The U.s. Pharmaceutical Industry

Often medicines were made from herbs, spices and resins. The medicine was applied in drinks, pills, washes, baths, rubs, poultices, purges and ointments. Which sometimes themselves contained fatal ingredients.

The Industrial Revolution brought about great changes in how goods were produced and consumed, but it also brought about social and political changes. Some were positive, such as machines relieving much of the toil previously placed on worker’s muscles. But there were also negative changes.

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

In this day and age, there are millions of pharmaceuticals out there for all kinds of diseases and conditions, but where did all of this start? The creation of medicines most likely started when people discovered the healing properties plants contained. Today, mankind has the knowledge and technology to extract elements from plants to produce more chemically engineered medicines. The real question is how did medicines develop from mashing up leaves in order to lessen an infuriating rash to just popping a pill to nurse or illness? Medicines evolved by the scientific method: series of research and experiments. During the Elizabethan era, research and experimentation attained a renewed interest.

According to (Johnson et al, 2008:56) the pharmaceutical industry can be traced to the late nineteenth century. It develops, produces drugs for use as medications.

In this day and age, there are millions of pharmaceuticals out there for all kinds of diseases and conditions, but where did all of this start? The creation of medicines most likely started when people discovered the healing properties plants contained. Today, civilization has the knowledge and technology to extract elements from plants to produce more chemically engineered medicines. The real question is how did medicines develop from mashing up leaves in order to lessen an infuriating rash to just popping a pill to nurse or illness? Medicines evolved by the scientific method: series of research and experiments. During the Elizabethan era, research and experimentation attained a renewed interest.

Even though the pharmaceutical industry had been highly profitable and contributed about 40% OF Ciba-Geigy’s revenues in profit, there were some trends, which were worrying. The government had attempted to reduce a cost of healthcare thus; pressure to lower costs was mounting on industrialized countries. There were restrictions to introduce new products, and price control became stricter while limiting the freedom of doctors to prescribe medications. Patent controls were becoming reduced, and the pharmaceutical industry was becoming increasingly criticized. These trends later made the industry to

2. What is your assessment of the pharmaceutical industry at the time of the case? How is competition changing? What factors are driving

Medicine in its purest definition can generally be defined as the practice of diagnosing, preventing and the treatment of various ailments or diseases. Alternative medicines are those actions that may be undertaken for the same principles, but concentrate on techniques that are not generally considered part of what may be considered standard care. Remedy’s or treatments have been an integral part of both human and medical history since the dawn of time, and has evolved in various forms through the course of time. This fact was highlighted on a timeline of The History of Medicine, I will present two historical events that form the starting point of recorded medicine history:

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

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

Another important feature of the pharmaceutical industry was the fact in that in many countries it was

Lundbeck entered the pharmaceutical market in 1924 , imports from Europe and other countries, with headquarters in the pharmaceutical and cosmetic companies . By the late 1930s , Lundbeck has started producing its own pharmaceutical products, andset up their own R & D department . During the Second World War , production continued , although it is limited due to lack of raw materials, (Lundbeck, 2016) .

1. The evolution of academic infrastructure in the United States was faster than that in Japan. In the United Stated the first school of pharmacy was developed in Philadelphia in 1821.1 Medicine was used to treat the whole human body instead of particular organs, they relied on medicine that was specified as “cure it all’s.” which was mainly just opium or unlabeled by products. As education expanded in 1906 the pure food and drugs act was introduced in order to control food and drugs being manufactured.1 The goal was to restrict the selling of contaminated medicine, beverages, and prevent manufacturing companies from mislabeling and false advertising. However, this failed because it was not regulated properly and the development of the US

activities and tactics such as sampling and sales force promotion [3]. Whether a brand manager is using right promotional tools, whether 4P`s (now 7P`s are considered) are linked to each other and with product strategies for the two main objectives that includes [3]:  To Generate Prescription  Make the product reach the patient They can be said as Product chain and Prescription chain 1.1 The Product Chin This starts from selection of molecules and ends in the hands of patient. This chain is somehow intensive as it starts from the selection of molecules, then molecules are critically screened, after the screening of molecules the source of raw material is identified then the pilot batch manufacturing process starts at this stage pricing strategies and clinical trials are worked out. Once the pilot batch is manufactured then it starts with the commercialization of product, after commercialization product goes to distribution house and then it reaches the retailers. After patient’s diagnosis by doctor, patient purchases that product from retailer [4]. 1.2