Pharmaceutical Industry in Transition

Pharmaceutical Industry in Transition

Pharmaceutical Industry in Transition

The transition process in the US healthcare is complicated. The medical resolution is an important factor that contributes to the patient safety as patient transits between the healthcare settings and extends of care.

The healthcare can be improved through the vast new pharmaceutical drugs development in USA. More than 75% of the revenue is generated through pharmaceutical medications. The FDA has also decreased the new drug model from 1996 to now in 2011. Therefore the presence of drugs with their brand name is less common now in USA. It has decreased potentially with the passage of time and the concept of drug with generic has been improved. The incentives are provided under the law and governmental level funding and other facilities. Adequate supply of funds and share in economic distribution from the government are important to for the private corporations whose research and development (R & D) department brings variety of new drugs to the market.

The concept of generic pharmaceutical manufacture direct approach to physicians to provide information regarding the pricing and the therapeutic efficacy of the product is a disturbance to government economic and financial settlements. The IPR (Intellectual Property Rights) have been established to assure the small capital industries will continue to develop drugs with the generic market. The system should be based on governmental fiat to adjust prices instead of market competition.

The generic drugs composed of more than half of the US market, so the branded pharmaceutical cannot describe the scenario completely for elevated prices (Kyle, M. K. (2007).

The biggest opportunity for the pharmaceutical companies is to expand their business through distribution of medications in the developing countries. In Africa the need of affordable medicines, vaccines and medical services are required. This has created a great opportunity for the US pharmaceutical companies to invest in this sector. Various small venture capital companies are the primary developers of new drugs. This is because of the introduction to generic drugs in the market. This is replacing the patent drugs, which has increased the revenue of the pharmaceutical industries and allow investment in research of new molecular compound studies.

In the developing countries of Africa, the investment through the generic drugs has generated incredible saving for the healthcare industries. The generic drugs have cheaper manufacturing cost. The high generic prescription orders in the developing countries due to high prevalence of disease and infections will result in the billion dollars revenue to USA. The generic drugs are therapeutically equivalent to the branded drugs as they have the same active ingredient as the branded drug contain in it (ASPE STAFF, 2010).

The US pharmaceutical multinational corporations (MNC) are the leaders in the domestic market as well as international market, especially in the developing countries. The sale to the foreign countries accounts for 40-50% of the total annual sale of the USA. This sale is mostly for the other industrialized countries and also covers the developing countries.

It is estimated that out of 75% of ...