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The purpose of this paper is to consider the efficiency of US healthcare in an international context. The paper emphasizes the concept of efficiency and explores implications for pharmaceutical marketing.

Literature review, economic theory, secondary data and bivariate regression were used to describe and evaluate US healthcare spending and pharmaceutical marketing.

US healthcare spending is inordinately high as a share of gross domestic product within developed countries and this is associated with a relatively high share of private finance. But public sector finance is displacing private payment and this trend is especially pronounced for pharmaceuticals. Public finance combined with fiscal pressure can be expected to curb use of pharmaceutical detailing and other forms of marketing. The limits of affordability are not well assessed and socio‐economic institutions to facilitate decisions about present and future costs have yet to evolve.

This paper provides a macro perspective for healthcare finance and the marketing of pharmaceuticals. It pioneers analysis of economics and international healthcare systems integrated with the foundations of demand for pharmaceutical marketing.

The Indian pharmaceutical industry accounts for 8% of global production and exports medicines to over 200 countries. Multinational enterprises (MNEs) enter the Indian market either directly through the establishment of subsidiaries or indirectly through licensing arrangements. However, evidence on MNE’s contribution toward development in India in terms of capability enhancement and linkages or through other spillover effects is limited. The purpose of this research was to generate evidence on (a) contribution of MNEs in the pharmaceutical market in India, (b) nature and impact of foreign direct investment (FDI) inflows in the Indian pharmaceutical sector, (c) contribution of MNEs in R&D and innovation in India, and (d) MNE’s contribution toward introducing new chemical entities (NCEs) and new biological entities (NBEs) in India through a mixed method research design. We conducted an in-depth quantitative analysis on multiple data sets and qualitative interviews of various stakeholders to generate a holistic understanding on the aforementioned research objectives. Our findings suggest that from the perspective of capability enhancement and linkages, the contribution of pharmaceutical MNEs in India is limited. We observed that majority of FDI investments are brownfield against desired greenfield investments. In addition, MNEs are investing far less of profit before tax (PBT) compared with Indian firms on research and development. However, MNEs are contributing significantly toward access to certain pharmaceutical segments like vaccines, hormones, and parenterals, which require sophisticated production facilities, advanced technology, and intellectual capital. Further, MNEs role in innovation and introduction of new medicines (new molecular entity [NME] and NBE New Chemical and Biological Entities (NCEs and NBEs)) in India is significant. We propose that creating a conducive policy environment and predictable regulatory environment can facilitate capability enhancement and linkages through MNEs. Some of the potential policy instruments include appropriate implementation of FDI policy and Intellectual Property Rights (IPR) policy to balance trade and public health.

Biotech companies stand as key actors in pharmaceutical innovation. The high risk and long timelines inherent with their R&D investments might hinder their access to funding, potentially stifling innovation. This study aims to explore into the appeal of biotech companies to capital market investors, whose financial backing could bolster the growth of the biotechnology sector.

This paper uses a dataset of 774 US publicly listed biotech firms to investigate their risk and return characteristics by comparing them to pharmaceutical firms and a sample of matched non-biotech R&D-intensive firms over the sample period 1980–2021. Tests show that the conclusions remain consistent across diverse methodological approaches.

The paper shows that biotech companies are riskier than the average firm in the market index but outperform on a risk-adjusted basis both the market and a matched group of R&D-intensive firms. This is particularly true for large capitalization biotech, which is also shown to provide a diversification benefit by reducing the downside risk in past crisis periods.

This paper provides insight relevant to the current debate about the overall performance of the biotech industry in terms of policy changes and their impact on small, early-stage biotech firms. While small and early-stage biotech firms are playing an increasing role in scientific innovation, this study confirms their greater vulnerability to financial risks and the importance of access to capital markets in enabling those companies to survive and evolve into larger biotech.

The purpose of this paper is to develop a scale for the measurement of service quality at the manufacturer–doctor interface of the pharmaceutical supply chain and to study the impact of service quality on doctor’s satisfaction and doctor’s prescribing behavior. Doctors from two major states of South India were selected for the study. A doctor perceived service quality scale with three dimensions having eight items was developed through confirmatory factor analysis (CFA) in the pharmaceutical context. Structural equation modeling (SEM) technique was used to show the relationship between service quality, satisfaction and prescribing behavior. The critical factors of service quality were identified, and a model was developed showing the relationship between service quality, doctor’s satisfaction and doctor’s prescribing behavior which has not been explored in any research. This model will be helpful in further development of new concepts and for analyzing the reasons for the failure of doctors in providing quality service. 

A total of 200 doctors from three major cities of South India were selected. A doctor perceived service quality scale with three dimensions having eight items was developed through CFA using Parasuraman Service quality scale (Parasuraman, 1985, 1986, 1988) as the basis in the pharmaceutical context after focus group discussions with company experts, retailers, doctors and academicians. SEM technique was used to examine the impact of service quality on doctor’s satisfaction and prescribing behavior.

There is no universal set of dimensions and items that determine service quality in manufacturing industries, especially at the manufacturer–doctor interface of the pharmaceutical supply chain though service quality plays a very important role in affecting the performance of manufacturing industries. The critical factors affecting the quality of service for a pharmaceutical company at the manufacturer–doctor interface of the supply chain were identified, and its impact on doctor’s satisfaction and their prescribing behavior were studied.

This research contributes to the development of service quality scale for measuring service quality in pharmaceutical manufacturing company, especially with reference to manufacturer–doctor interface of the supply chain which was not thoroughly explored earlier. A model was developed showing the positive relationship between service quality and doctor’s satisfaction and doctor’s prescribing behavior in pharmaceutical supply chain which is a new concept not proved experimentally.

The study is very useful for the pharmaceutical manufacturing companies to identify the service quality factors affecting doctor’s satisfaction and their prescribing behavior thereby leading to development of new measures for improving the performance of the pharmaceutical supply chain. This study can lead to identification of problems involved in pharmaceutical supply chain and also leads to generation of new ideas and development of new concepts for influencing doctor’s satisfaction and doctor’s prescribing behavior which in turn can help in providing better health.

This study actually has a direct impact on the society. If factors affecting doctor’s satisfaction and prescribing behavior are identified automatically, the end consumer, i.e. patient, can be satisfied in a better way, and better medical care can be provided. If doctor’s problems are identified, then better solutions can be provided to patients; this in turn has a lot of positive impact on the pharmaceutical company and society in general.

This research will act as a base for generating ideas relating to how quality service provided by a company will have an impact on doctor’s satisfaction and his prescribing behavior in pharmaceutical supply chain .To the best of the authors’ knowledge, this study is the first of its kind of the conceptual aspects of service quality, satisfaction and loyalty explained in terms of pharmaceutical supply chain as service quality, doctor’s satisfaction and doctor’s prescribing behavior and proved experimentally.

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.

The purpose of this paper is to provide an understanding of the intellectual capital (IC) reporting practices of the Bangladeshi pharmaceutical industry, one of the most significant industries to the Bangladeshi economy. It investigates the extent and qualitative characteristics of IC disclosures made by listed pharmaceutical companies in Bangladesh.

Data are gathered through a content analysis of the 2006 annual reports of 16 pharmaceutical companies quoted on the Dhaka Stock Exchange. The content analysis is performed by IC topic (i.e. categories and subcategories) and three semantic properties of IC disclosure: first, format (i.e. discursive, numerical but non-monetary, numerical-monetary and visual); second, news-tenor (i.e. positive, neutral and negative); and three, time-orientation (i.e. forward-looking, non-time-specific and past-oriented).

Results suggest a clear awareness among the Bangladeshi pharmaceutical companies of the significance of IC in corporate value creation and a commitment to publicly communicating IC. Some evidence is found of the need to manage stakeholder relationships, and legitimacy and impression management motives underpinning the management's desire to disclose IC. Also, proprietary cost theory explains the variation in the disclosure of types of IC. The Bangladeshi pharmaceutical companies did not adopt a consistent framework for IC reporting. A lack of consistency in reporting IC was also evident as the extent and subcategories of IC disclosures varied among companies. The findings indicate the Bangladeshi pharmaceutical companies may not have properly measured and managed their IC.

There are two main limitations specific to this study. First, it only provides a snapshot of IC disclosure practices of Bangladeshi pharmaceutical companies in 2006. Changes may have taken place since then that would have affected the IC-intensity and IC utilisation of these entities. Second, the study's sample is limited due to its focus on one industry. However, it is representative of the population as it includes more than two-thirds of Bangladeshi pharmaceutical companies. This limitation affects the ability to conduct statistically meaningful analyses for testing any hypotheses relating to IC disclosure.

This is the first study on IC reporting practices of Bangladeshi pharmaceutical companies. Unlike most prior studies on IC disclosure practices, this study measures the quality of disclosures by analysing their semantic properties. The paper highlights the need for building organisational competencies in managing, measuring and reporting IC in Bangladesh.

Outsourcing is recognized as one of the critical factors for efficient execution of pharmaceutical supply chain management (PSCM), and many pharmaceutical companies engage in international outsourcing of services (IOS) to survive in global highly competitive business. Since the key success factors for both domestic & international alliances are partnership characteristics and strategic fit management, but there is no empirical research on this issue in Thai pharmaceutical partnership offshore outsourcing. Therefore, this survey of Thai and foreign companies, both contract providers (CPs) and contract manufacturers (CMs), seeks to indicate significant relationships among both outsourcing strategic fit and partnership types, including outsourcing performance outcome. This research is two-fold. First, the partnership types (Type I, II, & III), the strategic fit types (low fit, moderate fit, and good fit), and their correlations are analyzed. And second, their outsourcing performance (company revenues and growth rates) are presented. The results showed that the most of the Thai pharmaceutical outsourcing manufacturing are classified as the partnership Type II, as well as the moderate strategic fit, and strongly support the relationship between the two models. Both of the companies’ revenue and growth rate could predict the companies’ performances outcome for each of partnership and strategic fit types. However, it is not necessary that the most integrative type of partnership, Type III, will be always the best, because it depends also on the strategic fit between each pair of partners as well.

The purpose of the present study is to make a comparison of intellectual capital performance between Indian pharmaceutical and textile industry. Further, the study attempts to investigate association between intellectual capital efficiency with financial performance and market valuation.

An empirical study was carried out on data collected from CMIE database Prowess. VAIC was calculated on a select sample of 105, pharmaceutical companies and 102, textile companies. Correlation and OLS regressions models are used on panel data for the analysis.

Results indicated that profitability and intellectual capital are positively associated but no significant relationship is observed between intellectual capital with productivity and market valuation in both industries. In spite of the growing importance of intellectual capital, its reflection is not proportionally observed in the financial performance of the select sample of companies.

A more detailed study may be carried out taking the major knowledge‐intensive industries with cross‐section analysis to have better assessments of the results.

The present study extends the knowledge of academician and managers about intellectual capital performance and its impact on financial and market performance of the companies. They may enhance the profitability and productivity of the companies by proper utilization of intellectual capital.

Present study extends the knowledge of intellectual capital performance and its utilization for increasing the financial and market performance of the companies.

The COVID-19 pandemic creates inefficiencies in the health-care system by having devastating consequences. It has demonstrated how inefficiencies in the health system can have a significant impact on social cohesion, economic growth and public confidence in government. The main purpose of this study is to explore the contemporary challenges faced by the pharmaceutical industry in Europe.

This study used a systematic literature review method and adopted inclusion and exclusion criteria after constructive reviews of articles from Web of Science and Scopus databases along with the ranked journals in the Chartered Association of Business Schools to search the following key terms “challenges in the European pharmaceutical industry” during the period from 2011 to 2022. The terms are set to be searched in the publications’ titles, abstracts and keywords.

This study reviewed 57 papers, and the systematic review revealed the vulnerability of the European pharmaceutical industry, such as the default patent system, ineffective research and development, debate on the role of alliances, low level of expertise in the European health-care system, pharmaceutical supply chain management and other issues.

This study suggests that future research may explore the challenges of multisectoral and cross-country perspectives to get a better understanding, and for the long-term sustainability of public pharmaceutical spending, new models of enhancing research investments are needed, and Europe can still play a leading role in its tradition structure within capturing innovative ideas.

It provides new useful insights to policymakers, global leaders and managers to devise policies to achieve a performance-oriented culture in their institutions and firms.

The pharmaceutical sector has recognized the influence of social determinants of health. It moves toward sustained sound health of people to have a flourishing pharmaceutical sector.

There is an insufficient study on the contemporary challenges of the European pharmaceutical industry. This study presents the argument that earlier studies ignored the contemporary issues facing the European pharmaceutical industry from a comprehensive and wider angle. In addition, the COVID-19 pandemic is a recent occurrence, and it causes inefficiency in the health-care sector, where the pharmaceutical industry plays a crucial role; importantly, this topic is emerging and underresearched in the existing literature. There is also a lack of systematic literature review studies in this field.

The purpose of this paper is to assess the quality practices of European pharmaceutical manufacturers to determine the level of readiness of this industrial sector to implement and/or sustain lean manufacturing (LM).

An assessment framework developed by Al-Najem et al. (2013) was adapted to evaluate how ready European pharmaceutical manufacturers are to implement and/or sustain LM. Therefore, the lean readiness (LR) level of these organisations was assessed through six quality practices related to LM. These included: processes, planning and control, human resources, top management and leadership, customer relations, and supplier relations. One research question and three hypotheses were formulated and tested using a combination of descriptive statistics and non-parametric Mann-Whitney tests. Data were collected through a survey questionnaire distributed to 310 European pharmaceutical manufacturers and responded by 37 of these organisations.

Overall, the results of this study indicate an inadequate level of LR for the participating firms. Simultaneously, it was concluded that factors such as company size, type of relationships with suppliers and ISO 9000 certification do not have an effect on the quality practices, and hence LR level, of European pharmaceutical manufacturing organisations.

This study provides crucial information regarding the LR level of European pharmaceutical manufacturers, which can now be aware of the areas in their practices that require further improvement towards a successful lean journey. Simultaneously, organisations in the pharmaceutical sector that intend to implement LM can consider the results of this study and evaluate their readiness level. Managers can, therefore, refer to this research and use it as a platform to take better decisions regarding what quality aspects of their operations need to be enhanced to successfully deploy or sustain a lean strategy.

This research is one of the very few studies that have focussed on evaluating whether the European pharmaceutical manufacturing industry is ready to successfully implement or sustain LM. Therefore, this research expands the limited existent body of knowledge of LM in this industry.