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  In the industry we have 2 groups
1. Typical pharmaceutical multinational giants
responsible for
a) introducing many innovative products
b) employing many employees reaching 100,000
c) branches some time reaching hundreds

2. Biotechnology companies that

a) harnesses recombinant DNA technology and
develop drugs some came a billion dollar size
without promoting or selling their products
instead they allied with typical companies which
in turn market the products

 Not all biotechnology companies have fully

integrated with the market & achieved profits

 Because of the extreme competition most

company now have chosen to focus their
resources on specific areas where their long
lasting history of innovation & success allow
them to be relatively protected from
competition such companies are called
“niche”

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 Contract research organizations (CRO)
Clinical site management companies (CSM)
Contract sales organizations (CSO)

In the past 30-40 years the industry has passed

through
1) innovation phase (early 1980s)
2) price increase phase (late 1980s)
3) cost reduction & consolidation phase (early 1990s)
4) recent comeback of innovation (late 1990s)

The recent trend with the most impact on the

industry is the globalization and consolidation drives

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 Globalization to be effective some requirements
have to be met:
a) Local expertise
b) Sale capabilities
c) Customer service network
d) Supply base

The scope of consolidation

a) Economics of scale (the greater the quantity of a
good produced, the lower the per-unit fixed cost)
b) Financial position
c) Filling of technical gap
d) Sharing distribution networks
e) Therapeutic area synergy
f) Critical mass (When a company reaches critical
mass, it is thought that they can remain viable
without having to add any more investment)

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 Stakeholder is a person or group of persons with

which the company has or wants to develop a
relationship

 In the industry there are internal and external

stakeholder

 internal includes every employee where ever he

works & thus his education, training are cared for
by the company

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  External stakeholders includes

1) Inputting: suppliers, regulators & politicians

because they all play a role in the company
success

2) Mediators: prescribers, university professors,

health care professionals who stand between the
company and its final customers

3) Consumers: patients, their families, or any

support or advocacy group, general public.

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