Overview of pharma industry Know associate industry in pharma Environmental forces Stakeholders
In the industry we have 2 groups 1. Typical pharmaceutical multinational giants responsible for introducing many innovative products and employing many employees reaching 100,000 and with branches some time reaching hundreds 2. Biotechnology companies that harnesses recombinant DNA technology and develop drugs some came a billion dollar size without promoting or selling their products instead they allied with typical companies which in turn market the products
Not all biotechnology companies have fully integrated with the market and achieved profits Because of the extreme competition most company now have chosen to focus their resources on specific areas where their long lasting history of innovation and success allow them to be relatively protected from competition such companies are called “niche”
Contract research organizations (CRO) Clinical site management companies (CSM) Contract sales organizations (CSO)
Change forced by managed care and global government cost containment plus customer and industry factors has affected the dynamics of the industries In the past 30 years the industry has passed through an innovative phase(1980)then a price increase phase (late 1980) a cost reduction and consolidation phase(early 1990)and a recent comeback of innovation(late 1990) The recent trend with the most impact on the industry is the globalization and consolidation
Globalization to be effective some requirements have to be met: a) Local expertise b) Sale capabilities c) Customer service network d) Supply base
Reasons for consolidation a) Economics of scale (The increase in efficiency of production as the number of goods being produced increases) b) Financial position c) Filling of technical gap d) Sharing distribution networks e) Therapeutic area synergy f) Critical mass (When a company reaches critical mass, it is thought that they can remain viable without having to add any more investment)
A stakeholder is an person or group of persons with which the company has or wants to develop a relationship In the industry there are internal and external stakeholder internal includes every employee where ever he works and thus his education,training are cared for by the company
External stakeholders includes suppliers, regulators and politicians because they all play a role in the company success Mediators includes prescribers,university professors,and health care professionals who stand between the company and its final customers Consumers includes patients,their families, or any support or advocacy group,media, general public and the competitors
Factors contributing to noncompliance 1. Treatment complexity 2. Disease perception 3. Family opinions 4. Elderly patients 5. Patient info quality 6. Poor communication with health care professionals