StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Business context - Essay Example

Comments (0) Cite this document
Summary
Pharmaceutical firms claim that they must charge very high prices for 'blockbuster' drugs because of the high cost of research and development and because they lose their monopoly rights within ten to fifteen years of commercial production commencing. Introduction Across the world, the pharmaceutical companies are feeling low due to tremendous growth in the operating as well as research & development costs of the firm…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.4% of users find it useful
Business context
Read TextPreview

Extract of sample "Business context"

Download file to see previous pages The main philosophy of R&D is that the money invested today will fetch higher profits for the company in near future. It is a complex process with a structured framework. The steps of the process consist of “synthesis and extraction of new helpful molecules, biological screening & pharmacological testing and pharmaceutical dosage formulation with stability testing.” (Pharmaceutical R&D: Costs, Risks, and Rewards, 1993) This process of developing, testing and offering the drug to the market is time consuming and expensive. Due to these factors R&D cost is gradually increasing which is directly affecting the increment of new drug prices. This will be evident if we carefully notice the new drug prices, which are growing more rapidly than the inflation rate, whereas the prices of old drug show decrement. Global pharmaceutical market scenario is extremely complex; here the large public sector investments is in basic biomedical R&D that influences the private sector to intensively fund on new research and development programs. Here the demand for the drugs are also indirectly generated i.e. the doctors and the health insurances act here as mediators to initiate demand for the drugs by prescribing them. Recently apart from the growth in the R&D cost a new crisis also gained prominence in the pharmaceutical world and that is the patentability of drugs and health related innovations. The pharmaceutical companies pour in billions of dollars on the R&D of new products and without the Intellectual Property (IP) protection law the formulations of the drugs are simply being duplicated. These duplicate formulations are synthesized at much low cost and the company, which initially developed the formulation, loses huge amount of revenue. Due to this reason the pharmaceutical companies utilizes the IP Law to monopolize the production and marketing of these innovative drugs. Here this report will make an attempt to focus on the recent scenario of pharmaceutical sector regarding the causes of growing cost in R&D segment and the importance of the intellectual patent tenure alterations for maintaining monopoly of the pharmaceutical companies. (OTA, 1993; Wei, n.d., p.1)                                           Industry Overview on high R&D costs and Patent rights As mentioned earlier, the pharmaceutical companies annually endow billions of dollars in R&D. Recent studies reflect there is a staggering growth of expenses in R&D costs of the global pharmaceutical industry. Though R&D costs are tremendously increasing day-by-day, the pharmaceutical companies think of it as a necessary evil. It is because R&D cost enables the company to synthesize new formulations and helps to open new avenues of opportunity to generate greater profits. R&D costs vary widely between different drugs as this cost depends upon the type of formulation being developed. The factors influencing the R&D cost are the probability of success, the molecule base of the new drug or modification of an existing generic drug. Development of innovative drugs cost the most, a rough estimation reveals it generally amounts to more than $800 million (CBO, 2006. p.2); it also includes the cost of failed attempts. This estimate ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Business context Essay Example | Topics and Well Written Essays - 2000 words - 1”, n.d.)
Retrieved from https://studentshare.org/visual-arts-film-studies/1426653-business-context
(Business Context Essay Example | Topics and Well Written Essays - 2000 Words - 1)
https://studentshare.org/visual-arts-film-studies/1426653-business-context.
“Business Context Essay Example | Topics and Well Written Essays - 2000 Words - 1”, n.d. https://studentshare.org/visual-arts-film-studies/1426653-business-context.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Business context

The Experiences of Boys and Girls in the Context of a Romantic Relationship

... origin are positively associated with the quality of romantic relationships. Giordano, Longmore, & Manning (2006) carried out another study using a symbolic interactionist perspective to examine the experiences of boys and girls in the context of a romantic relationship. The study focuses on the nature of communication, emotion and influence within that relationship. Although it thoroughly discusses findings of other studies on adolescent romantic relationships, it focuses on boys’ romantic perspectives. Interviews with adolescent boys involved in romantic relationships were done in private, and it was found that an examination of reports of feelings of love across the total sample does not reveal a significant gender difference...
17 Pages(4250 words)Case Study

Internal and External Environmental Analysis for the Bakery Business

Liberalization of foreign investment and technology policy of the government is supportive of establishing industrial units in the country.

Threat: The UK food regulatory authority is planning to enforce the EC Regulations relating to food labeling. The labeling requirements under the new regulations will affect the food industry as the suppliers will be legally obliged to disclose the GM content of foods to the caterers. Thus business firms in the bakery industry also will be effected through the exclusion of flexible manner of labeling arrangements in the case of flour confectionery involving GM Soya or maize. (Genetically modified and novel foods (labeling) (England) regulations, 2000).

Trend: The new subs...
6 Pages(1500 words)Case Study

Evandale's Business Plan

Evandale’s mission would have a strong impact on the company’s later brand development.
When a company determines its mission and its vision, it needed to determine its objectives to accomplish that vision. I did not see the objectives—where the company was heading through in the presentation. A clear objective would have enabled me, as an audience to also picture where the company would want to go and would serve as the benchmark for me to assess the later strategic choices the company would state in the presentation.
According to the slides, the potential demand for caviar and the sturgeon products are “100x” bigger than the current supply. I would have wanted to see a reliable source for...
7 Pages(1750 words)Case Study

The Management, Leadership and Teamwork Competencies Required by a Small Business Owner

On the other hand organizational leadership is defined as the ability based on the specific skill of an individual to lead his/her subordinates in a manner that pre-planned organizational goals could be achieved within the defined time-frame.

According to Burns (1978) and Bass (1985), transformational leadership has a set of category constructs such as values, morals, farsightedness, long term goals, principles, acute awareness about the dividing line between causes and symptoms, mission statements, strategic perspectives, and human resources. Similarly, they identify a set of category constructs in the transactional leadership also. For instance concentration on the task at hand, short term goals and tactics, confusion co...
6 Pages(1500 words)Coursework

Business Etquette for Business Communications Course

Who wants to give a guess? How about you (pointing at someone in the audience), yes, what is your name? Adam? What do you think, Adam – Money, Machines, Management, and Manpower? Why do you think so? And how about you, ma’am (someone else in the audience) – do you agree with him?

I think we are all in agreement: you could have Money, Machines and Management, but without Manpower, you cannot have a business. And unless you have good Manpower working well together, you cannot have a successful business.

Do people work well together naturally? Those of you who are familiar with office politics will say, “Of course not!” You are right: left to themselves, few people work well toget...
7 Pages(1750 words)Speech or Presentation

Which of the Business Objectives Might Best Be Applied to the Southampton Solent University

In other words, there is no explicit reference to the achievement of long term objectives and the people being involved in the business with the express intention of making profits.

In this context, the Southampton Solent University’s existence as a business organization in the strategic business sense would be defined as a clear attempt at continuously engaging in the present and future activities with a view to achieving its long term objectives of which the satisfaction of stakeholders, particularly shareholders, is of paramount importance. Its mission statement is “The pursuit of inclusive and flexible forms of Higher Education which meet the needs of employers and prepare students to succeed in a fast-...
8 Pages(2000 words)Coursework

Business Communication for Degree Access: Olympic Volunteering Consultancy

The London Organising Committee for 2012 is headed by Lord Coe but we would need to contact the Minister for the Olympics who is Tessa Jowell to place the Bid. The Olympic Games are said to need 70,000 employees with large land development in London.

To beat out the competitors with an excellent business strategy (Wikipedia) an excellent marketing strategy must be used! 26,400 pounds, of the 1 million pounds on Flyers and radio ads this company can inform the residents of Greenwich of the career training opportunity. Using Radio ads that are up to date we can gain a young volunteer base. Flyers handed out to community centers and welfare offices this company will gain other targeted volunteers.

The Census Bur...
6 Pages(1500 words)Assignment

Business Plan Real Estate Agency

re representing our company as their business consultants and our responsibilities are limited to the knowledge of the client’s business and information provided by the client.
The company Of-Fit has been operating as office supplies and equipment supplier since 1998. Their corporate office is in Aberdeen and it has excellent industry relations. The company is a sole proprietorship and its owner is Mr. Andrew Schwatz who has been working in the industry for more than 20 years. The company current staff is 8 and its revenues are £115,690 and £156,178 in 2008. The company aims to expand its operations in other business areas and regions of the UK.
The detailed business plan developed for this report incor...
12 Pages(3000 words)Business Plan

Business Sustainability and Society: Coca-Cola Company

...Running Head: Business Sustainability & Society Business Sustainability & Society [Institute’s Business Sustainability & Society Introduction Since centuries, ethics has been a crucial and significant component of the human societies that contributed enormously in the creation of norms and values through religious influences, as well as through contribution of intellectuals and philosophers in the society. Unfortunately, nowadays, it is an observation that individuals, organizations, and even nations have commenced to overlook the phenomenon of ethics in their practices, specifically in the business sector that has become the major stakeholder confronting criticisms related to ethical practices. Critics (Crane, pp. 23-29, 2007) argue...
10 Pages(2500 words)Case Study

International Business: World Economic Forum and Davos 2010

...Introduction Globalization, one of the most hotly debated issues means global capitalism to some while others consider it to be the continuation of modernism with the forces of wealth, progress, democracy and happiness at play (Kellner, 2002). Globalization is considered to be beneficial which promotes economic prosperity, cultural diversity and technological advancement. According to the critical social theory, technology and capital work together to create a new globalized and interconnected world. While each force of globalization is important, technological revolution has impacted the business models, value creation and differentiation (Spelman, 2010). The cloud computing technologies that have made the popular social networking...
7 Pages(1750 words)Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Business context for FREE!

Contact Us