Pharmaceutical Industry Analysis Nature of the industry: Highly defensive and 15% of U.S. population aged over 60→Highly mature. Main forces are the suppliers,

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Presentation transcript:

Pharmaceutical Industry Analysis Nature of the industry: Highly defensive and 15% of U.S. population aged over 60→Highly mature. Main forces are the suppliers, specialized labor in R&D, Intellectual property, patents & marketing investments. Competition: 140 U.S. pharmaceuticals companies engaged in basic and applied R&D. Main Competitors:

Pharmaceutical Industry Analysis Government Regulations: FDA provides industry standards. Minor influence on pricing of products. Economic Variables: Interest rates: R&D investment. Foreign exchange rate: export trade & acquisitions. Inflation: manufacturing costs.

Pharmaceutical Industry Analysis Financing requirements: Public funding: bonds and convertibles bonds, stocks. Private placement. Political power & lobbying ▼ Liquidity needed for mergers & acquisitions. Technological Progress: ▪ Innovation in pharma industry is decentralized→new technology acquired from smaller firms. ▪ Process of drug discovery & development requires advances in genomics, robotics and scientific applied technologies.

Pharmaceutical Industry Analysis Concerns about the environment : Labor: Pharma manufacturing plants require specific hygiene environment e.g. sterilized & avoid drug contamination. Nature: Pollution and gas waste during industrial process causing gas emissions & microbiological contamination. Pharma tests: Animal use and human testing in last phase of drug development.

Pharmaceutical Industry Analysis Industry trends: Worldwide prescription drugs sales forecasted to set at $707 bn in 2014 with 2.9% growth from Global need for vaccines: highest growth in major therapy categories for Pfizer expects to maintain top spot in 2014 due to Wyeth Acquisition.