The Global Pharmaceutical Market Forecast Essays -- International Phar

MARKET OVERVIEW The global pharmaceutical market is a multibillion-dollar industry. The 10 largest drug companies control over one-third of the market, several(prenominal) with sales of more than $10B a year and profit margins of 30%. Six of these companies are based in the U.S. and four are in Europe. It is predicted that North and in the s come to the foreh America, Europe, and Japan will continue to dominate by accounting for 85% of the worlds pharmaceutical market. Companies currently spend one-third of all sales revenue on marketing, which is roughly twice of what they spent on R&D (Pharmaceutical Industry). The cost of innovation proves to be very luxuriously as the drug business is very risky 1 out of 10,000 discovered compounds are approved for sale. Since 2001, the Center for Drug Evaluation and Research averaged 22.9 approvals per year. just now 3 out of 20 approved drugs bring in adequate revenue to cover the R&D costs and only 1 out of 3 approved drug generate enough revenue to cover previous failures. According to a study by Bain & Company, the cost of discovering, developing, and launching a new drug rose to approximately $1.7 billion in 2003, taking into account opportunity costs, marketing, and other business expenses (Pharma Markets). SUPPLY The major means affecting supply is the advancement of technology. The development of simulation and data analysis tools condenses the drugs process time from development to full-scale production. Process imagery and high frequency camera systems help hasten products from clinical trial stage to commercial availability. Integrated sensors are being used to monitor the achievement and quality parameters of drug manufacturing processes on a real-time basis in order to ensure the quality of the medicine ... ...http//www.who.int/trade/glossary/story073/en/index.html. Prest, Richard. echt Demand Forecasting. Pharmaceutical Industry. PharmaManufacturing.com, n.d. Web. 14 Mar. 2013. . Schacht, Wendy H., a nd John R. Thomas. Patent Law and Its Application to the Pharmaceutical Industry. Rep. no. RL30756. The Library of Congress, 10 Jan. 2005. Web. 14 Mar. 2013. . Silverman, Ed. Global Drug using up Is Forecast To Rebound. Pharmalot. PharmaLive.com, 12 July 2012. Web. 15 Mar. 2013. . Vogel, Ronald J. The Demand for Pharmaceuticals. Pharmaceutical Economics and Public Policy. New York Pharmaceutical Products, 2007. 90-108. Print.