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When one considers excellence in the pharmaceutical industry one might focus attention on the primary manufactured product, drugs. Emphasis would be placed on how the drugs are developed, tested for safety, and manufactured. Other factors could include marketing and distribution of these pharmaceuticals. These practices although extremely important, represent a very traditional view of drug companies. In other words drug companies primary business is to develop, manufacture, and distribute drugs. Starting in the mid 1980s most drug companies viewed themselves this way. When the medical inflation rate soared to over 15% year after year, most drug companies arbitrarily raised the price of their drugs at this extremely high rate. At the time, despite pleas from consumer groups, the pharmaceutical industry justified these increases by pointing to the high cost of research and product liability. The recession of the early 1990's has had profound effect on health care costs. As businesses look for ways to cut costs in general, they no longer will tolerate constantly rising health care insurance premiums. The election of Bill Clinton in 1992 further accelerated cost cutting trends in health care. This effect stemmed from the threat of nationalised or other radical health care reform. President Clinton in fact, singled out the drug companies for price gouging. Since this time, medical costs, including drugs has declined to approximately 5%. Cost containment efforts such as HMOs and managed care have continued.

The study focuses on drug safety regulation capture, reveals the inner mechanism and evolutionary characteristics of drug safety regulation capture and provides suggestions for effective regulation by pharmacovigilance.

The article introduces prospect theory into the game strategy analysis of drug safety events, constructs a benefit perception matrix based on psychological perception and analyzes the risk selection strategies and constraints on stable outcomes for both drug companies and drug regulatory authorities. Moreover, simulation was used to analyze the choice of results of different parameters on the game strategy.

The results found that the system does not have a stable equilibrium strategy under the role of cognitive psychology. The risk transfer coefficient, penalty cost, risk loss, regulatory benefit, regulatory success probability and risk discount coefficient directly acted in the direction of system evolution toward the system stable strategy. There is a critical effect on the behavioral strategies of drug manufacturers and drug supervisors, which exceeds a certain intensity before the behavioral strategies in repeated games tend to stabilize.

In this article, the authors constructed the perceived benefit matrix through the prospect value function to analyze the behavioral evolution game strategies of drug companies and FDA in the regulatory process, and to evaluate the evolution law of each factor.

Price becomes a main instrument for rationing pharmaceutical drugs in Central America as a consequence of pro‐market reforms implemented in the 1980s. Under market‐rationing conditions, people's access to branded drugs does depend on their purchasing power and on the vector of prices they face. The purpose of this paper is to study the regional pricing strategy followed by pharmaceutical firms across Central American countries. These countries differ in such economic factors as per capita income, income distribution, market size, and nature and extent of their social‐security system; thus, there are conditions that foster the implementation of price‐discrimination practices across the region.

The investigation takes advantage of a large database with information about prices of identical drugs sold across Central American countries and produced by 17 large pharmaceutical companies. Regression analyses are used to study whether price discrimination exists in Central American drug markets and what pricing strategies are followed by different pharmaceutical companies.

Results show that there are significant differences in the prices of identical drugs across the Central American countries, as well as that pharmaceutical companies follow different pricing strategies.

Cross‐country price comparisons are usually based on constructed price indices, which imply losing detailed information about the products being compared. This investigation uses prices of identical drugs, rather than constructed price indices, to study cross‐country price differences by pharmaceutical companies across the Central American region. The study of price discrimination is crucial to understanding how markets end up rationing such an essential product as pharmaceutical drugs.

The purpose of this paper is to benchmark current adoption of green chemistry (GC) practices by the innovative and generic pharmaceutical companies and examine the drivers, barriers and future opportunities.

The authors examined publicly available data for the top 10 “big pharma” and top ten generic drug manufacturers. Using the IQ Green Chemistry working group framework for effective GC programs, they scored each of the 20 companies in seven key areas.

The study finds that generic drug companies have not embraced GC at the level of the innovative pharmaceutical companies (average GC score of 2 vs 11 for “big pharma”). Top two barriers for them include: lack of pressure and incentives, and the burdensome regulatory process for making changes in the manufacturing process.

The research is based on publicly disclosed information. It is possible that some generic drug manufacturers have begun to work internally on GC but have not disclosed externally yet. Future research should include a survey or interviews of generic drug manufacturers.

The company-level analysis, benchmarking framework and results are of value for researchers and practitioners interested in advancing greater adoption of GC by the pharmaceutical industry.

This study provides the first company-level benchmarking of GC adoption by the largest innovative and generics drug manufacturers. It contributes to the literature on the barriers and drivers for greater adoption of GC.

This paper aims to analyze the present trends in pharmaceutical innovation and the impact of generic competition.

A secondary research was conducted to collect data related to new drug approvals of various classes over previous years; trends of investment in research and development; and the pipeline of new drug products of pharmaceutical companies.

While the new molecular entity (NME) approval rate has not improved over previous years, innovators have been aggressively pursuing the radical innovation process. Further, there has been a significant increase in incremental innovation. Pharmaceutical companies' investment in research has gone up resulting in higher number of application for new drug approvals. In India, pharmaceutical companies have significantly increased their research investment. However, the NME pipeline is still slim though there has been a significant surge in generic filings.

It provides a concise understanding of trends in pharmaceutical innovation and analyzes how various factors are shaping up the innovation process. It also throws light on the evolution story of Indian pharmaceutical companies to become drug innovators.

This study aims to investigate pharmaceutical company-sponsored disease information websites that are created and operated by pharmaceutical companies. Without clear indication of the site ownership, these websites look like non-advertising health information websites. Consumers’ responses to pharmaceutical company-sponsored disease information websites were examined in comparison to their responses to typical direct-to-consumer (DTC) drug brand websites.

A field experiment was conducted with a representative sample of US adults. Study subjects were randomly assigned to one of three live websites: pharmaceutical company-sponsored disease information website; DTC brand website with a high level of trust cues; and DTC brand website with a low level of trust cues. After viewing the assigned websites, participants completed an online questionnaire. The questionnaire included measurements for perceived website trust, attitude toward the website, intention to use information, perceived importance of prescription drug information, perceived health, prescription drug use, disposition to trust, prior experience with the website and demographic information.

The pharmaceutical company-sponsored disease information website generated higher website trust and more positive attitude and information use intention than the DTC drug brand websites. The results suggest that company-sponsored disease information websites may present some ethical issues related to website identity information transparency, which seems to inhibit consumers’ persuasion knowledge activation and proper coping responses. Because such websites look like non-advertising health information websites, consumers tend to evaluate them more positively and place higher trust in them than typical DTC drug brand websites with clear advertiser identification.

This is the first study examining pharmaceutical company-sponsored disease information websites, a relatively new form of covert DTC online advertising with potential ethical concerns due to the site identity transparency issues. This study’s findings suggest that consumers are likely to be more trusting and receptive of information presented in websites taking the form of a non-advertising health information website than in DTC brand websites.

Researchers continue to seek understanding of industrialization as a state managed process. How to create and implement new industries based on advanced knowledge is on the policy agenda of many advanced nations. Measures that promote these developments include national capacity building in science and technology, the formation of technology transfer systems, and the establishment of industrial clusters. What these templates often overlook is an analysis of use. This chapter aims to increase the understanding of the processes that embed new solutions in structures from an industrial network perspective. The chapter describes an empirical study of high-technology industrialization in Taiwan that the researcher conducts to this end. The study shows that the Taiwanese industrial model is oversimplified and omits several important factors in the development of new industries. This study bases its findings on the notions that resource combination occurs in different time and space, the new always builds on existing resource structures, and the users are important as active participants in development processes.

Purpose – The cost of new drug development is increasing every year. Pharmaceutical companies use R&D joint ventures, mergers, and outsource different stages of pharmaceutical R&D activities for a faster and cost minimizing method of innovation. Pharmaceutical companies outsource R&D activities to independent small biotech or pharmaceutical companies that specialize in different stages of pharmaceutical R&D. This chapter examines the determinants of the payment structure of research contracts between large bio/pharmaceutical companies and specialized research firms.

Methods – Determinants of R&D contracts are analyzed using detailed R&D contract data between bio/pharmaceutical companies and independent research firms for 10 years. A multinomial logit model is used in order to understand the determinants of three different types of contracts; royalty contracts, fixed payment contracts, and the mixed contracts.

Findings – Under uncertainty, the likelihood of a royalty contract rises for the early stages of the research and with the patent stock of the research firm. It is more likely to observe both royalty and fixed payment if the pharmaceutical client has past contracts with the same research firm. The results also suggest that if Food and Drug Administration (FDA) is more stringent in any disease area in reviewing the new drug application, then the likelihood of signing pure royalty contract decreases.

Implications – Understanding the nature of R&D contracts and the effects of FDA's behavior on the pharmaceutical R&D contract is important because these contracts not only affect the cost of new drug invention but also the quality and the rate of invention.

Value – Results are useful for both the pharmaceutical companies and the economic/business researchers.

This paper seeks to empirically identify the major factors that influence physician loyalty behavior in prescribing certain brands of drugs.

Testable hypotheses were developed with respect to physician loyalty behavior regarding drug prescription practices, and a survey questionnaire was designed to capture the data from 71 physicians, as a convenience sample. The hypotheses were tested by PLS path modeling.

The major finding is that tangible rewards to physicians by the pharmaceutical companies lead to prescription loyalty. The second major finding is that the professional values of pharmaceutical sales representatives (PSR) impact significantly on physician prescription loyalty. The hypotheses related to the impact of PSR personality, drug quality, corporate reputation and professional influence on prescription loyalty were not supported in the study.

The results should prove useful to pharmaceutical companies in developing physician loyalty to particular brands as well as enhancing the understanding of drug control authorities and governmental health policy makers, in controlling unethical medical practices by physicians.

This paper reports an original empirical study on physician loyalty behavior in the context of drug prescription.

This paper aims to review the progression of the pharmaceutical industry through the lens of government legislation in the USA. The goal of this paper is to provide a comprehensive review of pharmaceutical marketing practices while providing direction for emerging pricing and promotional approaches.

This paper offers a comprehensive review of pharmaceutical marketing practices through an exhaustive review of the literature. Further, suggestions are made based on emerging marketing techniques found in the literature.

Changes in government legislation will continue to play a significant role in promotional activities of the pharmaceutical industry. This study identifies specific pricing and promotional tools the pharmaceutical industry can use in response to these emerging changes. Specific actions such as enhancing public image, reconfiguring sales forces, outsourcing and optimizing the pricing mix are suggested.

This paper presents clear guidelines for managers by affording applicable practical tools to offset changes posed by government legislation.

This paper seeks to fill a gap in research surrounding pricing and promotion in the pharmaceutical industry. Further, this paper offers concrete pricing and promotional approaches for pharmaceutical management.