Download The global pharmaceutical industry

STRATEGIC
MANAGEMENT
Irina Raynaud
Pierre Jean Tessier
Nicolas Cabrit
Clément Tumoine
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PESTEL
Political
- Government are powerful purchasers
- Government price control
- Different coverage and reimbursement systems between countries
Economic
- 1960’ s pharmaceutical industry prospered (light regulatory control)
- 80% of the market is owned by 5 countries (USA, Japan, EU, China and
Mexico)
- Blockbuster power
- China and India = attractive countries for global manufacturing and RD
investments
- Sales and Marketing important part in competitive advantage
- 1990’s economic recession
Sociocultural
- Average life expectancy increased by over 20 years
- Consumers are well informed thanks the to the easier information access
(internet)
- Social coverage are different in many countries
- No-profit basis operation in order to help undeveloped countries
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Technological
- R&D is more efficient => importance of the innovation
- New type of industry based on new projects: biotechnology
- Speed of technologic transfer in developing countries
Environmental
- Biopharmaceutical takes a more important place and become mainstream(
many companies invest in this new sector)
Legal
- Tighter regulatory control since thalidomide issue
- Legislation set a fixed period on patent protection : 20 years from initial filling
- Creation of institutions in order to regulate the international regulation
harmonization (EMEA in Europe, International Conference Harmonization in
USA, Food and Drug Administration)
- Medicare reform in 2006 (drug coverage for elderly people)
- Legislation proposition about allowing generic imports and branded drugs in
South Africa
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Key drivers :
- R&D
- Sales and Marketing
- Arrival of new pharmaceutical sectors:
generics, biotechnologies, OTC medicines (force
companies to invest and innovate)
- Blockbusters
Major trends: - Conglomerate companies (mergers and
acquisitions)
- Pharmaceutical companies manage to be
both creative and efficient (by increasing R&D power)
- The latest trend : invest in
biopharmaceutical area
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