U.S. Political Institutions in Decay | Foreign AffairsU.S. Pharmaceutical industry Essay - 6104 Words
U.S. Pharmaceutical industry
U.S. Pharmaceutical industry
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The United States
Pharmaceutical industry
An overall insight in the internal affairs of the U.S pharmaceutical manufacturing industry -
a focus towards future expectations and R&D
‘’PROJECT 0’’
GROUP 4 (MINT)
‘’PROJECT 0’’ – The United States pharmaceutical industry1 1.INTRODUCTION3
1.1 Abstract3
1.2 Introduction3
1.3 Problem formulation:3
2. COUNTRY DESCRIPTION4
2.1 POLITICAL4
2. 2 ECONOMICAL4
2.3 SOCIAL5
2.4 TECHNOLOGICAL5
3. INDUSTRY DESCRIPTION: [FIVE FORCES] 5
3.1 Bargaining Power of the Suppliers – Strong5
3.2 Bargaining Power of the Customers – moderate to weak6 3.3 Threat of New Entrants – weak to moderate7
3.4 Threat of Substitute Products – Weak7
3.5 Competitive Rivalry within the Industry - moderate8
4. RELEVANT INFORMATION: BASIS FOR INDUSTRY DESCRIPTION9
4.1 R&D (Research and development)9
4.1.1 Collaborative ‘’ecosystem’’9
4.2 Key subdivisions:
a summarized
Overview:10
4.3 Key figures of 2013:11
4.5 Company summary: ‘’Johnson & Johnson’’12
5. CONCLUSION12
6. SOURCE CRITISCIM13
REFERENCES:13
7. METHODOLOGY13
1. INTRODUCTION
1.1 Abstract
In this study we will cover the present situation of the United States pharmaceutical industry in general terms, using the recent year statistics as our guidelines to gather an overall perspective. Additionally, we will discuss the most likely movement and challenges of this industry within the near future. Examining the present situation of the industry, we will create realistic predictions about the challenges the industry is likely to face, based on the multitude of statistics and information collected from the credible sources. The document utilizes ‘’PEST’’ analysis to for U.S country description, as well as ‘’Porters module of five forces’’ to evaluate Pharmaceutical industry, which is adjusted to give a more focused insight on the R&D, Supply and Demand aspects of the sector. In the recent years there has been a proposition to whether or not the pharmaceutical industries are almost completely defined by the ''Research and development'' area. Involving the U.S market, and from the gathered compilations of information we would argue that while perhaps the ''R&D'' does not completely define the industry, it is certainly an important pillar of it, that influences, and reveals a lot of relevant information about the internal challenges. The conducted study does support this point - Due to Research and development large capital requirements, and the essentially similar process amongst all industry participants, this in combination with strict clinical testing evaluation by governmental agencies serves as a perpetual drive for supplier power to remain strong, equally diminishing the buyer power. The U.S pharmaceutical industry is the main drive behind innovative initiative, producing the most new drugs and chemicals per year than the combined European industry. The Domestic market expenditure on R&D going up as high as 51 billion US dollars. From the period of 2007 - 2011, US has retained 62% of global sales of new medicines launched. This gap is due to the U.S companies prioritizing over the R&D area, investing as much as 16% of total revenues, in order to gain larger future potential return. 1.2 Introduction
The U.S. plays a key role in the world pharmaceutical industry. Eight out of fifteen leaders of this market are headquartered in the United States. U.S firms are at the top of the global pharmaceutical markets and are expected to hit almost 345 billion dollars by the end of 2014. The 10 largest drugs companies control over one-third of this market, several with sales of more than US$10 billion a year and profit margins of about 30%, six of whom are based in the United States. The industry has heavy regulations and guidelines that are imposed by the United States government. Due to a need of large capital, and fierce competition...
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