Evolution, current status, and trend of pharmaceutical industry

• Main Authors: Hsih-Hsi Wang, 王世晞
• Other Authors: 張重昭
• Format: Others
• Language: en_US
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/29445633598008747536

碩士 === 國立臺灣大學 === 商學研究所 === 92 === The objective of the study is to investigate the following issues: 1). The special features of pharmaceutical industry, 2). The evolution of the pharmaceutical industry, with special emphasis of the impact of milestone events, 3). Current status of pharmaceutical industry in big pharmaceutical companies, products, therapy categories, marketing, sales, and research & development, 4). Analysis of the key success factors in pharmaceutical industry, 5). Forecast of the future trends in the pharmaceutical industry from the milestone events, current industry data, technological innovation, and the input of research & development. The pharmaceutical industry has following features, that made it different from other industries: 1). Longer development time, higher investment cost, higher risk, and higher return, 2). Strictly and highly regulated drug approval process before and after launch of new product, 3). Complex and interrelated value chain, 4). Research oriented, high intangible value. Major milestone events in evolution of pharmaceutical industry are: 1). Biological herb medicine period, 2). Chemical synthesis period, 3). Emergence of biotechnology, 4). Rise of collaboration and mergers & acquisitions, and intervention of capital market, 5). Post gene mapping era. The global market reach 400 billions US dollars in 2002. After millennium, the annual growth rate of the market in US and Europe was above 10 % and the market in Japan was steady. There were more than six thousand pipeline products in 2002. The US pharmaceutical market constitutes nearly half of the sales volume of global market. US had following advantages and overwhelm Europe in market and scale of the pharmaceutical companies in recent decades: 1). Government commit to health and biotechnology research, 2). New legislative acts facilitate the appropriation and commercialization of publicly funded research, 3). Intellectual rights protect the biotech products and new technology, 4). The strong venture capital and stock market provide the necessary capital and managerial expertise for startup biotechnology firm, 5). Diversified channels lead to competition in pricing and marketing. 6). Mergers & acquisitions reinforce the competitive advantage in research & development and markets. 7). Strict regulation of drug approval establish entrance barrier for competitor and strengthen the competitive advantage. The key success factors in development of pharmaceutical industry include: 1). Government policy about health industry and reimbursement system, 2). Intellectual right protection, 3). Establishment of drug approval system, 4). Drug pricing mechanism. Pharmaceutical industry will keep pace in the following ways: 1). Forecast of future needs according to demographic data, 2). Increased cost and decreased success rate of development of new drugs, 3). Persistent collaboration between biotechnology firm and big pharmaceutical company, 4). Mergers & acquisitions change the features of pharmaceutical industry, 5). Emphasis on the development of blockbuster drug, 6). Diversified marketing behavior.