Profits of pharmaceutical companies

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 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... 

Since the 1930 s, the rapid adoption of hybrid seed corn has fueled the development of the seed industry. Hybrid sales rose on the same traj ectory as corn yields to around a billion dollars today. Because the offspring of hybrid seed are not reliable, farmers were guaranteed to be repeat customers and profits flowed steadily to the seed industry. As Kloppenburg (33) notes, the sustained profitability of seed companies had brought most of the seed industry into multinational petrochemical and pharmaceutical corporations. Only Pioneer-Hybrid remains an Independent firm. 

A Kaiser Family Foundation Health Poll Reports Survey conducted February 3-6, 2005 showed that a total of 50% of respondents had an overall unfavorable view of pharmaceutical companies while only 44% were favorably disposed. Only oil and tobacco companies were viewed more unfavorably among the industries included in the survey. In addition, 70% of respondents felt that pharmaceutical companies were most interested in making profits, putting profits ahead of people, and 81% felt that prescription drug prices are not usually justified because companies charge more than necessary. Data available at www.kff.org/ healthreport/feb 2005/index.cfm. 

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. 

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... 

---