Pharm 315

• Pharmaceutical industry


  Develops, produces, and markets drugs licensed for use as medications. Can deal in generic and/or brand medications. Subject to laws and regulations regarding patenting, testing and marketing of drugs.
• Brief history of the pharmaceutical industry

  • 754 - first known drugstore opened by Arabian pharmacists in Baghdad
  • 1920s to 1930s - discovery of insulin and penicillin
  • 1950s to 1960s - first oral contraceptive, cortisone, blood-pressure drugs, hear medications, MAO inhibitors, chlorpromazine, Haldol, tranquilizers, and valium
  • 1960s - thalidomide tragedy
  • 1964 - Declaration of Helsinki, set standards for clinical research and demanded informed consent
  • GMP came into existence as a result of the thalidomide tragedy
  • 1980s - pharmaceutical industry pressured by economics and new regulations
  • 1990s - mergers, takeovers, increased use of contract research organizations
  • 1990s - marketing changed dramatically, partly because of new consumerism
  • The internet transformed the nature of business
  • Drug development progressed from hit-and-miss to rational drug discovery
  • Demand for nutritional supplements and alternative medicines created new opportunities and increased competition
• Industry revenues


  2006 - global spending in prescription drugs topped $643 billion. The United States accounts for almost half of the global pharmaceutical market, followed by the EU and Japan. Emerging markets such as China, India, Brazil, Russia, SK, and Mexico outpaced that market, growing 81 percent. The pharmaceutical industry is the most profitable of all businesses in the US.
• Market leaders in terms of revenues

  • Johnson&Johnson
  • Roche
  • Pfizer
  • Abbvie
  • Merck
  • Sanofi
  • Novartis
  • Bistrol Myers Squibb(BMS)
  • AstraZeneca
  • Abbott
  • GSK
  • Takeda
  • Eli Lilly
  • Novo Nordisk
  • AmGen
• Top selling pharmaceutical brands and their companies 2023

  • Keytruda (Merck)
  • Humira (Abbvie)
  • Ozempic (Novo Nordisk)
  • Eliquis (Pfizer/BMS)
  • Biktarvy (Gilead)
  • Dupxient (Sanofi/Regeneron)
  • Stelara (Janssen)
  • Darzalex (Janssen)
  • Gardasil (Merck)
  • Opdivo (BMS)
• Top corporations in the Philippine Pharmaceutical market
• Leading causes of mortality and morbidity
• Top 10 causes of death in the Philippines
• Leading cause of death globally
• Market drivers


  Underlying forces that compel consumers to purchase products and pay for services, such as customer preferences, technology trends, economic conditions, regulatory changes, social movements, and competitive actions.
• Seven major trends reshaping the pharmaceutical marketplace

  • The burden of chronic disease is soaring
  • Healthcare policy-makers and payers are increasingly mandating or influencing what doctors can prescribe
  • Pay for performance is on the rise
  • The boundaries between different forms of healthcare are blurring
  • The markets of the developing world, where demand is likely to grow most rapidly over the next 13 years, are highly varied
  • Many governments are beginning to focus on prevention rather than treatment, although they are not yet investing very much in pre-emptive measures
  • The regulators are becoming more risk-averse
• Much of the increase in spending has gone in the expansion of sales force, but many of the industry's biggest markets are now saturated with sales representatives, and its selling techniques are becoming increasingly ineffective
• The pharmaceutical industry is changing dramatically, with huge implications for the industry
• This change of emphasis will enable Pharma to enter the realm of health management
• Healthcare professionals and patients will not trust the industry to provide such services unless they are sure it has their best interest at heart
• The leading national and multinational agencies have become much more cautious about approving truly innovative medicines in the wake of problems with medicines like Vioxx
• Rofecoxib (Vioxx) COX2 selective nsaid, withdrawed in the market on September 2004 due to increased risk of heart attacks and strokes
• Much of this increase in spending has gone in the expansion of sales force
• Many of the industry's biggest markets are now saturated with sales representatives, and its selling techniques are becoming increasingly ineffective
• The pharmaceutical market is getting very crowded
• In a recent poll of British general practitioners, respondents reported receiving an average of four visits a month and five promotional mailings a week
• One Malaysian doctor participating in a study of promotional practices in emerging countries was approached by 16 multinationals and nine local generics companies within a five-week time span
• Some 20% of US and British doctors now refuse to see any sales representatives
• The regulations governing the behavior of sales representatives are also getting tougher
• Various US states have passed laws requiring pharmaceutical companies to report all gifts or payments to healthcare professionals exceeding $25
• Australia has banned pharmaceutical companies from providing doctors with personal gifts, entertainment or lavish hospitality
• Resistance to "irresponsible" marketing practices is growing, and, in May 2007, the member governments of the World Health Organization passed a resolution to enact or enforce legislation banning the "inaccurate, misleading or unethical promotion of medicines
• Marketing


  A human activity directed at satisfying needs and wants through an exchange process
• Needs


  A state of felt deprivation of some basic satisfaction
• Wants


  Desires for specific satisfiers of these needs
• Demands


  Wants for specific products that are backed up by an ability and willingness to buy them
• Products


  Anything that can be offered to someone to satisfy a need or want
• Value


  The consumer's estimate of the product's capacity to satisfy their requirements
• Exchange


  The act of obtaining a desired product from someone by offering something in return
• Transaction


  Involves at least two things of value, conditions, that are agreed to, a time of agreement and a place of agreement
• Market


  Consists of all the existing and potential consumers sharing a particular need or want who might be willing and able to engage in exchange to satisfy that need or want
• Scope of marketing


  • Goods
  • Services
  • Experiences
  • Events
  • Persons
  • Places
  • Properties
  • Organizations
  • Information
  • Ideas

  
• As one of the countries with the highest out-of-pocket health expenditures in the Asia-Pacific region, there had been a growing demand for affordable yet effective medicines in the Philippines
• In 2021, spending on pharmacies accounted for about 26% of the country's current health expenditure, while nearly half were spent on hospitals
• Through the Universal Health Coverage scheme, the government aims to impose a lower price cap on drugs and medicines to make it even more accessible to Filipino consumers and to increase local production