Pharmaceutical companies profitability

Pricing based on the average cost, thus enabling pharmaceutical companies to recover their R D expenses with the corresponding profitability. 

Websites http //www.tldiabetes.nih.gov/TlD-RAID http //www2.niddk.nih.gov/Research/Resources/ AllServices.htm Eligibility Academic institutions, non-profit research institutions, biotechnology and pharmaceutical companies, U.S. and non-U.S. entities Intellectual Property It is anticipated that submissions will involve a potential therapeutic that either already has protected IP or will be in the public domain. Specific information can be obtained by contacting T1D-RAID Program officials. 

These stipulations would provide to society a tool for imposing on pharmaceutical companies to support an important part of these expenses for production of less profitable orphan drugs, especially those for NBC medical protection of the population. 

As for-profit enterprises, pharmaceutical companies must consider whether they will be able to recoup their substantial investments in drug discovery. Thus it is reasonable to assume that pharmaceutical companies would consider not only the number of individuals for whom a particular drug would be efficacious but also whether the individuals would be able to purchase the medication, either personally or through their insurer or other third-party payer. Pharmacogenomics adds another dimension. Once... 

The Pharmaceutical companies want to maximise there profit on drugs. To do this there might be price differences between markets and countries. In this case another pharmaceutical company can buy the drug in one country and sell it in another. Despite the costs for re-labelling and repacking there might be a profit for the parallel importing company. An example is shown in Table 8.1. 

Pharmaceutical companies have to be continuously vigilant and forecast the future directions of drug development and regulatory requirements. They have to use their core technical competencies to deliver a pipeline of products to remain competitive and profitable in the long term. 

In product-driven therapeutic research, the pharmaceutical company must satisfy the regulatory and government agencies as well as the prescribers that the new product is effective, safe and meets the qualities required of GMP. The institutions that will pay for the drug -an insurance company or a government health authority - will need to be convinced that the product is good value. In return, the pharmaceutical company may, at some time in the future, recoup sufficient profit to pay the shareholders but also to pay for the development of the product. In the past, pharmaceutical companies... 

The common objective of all pharmaceutical companies is to discover, develop and market safe and effective medicines that will bring benefits to patients and consumers and result in profitable returns to the company. In this process it is important that, at all stages in the life cycle of a pharmaceutical product, the needs and interests... 

The prices of medicines sold to the NHS are controlled in the United Kingdom by the PPRS, negotiated periodically every 5 to 6 years by the DoH with the Association of the British Pharmaceutical Industry (ABPI), for example in 1979, 1986, 1993 and 1999. The PPRS controls the maximum - but not guaranteed - profits that pharmaceutical companies make on the capital they have invested in plant for research, development and manufacturing for sales made to the NHS. (Capital employed by the individual companies... 

Part of the apparent paradox stems from the industry s awkward position on the spectrum from publicly owned enterprise and pure private, investor-owned, and profit-driven enterprise. On the one hand, the pharmaceutical companies are structured as profit-seeking enterprises. Unlike many other profit-seeking industries, however, the research-based pharmaceutical industry cannot survive without government protection. 

Sponsors frequently try to expand patient use of patented drugs by insisting that commercial pharmaceutical companies offer deep discounts ( access pricing ) to poor patients. However, access pricing automatically reduces profits and, indirectly, the amount of money and services that pharmaceutical companies are willing to contribute to R D in the first place. The question is, how much The answer will normally depend on the private partner s ability to price discriminate by charging different prices to different users. 

C) Determine whether the action compromises the profit margin of the pharmaceutical company and therefore is not in the interest of the shareholders if so, the action should be avoided. 

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