensuring secure patient access to critical medicines. Regulatory efforts aim to improve planning and preventative measures, while some governments have implemented legislative measures encouraging onshoring as a protective measure to insulate domestic supply chains from disruption.

In parallel with these efforts, the ISPE Drug Shortages Initiative team has developed expanded guidance on drug shortage prevention, addressing the quality, technical, and regulatory aspects. This initiative demonstrates the industry's proactive approach to secure the supply chain, mitigate drug shortages, and be prepared for the possibility of a future pandemic. The conference will provide a platform for regulators and experts to share their experiences and efforts in securing the supply chain and proactively preparing for future challenges.

With a focus on supply chain resiliency and sustainability, the conference sessions cover a wide range of topics critical to the success of pharmaceutical companies. These include optimizing supply chain operations, lifecycle management, lab transformation, sustainable development, and navigating emerging markets. Attendees can expect to gain valuable insights, practical strategies, and actionable knowledge to thrive in an industry that demands resilience, sustainability, and adaptability.

By coming together at the 2023 ISPE Annual Meeting & Expo, pharmaceutical professionals can collaboratively Shape the Future of Pharma™. With a shared commitment to building resilient and sustainable supply chains, the conference aims to equip attendees with the tools and knowledge needed to navigate uncertainties, mitigate disruptions, and ensure uninterrupted access to life-saving medications for patients worldwide.

Acknowledging Supply Chain Stability Uncertainties:

As the world attempts to emerge from the pandemic and restore pre-pandemic activities, uncertainties surrounding supply chain stability persist. Lessons learned from the pandemic form the foundation for planning and preparing for future crises, including the possibility of another pandemic or even a tripledemic. Regulatory guidance and recommendations from global health authorities have emerged to enhance supply chain resilience and ensure uninterrupted patient access to critical medicines. Additionally, some governments have introduced legislative measures encouraging onshoring to insulate domestic supply chains from disruption. This session emphasizes the importance of aligning with regulatory efforts and offers expanded guidance on drug shortage prevention.

Optimizing Supply Chain Operations and Lifecycle Management:

Pharmaceutical companies face significant challenges in supply chain operations, lifecycle management, and lab transformation. Experts from leading industry players will share their experiences and best practices during this insightful session. They will explore supply chain flexibility and resilience, highlighting strategies that enable multiple pathways for safe and efficient product delivery. Lifecycle management discussions will delve into the challenges posed by supply chain disruption, cost pressures, and regulatory expectations, offering valuable lessons and strategies to maintain continuity of supply and profitability. Additionally, the session will shed light on the impact of digitalization and sustainable practices in lab transformation, focusing on workforce transformation, data integrity, lab quality control, and compliance.

Promoting Sustainable Development and Governance:

Sustainability plays a vital role in building resilient and efficient pharmaceutical supply chains. The conference will feature an engaging session that showcases innovations and best practices in sustainable development and governance. Attendees will gain valuable insights into environmental stewardship, energy efficiency, waste reduction, and responsible manufacturing practices. Integrating sustainability into pharmaceutical operations will be emphasized, highlighting the positive impact it can have on the industry's bottom line and public perception. This session aims to equip attendees with practical strategies to promote sustainability and foster responsible pharmaceutical manufacturing.

Navigating Emerging Markets: Challenges and Opportunities:

Expanding into emerging markets presents unique challenges and opportunities for pharmaceutical companies. A dedicated session will provide valuable insights into the regulatory and market dynamics involved in successfully launching products in these regions. Attendees will gain a comprehensive understanding of the cultural, legal, and operational considerations necessary to navigate emerging markets effectively. Supply chain security and product quality will also be addressed, highlighting the risks, vulnerabilities, and strategies to mitigate them. The session will delve into the role of technology, such as connected labs, in enhancing supply chain security and product quality, ultimately improving patient safety. Finally, The SERUM's NISHWAS project receives the FOYA 2023 award in the "Supply Chain" category for rapidly establishing a pharmaceutical manufacturing capability during a crisis. The Genentech Clinical Supply Center (CSC) project wins the FOYA 2023 Pharma 4.0™ category, showcasing the benefits of digital technologies and innovative planning in improving construction, safety, productivity, and patient access to medicines.

The 2023 ISPE Annual Meeting & Expo offers an exceptional platform for pharmaceutical professionals to gain insights and strategies for building resilient and sustainable supply chains. With a focus on supply chain resiliency and sustainability, attendees will discover practical approaches to navigate uncertainties, mitigate disruptions, and ensure uninterrupted patient access to critical medicines. The conference's sessions will share valuable lessons from the pandemic, best practices in supply chain operations and lifecycle management, and insights into sustainable development and governance. By embracing these insights, the pharmaceutical industry can enhance its resilience, promote sustainability, and continue to meet the healthcare needs of patients worldwide.

We hope you join us in Las Vegas, NV, USA for the 2023 ISPE Annual Meeting & Expo and the Supply Chain Resiliency Sessions!

Learn More & Register

• 'Share on Twitter'

About the Author

Related Articles

Stability sampling and testing are key to ensuring that products maintain safety, identity, strength, purity, and quality throughout their claimed shelf life. It is also a regulatory requirement per ICH Q5. However, storing product samples in different environmental conditions, testing those samples for three to five years (or more) after initial manufacture, and properly analyzing and...

ISPE hosted more than 450 attendees in person and virtually for the 2024 ISPE Aseptic Conference in Vienna, Austria. Keynotes and education sessions provided a comprehensive overview of key topics and trends...

Biopharmaceutical facility design is a critical aspect of the industry. Overall cost pressures in the global health system, regional requirements to deploy manufacturing rather than centralize manufacturing in one location, technology enhancements in cell biology and format, flexibility to accommodate multi-product campaigns with different production schedules, and speed-to-market are among...

Pharmaceutical Industry and Drugs Case Study

Introduction, market size and major players, research and development.

Pharmaceutical industry has been on the upward over the recent years. This attributes to the growing demand of pharmaceutical products because of changing lifestyles experienced in the modern life. Pharmaceutical industry has a responsibility of developing, producing and marketing of drugs licensed for medication purposes.

It is the only body allowed in dealing with drugs having met the set conditions, which vary from country to country. This research paper will analyze the pharmaceutical industry based on its market size, research and development as well as regulation governing entry of new drug in the market.

Global pharmaceutical market has been reporting an upward trend, which projects to continue over the coming years. Many researches done so far projects that the global pharmaceutical market will produce a total of more than a trillion dollars in its revenue for the year 2012. This is because of the changes that the pharmaceutical industry is undergoing leading to more growth than before.

Some of the current changes in the pharmaceutical markets include the shifting growth from the developed markets, increased focus on biotech developed drugs and approval of new drugs (PRLOG, 2012). Some of the leading players who take nearly half of products in the market are Pfizer, Novartis, Bayer, GlaxoSmithKline, Sanofi among others.

The pharmaceutical expenditures are on the upward trend due to the pharmaceutical consumption experienced all over the world. The total number of pharmaceutical bills by 2007 was estimated to be USD 650 billion among the OECD countries accounting to 15 percent of the health spending.

United States is the leading country in pharmaceutical expenditures per capita of $7,960 followed by Norway and Switzerland. Other leading countries include Netherlands, Luxembourg, Canada, Denmark and Austria respectively (OECD, 2012).

Globalization plays an important role in the pharmaceuticals markets, which is worth mentioning. The states of the third world countries have improved because of globalization from direct participation worldwide. Globalization eases the integration of different countries in forming umbrella bodies with no trade barriers.

This has necessitated the free movement of pharmaceutical products worldwide. It has created global competition among leading brands in the pharmaceutical industry due to movements and marketing by companies. It has enabled the pharmaceutical companies in the long-term planning as they look for business opportunities in some parts of the globe (Kesic, 2009).

Research plays an important role of innovating new products, which meets the market demand. As world’s population grows day by day, so does the need for more innovations in solving the emerging problems. Frequent research and developments leads to new products in the market to be used in treating different illness experienced in daily life.

There are a number of agencies which funds research and developments. In some cases, American federal meets the cost of research and developments of drugs in collaboration with the public sector. Over the past years, the federal has laid out policy research, which they have funded to a tune of billions through private and public sectors in US (Austin, 2007).

Similarly, pharmaceutical companies do meet the cost of research and development, which is latter, passed to consumers through buying the products. The global competition and increased need of resistance drugs are pushing private and pharmaceutical companies to research and develop drugs that meets the need of the public.

Meeting the market demand with new products is very important for pharmaceutical company’s research and developments (Swayne, Duncan & Ginter, 2008). Every company is striving in satisfying its clients and developing brand loyalty with them.

This makes pharmaceutical companies thrive continuously in producing and innovating new products, which meets the expectation of their customers. Developing strong brands is more important to pharmaceutical companies as it enables them to achieve a competitive advantage.

Food and Drug Administration (FDA) has the mandate of protecting and promoting health of the public through ensuring their safety. It plays a role in approving drugs, which takes two phases namely: clinical trials (CT) and new drug application (NDA).

The drug approval process by FDA begins after the client has submitted investigational new drug application(IND) showing preclinical information, which justifies the testing of the drug to humans. In many cases, US subjects 85 % of applications to clinical trials. This ensures safety of the drugs before allowing them into the market (Guarino, 2009).

The next stage in the approval process involves phase I of clinical trials, which takes 1-3 years on subjects involving human beings. There is evaluation of safety of the drug and its pharmaceutical contents are at this stage. Phase II trials take two years and only done when a drug successfully passes the first phase.

This phase includes evaluation of dosage, broadness of the efficacy and there might be additional safety procedures performed at this phase. If the examination becomes successful at this stage, it proceeds to the third phase, which takes 3-4 years (Guarino, 2009).

Phase III is concerned with effectiveness and safety of the developed drug. It takes data from different populations and dosage of up to 3000 people in checking its effectiveness. Successful passing these three stages allows for new drug application (NDA). Some of the information considered includes drug manufacturing and its labeling, data analysis and pharmacokinetics of the drug.

A team of Scientist in the Centre of Drug Evaluation and Research also takes clinical and preclinical reports and any analysis in masking it conforms to the laid down procedures of safety measurement.

The approval of NDA may take up-to two years, but the company is allowed to market the drug after successful passage and approval of NDA before proceeding to phase IV. Phase IV involves exploration of new population as well as the drugs long-term effects and the response of the participants to the dosage (Guarino, 2009).

Pharmaceutical industries are involved in research and development because of increased demand for their products. Globalization has played a critical role in marketing their products because they can easily reach other parts of the world without difficulties.

Despite the increased demand, which has necessitated more production, the major players are incurring the high cost in relation to research and development of new products. The cost for developing new drugs is passed to the consumer who pays higher in buying the drugs. This concept explains why United States is leading consumers of pharmaceutical products.

Austin, T. (2007 ). Research and development in the pharmaceutical industry, BO study . Washington DC: Government Printing Press.

Guarino, R. (2009). New Drug Approval Process . 5th ed. London: Taylor &Francis

Kesic, D. (2011 ). Pharmaceutical industry in strategic development . 2 (6), 29-37. Web.

OECD (2009). Health at Glance 2009 OECD indicators: OECD indicators . Canada: OECD Publishing.

PRLOG (2012). Global Pharmaceutical market forecast to 2012 . Web.

Swayne, L, Duncan, W & Ginter P. (2008). Strategic management of health care organizations . 6th ed. West Sussex: John Wiley.

• Chicago (A-D)
• Chicago (N-B)

IvyPanda. (2019, December 22). Pharmaceutical Industry and Drugs. https://ivypanda.com/essays/pharmaceutical-industry/

"Pharmaceutical Industry and Drugs." IvyPanda , 22 Dec. 2019, ivypanda.com/essays/pharmaceutical-industry/.

IvyPanda . (2019) 'Pharmaceutical Industry and Drugs'. 22 December.

IvyPanda . 2019. "Pharmaceutical Industry and Drugs." December 22, 2019. https://ivypanda.com/essays/pharmaceutical-industry/.

1. IvyPanda . "Pharmaceutical Industry and Drugs." December 22, 2019. https://ivypanda.com/essays/pharmaceutical-industry/.

Bibliography

IvyPanda . "Pharmaceutical Industry and Drugs." December 22, 2019. https://ivypanda.com/essays/pharmaceutical-industry/.

• Salix Pharmaceuticals: Colazal Pharmaceutical Agent
• Relationship Between Doctors and Pharmaceutical Industries
• Pharmaceuticals Industry Analysis
• China's Pharmaceutical Research Internationalization
• Pharmaceutical Drug Addiction Among African American Male Adolescents
• Dosage & Regimen for MEK Inhibitor: Cancer Clinical Trial
• Promotion of Pharmaceutical Drugs
• Immigration, Socioeconomic and Upward Mobility and Cultural Assimilation
• The Process of Developing and Launching a New Pharmaceutical Product
• The Rise of the Indian Pharmaceutical Industry
• Pharmaceutical Industry Importance
• Biomarkers Definition Working Group
• Medical Marijuana use for Terminal Colon Cancer
• Evidence of drug shortage in the United States currently
• Practices in the Pharmaceutical Industry

ESSAY SAUCE

FOR STUDENTS : ALL THE INGREDIENTS OF A GOOD ESSAY

Essay: The global pharmaceutical industry

Essay details and download:.

• Subject area(s): Business essays
• Reading time: 10 minutes
• Price: Free download
• Published: 21 June 2012*
• File format: Text
• Words: 2,861 (approx)
• Number of pages: 12 (approx)

Text preview of this essay:

This page of the essay has 2,861 words. Download the full version above.

The global pharmaceutical industry

THE GLOBAL PHARMACEUTICAL INDUSTRY

Introduction.

According to Hunter s. Thomas “you can turn your back on person, but never turn your back on a drug, especially when it’s waving a razor sharp hunting.” The global pharmaceutical industry had done tremendous contribution to mankind, but now pharmaceutical companies are facing tough time in a decade. The case is broken in to different parts which is emphasized on how internal and external factors affecting the industry firstly, the main environmental forces currently affecting the industry through PEST analysis. Secondly, the implications of the changes in business environment that is internal factors through porter’s five force theory. Finally, the use and limitations of the tools applied to solve case are discussed.

ORIGIN AND EVOLUTION

The present pharmaceutical industries are non-assembled and more of competitive but it had emerged in early 19th century in the Rhine valley near Basel Switzerland where dyestuffs were found to have antiseptic properties. Companies like Hoffman-la rochy, Sandoz, Novartis are all started as Rhine based family dyestuff and chemical companies, which are still doing tremendous business even to day. Slowly these chemical companies started making pharmaceuticals and synthetic chemicals and evolved as global players. In early 1940’s the industry showed drastic changes such as introduction of penicillin and other drugs. In 1960’s industry growing rapidly with the setting up of R&D not only this economies prospered by the spending on health care in same period. In 1970’s industry showed major development but a strong regulatory controls also came into existence with this development, and this regulatory controls had removed the rule of permanent patent to some fixed period which resulted in birth of branded generics.

ENVIRONMENTAL FORCES EFFECTING PHARMACEUTICAL INDUSTRY

The scan of external macro environment in which the firm operates can be expressed in terms

POLITICAL FACTORS AFFECTING THE SECTOR

Political factors includes government regulations and legal issues defines both formal and informal rules under which firm operates some example like tax policy, trade restrictions and tariffs, political stability. Political arena has huge influence up on the regulations of business and the spending power of consumers and other business. Over many years the pharmaceuticals industry has increased political attentions because of increase in recognitions of the economic important of healthcare as a component of social welfare . It takes 10-15 years on average to experiment drug to travel from lab to patient consumption, as patent protection is fixed that is only 20 years but companies has to spend 15 years on experiments by the time it reaches to the market the patent will be almost comes to expired and which will result in birth of generic medicines which has exactly same ingredients as of branded drugs but shows huge difference in price, because the generic brand does not spend on clinical trials so the entry of generic are the major impact on pharmacy industry because of the legal policy set by political forces example in us 84% of sales had been dropped in 12 weeks by Allegra hay fever treatment because of expiry of patent in 2006. Another major problem affecting the industry in many countries are monophony which means only one powerful purchaser who are government. Since 1980 government around the world attracting pharmaceuticals as a politically easy target in their effort to control l in increasing health care expenditure like price and reimbursement controls and also the industry loosed both public and political support to resist this change. In 1990 the effect of economic recession had lead to fall in tax revenue, the government forever changing cost containment plans had become operations of the company unstable in European market which is highly fragmented, moreover the expansion of EU had provided many opportunities but it also raised new challenges from generics and low priced imports.

ECONOMIC FACTORS AFFECTING THE SECTOR

Economic factors affect the purchasing power of potential customers and the firms cost of capital examples like economic growth, interest rates and exchange rates. The government price control is a major challenge to the industry in the form of parallel trade. Parallel trade is nothing but free movement of the product across the Europe with out any trade barriers which will affect the local manufacture because the distributor will buy drugs in low price markets and export them to high price markets example buying the product from manufacture in Poland and exporting them to Ireland. The exchange rates and currency problem is also one of the major issue for example Canada has inflexible pricing and reimbursement criteria, where USA does not have price controls as a results the price drug in America is high compare to Canada which leads to damage of brand image in consumers mind for example price of Lipitor is 3.20/pill in USA where in Canada which is 1.89/pill for same drug. Not only this, the growth of pharmaceutical market is aligned with GDP growth. As R&D productivity is declined and development times were lengthened, as clinical trials are becoming more complex and costly there was sharp rise in R&D expenditure.

SOCIAL CULTURAL FACTORS AFFECTING THE SECTOR

Social factors includes the demographic and cultural aspects of the external macro environment these factors effects customers needs and the size of potential markets, some social factors include health consciousness, population growth rate, age distribution, emphasis on safety and carrier attitudes. ageing populations are creating pressure on healthcare funding systems as over 65 consumes four times more than that of below 65 which leads to more expensive technology solutions and increase in patient expectations had created an unsustainable situation to the industry. Some countries cannot enjoy universal coverage system and latest treatments because they are not funded by the insurance companies like USA which can afford latest technology but cannot share the benefits because of increasing populations in different parts of the world. In developed countries consumer are benefited by the insurance and can afford ethical drugs but the countries who cannot afford to ethical drugs are switching to generic to save coast which pressuring pharmacists to substitute generic drug as the first choice, patented drugs are only used if generic drug fails. The OTC(over the counter) comprise of 20% of market which may purchase without prescription specially OTC is more in developing countries and also for these the patented drug companies has introduce disease management initiatives to attack the challenges from generic. Some consumer does not want to use biopharmaceuticals because they genetically done.

TECHNOLOGICAL FACTORS AFFECTING THE INDUSTRY

Technological factors can lower barriers to entry, reduce minimum efficient production levels and influence outsourcing decisions. Some of the technological factors includes R&D activity, technology incentivise and rate of technology change. the technology is an competitive advantage to the companies and success of R&D lays in team working, knowledge management and close relation with external flexible and some indicates lean and flexible operations and out sourcing is a gate way of success not only these there are many questions raised that the investment on R&D is could not sustain for example in 2005 there are nearly 650 cancers drugs in development. The utilization of technology is very expensive because it includes latest instruments which is possible only for developed countries to use technology because they are funded by insurance companies and product developed by this technology cannot afford in developing countries because of its huge investment.

THE IMPLICATIONS OF THE CHANGING BUSINESS ENVIRONMENT OF THE PHARMACEUTICAL INDUSTRY

Porter’s five force model

“The porter’s model is an outside in business unit strategy tool used to know value of industrial structure. The competitive force analysis is made by the identification of five fundamental competitive forces.”(12MANAGE:2009)

POTENTIAL ENTRANCE

The threat of new entry is low in this sector because companies has to spend huge amount to produce a product, so investment for the capital is very huge and its as to follow many rules and regulations set up by the government and to maintain the standard which where set is very difficult for new companies which want to enter into market. More over it is very risky business because it takes 10-15 years for new market to come into market and nobody is sure about the success of the products and patent time is also limited.

POTENTIAL SUPPLIER

Bargaining power of supplier is low because there are only few suppliers because the suppliers in this industry are different from other industries as ingredients used to make drugs are chemicals so the suppliers are chemical industries. It is very difficult for the suppliers to sustain in the market because if they increase their price the company may change supplier who supply raw materials comparatively low price compare to existing one and industry is not key customer group to the supplier. Brand image, role of quality, service of supplier is not considered by the industry.

POTENTIAL BUYERS

Bargaining power of buyer is high because main buyers are generally government and the companies that is monophony and companies cannot go against them and they can only sell the product to government the other side of the buyer are consumers who’s buying power is also high because of substitute available in markets and brand loyalty is low in consumers.

POTENTIAL SUBSTITUTES

Threat of substitutes is high in this industries, there are many substitute products in market like generics, branded generics, biopharmaceuticals as they are very cheap compare to the branded drugs as discussed earlier that branded drugs will consider only when generic drugs fails. And import of drugs from china and India which are produce very cheaply compare to local producers.

COMPETITIVE RIVALRY

Competitive rivalry is high in this sector because advantage gained by the first mover advantages (patent). As market is getting saturating companies are going global which means world wide launches, global branding and heavy investment in promotion as shorter product life cycle and to gain competitive advantage. In spite of taking care during launching the industry is still faces tough time from generic drugs and not only this merges and acquisitions as one of the major cause for competitive rivalry.

SWOT ANALYSIS OF PHARMACEUTICALS

“Swot analysis provide information that is helpful in matching firm resources and capabilities to the competitive environment in which it operates.”(QUICKMBA: 2007)

The environmental factors internal are strength and weakness and external are threats and opportunities.

OPPORTUNIITIES

Uses and limitations of tools.

Pest analysis looks at the external environment and good tool to understand big picture of the environment in which business operates. And it will allow companies to take opportunities and reduces threat of a company which they are facing. Pest analysis provide further plan to a company to develop if strategic plan is done correctly. With the pest analysis companies can see longer horizontal time and able to differentiate opportunities and threats and also help companies to look outside environment and what are the potential forces which going to affect. Pest is a mnemonic standing for political, economic, social and technology which are use to brain storm the characteristics of a industry and can draw conclusion as the significant forces of change operating with in it. More over it is useful to avoid taking actions which results in failure, it is very useful especially in starting new products because it will avoid assumptions and make to adopt quickly the reality of the new environment, it is straightforward and easy to adopt, broad categories covering major environmental factors and will provide more data about influence.

LIMITATIONS

It is not a set of rigid compartment to store ideas more over pest analysis does not analyse all the details in the external environments like markets, share holder, creditors, supra-national bodies, pressure groups and labour markets.

PORTER’S FIVE FORCE USE

Porter’s five forces theory is valuable contribution to study competition it give important information in three aspects.

STATICAL ANALYSIS:

It determine industrial attractiveness and gives an over view of profitability, this model helps in entry and exit questioning a market segment and used to compare influence of competitor forces and influence of competitors .

DYNAMICAL ANALYSIS:

It helps to understand potential future attractiveness of the industry.

ANALYSIS OF OPTIONS:

The knowledge and power of five forces help company to develop options to improve position of the company which results in new strategic direction like new differentiation for competitive products of strategic partnerships.

Moreover, porter’s five force models gives systematic and structured analysis of market structure and competitive situation, this model is applicable universal such as particular company, market segment and industries.

Care should be taken while using this model such as never under estimate the important of current strength of the company. The model design for analyzing individual business strategies and it will not support the interdependence and synergy with portfolio of larger corporate. If we look from the theoretical side the model does not show possibility that an industry could be attractive because some companies in it. More over some times it may be possible to create complete new markets instead of selecting from existing one and also some people argued that environments which are characterized by rapid, systemic and quick changes require more flexible, dynamic approach for strategy formations.

SWOT ANALYSIS USE

The name it self say it is used to identify company’s strengths, weakness, opportunities and threats. And use to formulate strategies the analysis usefulness of SWOT is not limited to profit seeking organizations. It is used in decision making situation when a desired end -state has been defined, and it is used in pre crisis planning and prevention and also used to in creating a recommendation during a viability study

It has ability to over simplify the situation by dividing the firms environmental factors into categories in which they may not fit. The classifications of some factors as strength or weakness, or as opportunities or threats is some what peculiar

The pharmaceutical industry made tremendous contribution to man kind but, the industry is facing tough time in this decade. Yet it is targeted by government, media in spite of huge investment on R&D and the product life is getting shorter. Free trade, parallel trade and exchange rate are moreover the birth of generics, creating major problems to the industry. Niche areas getting crowded creating price pressure, but the presence of global expertise firms like Pfizer, Merck will stand as global opportunities. The industry more than ever needs to get a handle on the slippery business of scientific creativity and provided it critics with indisputable evidence of its value.

BIBLIOGRAPHY

Johnson et.al (2007). Exploring corporate strategy. 8th ed. England: Pearson Education. 915

Quickmba. (2007). Swot analysis. Available: http://www.quickmba.com/strategy/swot/. Last accessed 30 Oct 2009.

Answers corporations. (2009). Swot analysis. Available: http://www.answers.com/topic/swot-analysis. Last accessed 30 Oct 2009.

12 manage. (2009). Five Competitive Forces. Available: http://www.12manage.com/methods_porter_five_forces.html. Last accessed 30 Oct 2009.

Olivia Hunt. (2008). Evaluation of five force theory. Available: http://www.articlesbase.com/education-articles/evaluation-of-the-five-forces-theory-176854.html. Last accessed 01 Nov 2009.

Olivia Hunt. (2007). Study of Porter’s Five Forces Theory. Available: http://www.articlealley.com/article_185592_15.html. Last accessed 01 Nov 2009.

Netmba. (2007). PEST ANALYSIS. Available: http://www.netmba.com/strategy/pest/. Last accessed 01 Nov 2009.

Quickmba. (2007). PEST ANALYSIS. Available: http://www.quickmba.com/strategy/pest/. Last accessed 02 Nov 2009.

Verbigena. (2008). History and analysis of pharmaceutical industry. Available: www.verbigena.com/case_studies/history_analysis.pdf. Last accessed 10 Nov 2009

Papers4u. (2009). what is pest analysis. Available: http://www.coursework4you.co.uk/essays-and-dissertations/pest-analysis.php. Last accessed 10 Nov 2009

G.A. Cole (2005). Strategic Management. 2nd ed. London: person. 506

...(download the rest of the essay above)

About this essay:

If you use part of this page in your own work, you need to provide a citation, as follows:

Essay Sauce, The global pharmaceutical industry . Available from:<https://www.essaysauce.com/business-essays/the-global-pharmaceutical-industry/> [Accessed 20-04-24].

These Business essays have been submitted to us by students in order to help you with your studies.

* This essay may have been previously published on Essay.uk.com at an earlier date.

Essay Categories:

• Accounting essays
• Architecture essays
• Business essays
• Computer science essays
• Criminology essays
• Economics essays
• Education essays
• Engineering essays
• English language essays
• Environmental studies essays
• Essay examples
• Finance essays
• Geography essays
• Health essays
• History essays
• Hospitality and tourism essays
• Human rights essays
• Information technology essays
• International relations
• Leadership essays
• Linguistics essays
• Literature essays
• Management essays
• Marketing essays
• Mathematics essays
• Media essays
• Medicine essays
• Military essays
• Miscellaneous essays
• Music Essays
• Nursing essays
• Philosophy essays
• Photography and arts essays
• Politics essays
• Project management essays
• Psychology essays
• Religious studies and theology essays
• Sample essays
• Science essays
• Social work essays
• Sociology essays
• Sports essays
• Types of essay
• Zoology essays

The Global Pharmaceutical Industry Functions Economics Essay Example

• Pages: 11 (2754 words)
• Published: October 16, 2017
• Type: Essay

Abstraction

The societal, economic, and demographic context of the global pharmaceutical industry is changing significantly. Developed economies with increasing healthcare costs are looking to profit from healthcare spending. Developing economies in Africa, CIS & Middle-East are also undergoing dynamic changes due to government initiatives. The MENA (Middle-East & North Africa) pharma market is expected to grow at a CAGR of around 9.5% during 2011-2013, driven by rising health consciousness, disease prevalence, and healthcare expenditure. Despite potential political issues, the pharma market in this region will continue its growth. South Africa, Saudi Arabia, Algeria, and Egypt are identified as the primary emerging markets in the region and are predicted to maintain their dominance. However, there is untapped potential in other countries like UAE, Nigeria, CIS, and Israel that drug companies can leverage.

To take advantage of opportunities in the Middle-East & Africa pharma marke

t, multinational companies are exploring ways to enter through individual efforts or collaborations. Establishing joint ventures or entering distribution agreements with local companies can give multinational corporations an edge in understanding market dynamics and meeting specific needs.Countries like China and India offer hope for the global pharmaceutical industry due to their development skills and scientific talent. The valuable contributions of India are particularly crucial for pharmaceutical companies facing challenges in growth and innovation. Indian pharmaceutical companies aim to change the perception of being a low-cost industry by contributing modestly through intellectual property protection laws, incentives, tax benefits, and improved marketing and distribution channels.

Health is considered both a cause and consequence of economic development, as recognized by the UN Millennium Development Goals. The pharmaceutical industry is viewed as a player that can contribute to economic development

Additionally, this industry brings significant socio-economic benefits through job creation, supply chains, and community development.

Some stakeholders believe that the pharmaceutical industry should play a larger role in economic development by not only advancing their own activities but also indirectly enhancing healthcare infrastructure. It is important for healthcare companies to recognize their responsibility towards vulnerable individuals who rely on their products and services.

The Indian pharmaceutical industry has gained global recognition through strategic initiatives, industry efforts, and supportive policies within the highly successful knowledge-based manufacturing sector.The pharmaceutical industry in India currently meets about 95% of the country's medicine demand and is involved in activities such as contract manufacturing, research, clinical trials, R contracts, and exports to both developed and developing markets. It is also becoming a major supplier of generic drugs globally and a hub for R activities including new drug discovery and clinical trials. However, this sector faces challenges from new patent regulations and competition from low-cost production centers like China. To stay competitive, the industry has been adjusting its strategies by embracing joint ventures, foreign direct investments (FDI), mergers, and acquisitions (M). The success of the Indian pharmaceutical industry can be attributed to factors like a well-developed manufacturing base, cost-effective research capabilities, and a skilled workforce. The pharmaceutical market in the Middle East and Africa region is expected to grow at a compound annual growth rate of approximately 9.5% from 2011 to 2013 due to regulatory changes aimed at boosting the domestic industry and attracting foreign players.Currently, South Africa, Saudi Arabia, Algeria, and Egypt dominate the pharmaceutical industry in the Middle East and Africa region due to their superior infrastructure and regulatory environments. The African

pharmaceutical industry heavily depends on importing drugs and therapeutics from European countries, particularly generics that are affordable. Governments in Middle East and Africa are actively promoting pharmaceutical manufacturing through favorable policies, incentives, and investments to support future growth. Russia's recent national population census shows a decline in population over the past eight years primarily due to a high mortality rate. This decline significantly affects Russia's economic development, necessitating government efforts to improve drug quality and affordability for the population. Despite the increased availability of drugs in the pharma market, high prices still hinder access for many consumers. The CIS is working on strengthening their healthcare systems, creating opportunities for Indian pharmaceutical companies to enter emerging markets. Both developed and developing countries prioritize the pharmaceutical sector due to its importance for public health and strategic advantages in knowledge-based economies like India.Countries like India, China, Singapore, Korea, Czech Republic, Brazil, and Argentina are experiencing significant growth in the pharmaceutical industry. The global pharmaceutical market is highly dynamic and involves substantial spending on research and development as well as extensive regulation. In 2006, global pharmaceutical sales reached around $643 billion which was a 7% increase from the previous year. Since 1999 when sales were at $334 billion, there has been a consistent compound annual growth rate of 10%. North America dominates with 48% of global sales followed by Europe with 30%, while Japan accounts for 9%. Key therapy categories in the pharmaceutical market include lipid regulators (5.8%), oncologic drugs (5.7%), respiratory agents (4%), acid pump inhibitors (4%), and anti-diabetic medications (3.5%). According to PwC's pharma 2020 study titled "Challenging business models," it is suggested that global pharmaceutical companies

must undergo a fundamental transformation of their operating model in order to capitalize on future growth opportunities.The study highlights several industry trends, including a focus on delivering results and the impact of changing demographics. It also emphasizes the benefits of monitoring conformity for patients, payers, and suppliers. Another trend is the shift from treatment to prevention. The study notes an increase in mergers and acquisitions activity and the role of new technologies in driving research and development (R&D). There is also a mention of outsourcing pharmaceutical R&D.

The traditional linear R&D process is being replaced with an in-life testing and live licensing approach. Greater international regulatory cooperation is expected, along with growing convergence licensing between biopharmaceuticals. The blockbuster sales model is disappearing, while the money-making potential of supply chain functions remains significant.

Advanced direct-to-consumer distribution channels have reduced the need for intermediaries. Companies like Lilly and BMS have already embraced collaborative models influenced by internal and external factors. These transformative business models have led to an upsurge in mergers, acquisitions consolidations,and partnerships within the pharmaceutical sector.

Understanding various ways to enter the pharmaceutical industry is vital due to the significant costs associated with untreated conditions when there is no market presence. Monopolies or duopolies exist in several markets within this industry.Competition typically leads to lower prices, so it's crucial to comprehend factors that impede further market entry considering concerns about pharmaceutical costs.The pharmaceutical industry consists of branded drug makers, generic drug makers, companies developing biopharmaceutical products, over-the-counter drug makers, and firms engaged in contract research. In addition, universities, hospitals, and research centers contribute to research and development (R) activities.

In terms of the pharmaceutical industry in Africa specifically, there

are challenges despite notable achievements. Insufficient access to essential medications leads to numerous deaths worldwide every year, particularly in low-income developing countries. According to the World Health Organization (WHO), certain African nations have around 50% of their population lacking access to life-saving medicines. Many developing countries within the Organization of Islamic Cooperation (OIC) also struggle with inadequate or non-existent capacities for pharmaceutical manufacturing. These nations heavily rely on imports and medical aid as their domestic pharmaceutical industry only meets a small portion of the demand. In some countries, patients have to pay between 40% and 60% out-of-pocket for healthcare payments related to medications. This lack of access to essential medicines results in preventable diseases causing death among a significant part of the population.Most African countries have limited capabilities for producing pharmaceuticals domestically. However, Egypt's pharmaceutical market is thriving with an estimated value of around US $1.7 billion in 2007. Egypt supplies over 90% of its domestic production and accounts for 30% of the pharmaceutical market in the Middle East and North Africa region.

According to Mahendra Bhardwaj, Ranbaxy's African head, Ranbaxy's manufacturing facility in Morocco demonstrates their commitment to both Morocco and the entire African continent. Recent changes to Morocco's national health insurance strategies will provide additional support for the healthcare sector, particularly for those with lower incomes, states a study by Espicom.

U.S. exporters can find promising opportunities in Algeria with reliable Algerian agents or distributors' assistance;however, developing this market successfully requires time and resources, making it less ideal for small to medium-sized enterprises. The healthcare and pharmaceutical industry in Algeria is considered a highly promising market.

Since 2000, consumer spending in Sub-Saharan Africa has been steadily

increasing at a rate of 4% per year, reaching $600 billion by 2010. However, despite this growth, the region only accounts for 24% of the global burden of disease and less than 1% of global health expenditures. Patients themselves finance around half of Sub-Saharan Africa's total health expenditures. The World Health Survey conducted in 2003 found that the percentage of out-of-pocket health payments for medicines varied greatly among surveyed countries, ranging from 11% in Chad to 62.2% in Burkina Faso. Sub-Saharan Africa's pharmaceutical market value was valued at $3.8 billion in 2006, representing only 0.6% of the global market. Among the 44 countries in SSA, only a small number have significant pharmaceutical production capabilities. South Africa leads as the largest producer with over a 70% share, followed by Nigeria with a share of around 10%. Other OIC member states like Senegal, Cote d'Ivoire, and Uganda also contribute to medical specialties production on a smaller scale.

Despite its potential beyond real estate investments, companies seeking growth opportunities should not overlook Africa due to its size and potential. The continent is experiencing growth in consumer markets thanks to improved income levels, infrastructure development, and an enhanced business environment. According to a study by Euro-monitor in 2011, consumer spending is projected to reach $1 trillion by 2020 in Africa.

However, companies entering the continent must adjust their strategies and expectations due to unreliable logistics and lagging infrastructure readiness compared to developed countries. This presents challenges when trying to fully understand potential opportunities available. In the MENA region, specifically in the Middle-East Pharmaceutical market, it made up around 1.8% of the global market in 2006, totaling approximately US $12 billion (Pharmaceutical & Biotechnology

Middle East - PABME). Most countries in this area have a limited domestic pharmaceutical industry. Among the GCC states in MENA, Saudi Arabia leads with 27 local pharmaceutical manufacturing plants and an investment of US $619 million. The Saudi Arabian pharmaceutical industry produced medicines worth US $320 million in 2006 compared to just US $187 million in 2000. However, local production only meets 15% of the demand while imports fulfill the remaining 85% of the domestic market's needs.

Jordan's pharmaceutical industry is another significant player within MENA and consists of 17 factories employing about 3.5% of Jordan's industrial sector workforce. It stands as the second largest export-earning industry after garment manufacturing. The value of medicines produced by Jordanian pharmaceutical industry experienced a notable increase from $185 million in 2003 to $350 million in 2005. Local production covers approximately half of the domestic market demand.

Within MENA, UAE has one of the highest cost pharmaceutical markets with per capita medicine expenditure at around $80. There is a growing global demand for generic pharmaceuticals which is increasing rapidly at a compound annual growth rate (CAGR) of about 12%.The growth in the demand for generics in the GCC and MENA regions is driven by patent terminations and rising healthcare costs. It is predicted that by 2020, the demand for generics in the GCC region alone will reach $1 billion compared to its current level of $300 million. In the larger MENA region, it is expected to increase from approximately $500 million to $2.5 billion by 2020. These growth rates may be even higher depending on healthcare policies implemented by authorities in GCC and MENA countries.

To capitalize on these expanding markets,

generics manufacturers are looking for opportunities through acquisitions or expanding their production capacity in low-cost countries (LCC) like Kuwait, UAE, and Oman where there is currently a low domestic pharmaceutical production base available. While Egypt relies mainly on local manufacturing to meet its pharmaceutical consumption with 90% of the country's needs being produced domestically, Saudi Arabia imports a significant 85% of its pharmaceutical products.

The regulatory environment for this industry is influenced by various factors such as economic conditions, business practices, changes in domestic manufacturing capabilities, and shifting disease profiles. Traditionally, drug imports have been the focus in the region with local production primarily centered around generics. However, addressing issues related to merchandise enrollment and intellectual property rights concerning World Trade Organization (WTO) ranks and European Union Agreements is necessary.Despite challenges related to data exclusivity and intellectual property rights in the Middle Eastern market, there are plenty of opportunities for pharmaceutical companies looking to expand in the region. However, caution should be exercised due to uncertain geopolitical situations and ongoing regulatory and economic reforms. The CIS states have large markets for pharmaceutical products that offer favorable acceptance of Indian products and good value for money. These markets also lack price control measures, allowing companies to achieve better prices. Chairman of the Pharmaceutical Export Promotion Council, DB Mody, sees the CIS pharmaceutical market as a lucrative opportunity worth USD 20 billion. Pharma company Lupin plans to expand its presence in Russia and Ukraine by capitalizing on factors such as an aging population, changing lifestyles, increasing incomes, and government spending on healthcare. To achieve this expansion, Lupin has formed local partnerships with future potential and cross-functional synergies in

mind. Their focus in the CIS region is on offering differentiated products like Value Added Generics, Branded Generics, and their own branded products.In order to adapt to the ever-changing market dynamics in the region, Lupin focuses on brand-building exercises for specific products such as IXIME, Dr.KASHEL, SOFTOVAC, RIBAVIN, ONE-BE, and GATISPAN. The pharmaceutical market in the CIS region is considered highly dynamic and one of the fastest-growing globally. From 2003 onwards, it has consistently grown at an average rate of 10-12% per year. In 2009, despite a decrease of 8% in the country's GDP, the market experienced significant growth of 22% in RUB (Russian currency), but a drop of 5% when measured in USD. Sales only increased by 6% the following year due to consumer activity slowing down and new regulations implemented through the Federal Law "On Turnover of Medicines." However, if regulations remain unchanged or become less strict, it is predicted that there may be a growth rate of up to 12% in sales for2011.

The growth of the Russian drug company market could face challenges due to a decrease in the number of apothecary's shops and limited availability of medical specialties in remote areas. This is expected because apothecary's shops are facing an increased societal tax burden from 14% to 34%. It is projected that by 2011, the market volume will reach RUB400-500 billion (USD13-16 billion) and by2020 it will reach RUB1000-1500 billion (USD30-50 billion) at consumer prices. However, for this growth to occur, per capita consumption of medical specialties needs to increase and match European levels while also improving demographic situations.Per capita consumption in Russia in 2009 was USD123, which is higher than

other CIS countries but still significantly lower compared to Europe. International companies primarily sell branded generics in Russia as it aligns with the current distribution structure of the market. The main consumers are individual buyers who are influenced by advertising and marketing strategies. This benefits international manufacturers as imported medicines dominate the Russian market. Consequently, there has been a lack of investment in research and development by these companies, focusing instead on marketing and publicity efforts.

In 2009, out of the 463 medicines listed by DLO, only 70 were advanced medical specialties while 181 were strictly imported drugs. Domestically produced medications accounted for just 31 on that list. Insufficient production volumes from the national drug company are indicated by the fact that there were 251 medications that were both imported and domestically produced.

The Russian pharmaceutical industry supplies 70% of medications in physical volume to both the national healthcare system and hospital sector but only accounts for 19% of the healthcare sector's medication turnover in value. Most of the industry's production consists of low-profit generics, with a majority being imported and less than a quarter being nationally produced.The industry's limited presence on international markets and unresolved standard harmonization issues cause regular problems. Plans have been made to fully convert national drug company production in Russia to GMP standards by 2014. There are approximately 600 accredited national pharmaceutical industries in the Russian Federation, primarily located in Moscow, Nizhniy Novgorod, Kursk, Kurgan Regions, Bashkortostan, Tatar Stan, and Western Siberia (including Novosibirsk, Tomsk, and Omsk). Currently employing around 65 thousand people, only 10% of them possess sufficient manufacturing skills. An additional 10 thousand employees require training for advanced production. This

shortage of qualified personnel is the main reason for acquiring licenses in the initial two stages outlined in the Strategy. The top 10 companies in the Russian pharmaceutical industry represent 30% of all national medical specialties' value.

• Johnson & Johnson Internal and External Analysis Essay Example
• Johnson And Johnson Is A Holding Company Commerce Essay Example
• The History Of The Business Environment Business Essay Example
• Observations Of Operations Management Albert David Pharmaceutical Production Business Essay Example
• Modern Health Issues Essay Example
• What Went Wrong with Aig Essay Example
• Exercise description in the book Essay Example
• Comparing and Contrasting Essay Example
• Practice Fusion Essay Example
• Media Coverage of Health Care Reform Act Essay Example
• Dorothea Orem Self Care Theory Essay Example
• Advanced Practice Essay Example
• Strategies at Banner Health Care Essay Example
• Single-system design. Meditation to decrease anxiety. Essay Example
• System Analysis and Design Proposed Titles Essay Example
• Hospital essays
• Physician essays
• Health Care Provider essays
• Universal Health Care essays
• Readmission essays
• American Dream essays
• Barriers To Entry essays
• Capitalism essays
• Central Bank essays
• Compensation essays
• Consumerism essays
• Economic Development essays
• Economic Growth essays
• Economic Inequality essays
• Economic System essays
• Economy essays
• Employment essays
• Export essays
• Finance essays
• Free Trade essays
• Gross Domestic Product essays
• Human Development essays
• Income Inequality essays
• Industry essays
• Inflation essays
• International Business essays
• International Trade essays
• Macroeconomics essays
• Materialism essays
• Max Weber essays
• Microeconomics essays
• Minimum Wage essays
• Monetary Policy essays
• Monopoly essays
• Pricing essays
• Profit essays
• Recession essays
• resources essays
• Taxation essays
• Trade essays
• Unemployment essays
• Warehouse essays
• World economy essays
• Addiction essays
• Anatomy and Physiology essays
• Biodegradation essays
• Cancer essays
• Dental Care essays
• Disability essays
• Disease essays

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards.

• Enter your topic/question
• Receive an explanation
• Ask one question at a time
• Enter a specific assignment topic
• Aim at least 500 characters
• a topic sentence that states the main or controlling idea
• supporting sentences to explain and develop the point you’re making
• evidence from your reading or an example from the subject area that supports your point
• analysis of the implication/significance/impact of the evidence finished off with a critical conclusion you have drawn from the evidence.

Unfortunately copying the content is not possible

Tell us your email address and we’ll send this sample there..

By continuing, you agree to our Terms and Conditions .

• Intellectual property
• Technology transfer
• Enabling trade
• Universal Health Coverage
• Non-communicable diseases
• Infectious diseases
• Rare diseases
• Digital health
• Pandemic preparedness
• Access to pathogens
• Falsified medicines
• Climate change
• Antimicrobial resistance
• Collaboration, convergence, and regulatory reliance
• Quality, safety, and efficacy of therapeutical products
• Biotherapeutics and advanced therapies
• Upholding ethics and business integrity
• Supporting Africa’s health ecosystem
• Flagship initiatives
• Partnerships and alliances
• Industry roundtables

• Press releases
• Position papers
• External studies
• Infographics
• Expert insights
• Press briefings
• Secretariat
• Governance and leadership
• Associations
• Become a member

How we are contributing to global pharmaceutical standards

The evolving global pharmaceutical regulatory environment and the increasing interest of new countries in joining the ICH highlights the importance of maintaining consistent interpretation and implementation of ICH guidelines among industry and regulatory authorities worldwide.

The International Federation of Pharmaceutical Manufacturers and Associations (IFPMA), along with other ICH Members and Observers, has an important role in promoting global convergence toward ICH regulatory standards and their harmonized interpretation.

Download this two-pager to learn more about how IFPMA represents the pharmaceutical industry in ICH.

Related news and resources

Regulatory agilities applied to vaccines during the covid-19 pandemic and recommendations for the future.

This position paper outlines some key regulatory agilities implemented in areas such as research and development, regulatory evaluations, authorizations, and post-approval changes (PACs) and labelling. Key learnings and recommendations to enhance regulatory frameworks in the future are also included.

Lessons from regulatory agilities during the COVID-19 pandemic: views from members of National Regulatory Authorities

This report aims to explore the perspective of members of NRAs on the use of regulatory agilities which emerged during the COVID-19 pandemic and describe lessons learnt from this experience.

Industry perspectives on implementation of Quality Overall Summary-Product Dossier (QOS-PD) and Quality Information Summary (QIS) for innovative medicinal products

In view of a growing complexity of product lifecycle management, industry puts forward perspectives to support the harmonization of regulatory requirements. These are intended to facilitate efficient regulatory review and approval to support timely implementation of changes and product improvements, leading to more resilient supply chains.

Share on Mastodon

• Skip to main content
• Skip to main navigation
• Skip to footer

Development of Digital Twins across the organization

Time: 11:30 - 12:30pm | Amgen, 360 Binney St. Cambridge, MA 02142 USA | Type of event: In person