What is The Pharmaceutical Industry?

Summary

The pharmaceutical industry encompasses manufacturers that create drugs, including both original and generic manufacturers. Original manufacturers, also known as research-based companies, focus on developing new drugs and often lead in specific medical areas, investing heavily in branding and sales. In contrast, generic manufacturers produce drugs using expired patents, offering lower-cost alternatives without conducting research. The industry's product range is extensive, covering drugs for human and veterinary medicine, excluding medical devices. Pharmaceutical companies are subject to strict regulations, including pharmacovigilance, risk management, and adherence to good manufacturing practices. Notable industry leaders include Hoffmann-La Roche, Pfizer, Merck, Johnson & Johnson, Bristol-Myers Squibb, Sanofi, Advi, and GlaxoSmithKline, with a combined turnover exceeding $350 billion.

Takeaways

• 💊 The pharmaceutical industry includes companies that manufacture drugs, known as pharmaceutical manufacturers.
• 🔬 Pharmaceutical companies are involved in research and development, manufacturing, and marketing of drugs.
• 🏭 There are two main types of manufacturers: original (research-based) manufacturers and generic manufacturers.
• 🧪 Original manufacturers specialize in specific areas and invest heavily in branding and sales, while generic manufacturers offer drugs at lower prices after patent expiration.
• 📈 Original manufacturers often work with subsidiaries or external manufacturers to produce generics and improve the value-added cycle.
• 🐾 The industry's product range is vast, including drugs for human and veterinary medicine, but not medical devices.
• 🏗️ Pharmaceutical companies can manufacture their products or use contract manufacturers like contract manufacturing organizations (CMOs).
• 📜 Companies are subject to special pharmaceutical laws, including pharmacovigilance and risk management systems, and must adhere to good manufacturing practices.
• 🌍 Each country has its own set of laws and regulations that pharmaceutical companies must follow.
• 💰 The world's largest pharmaceutical manufacturers have a combined turnover of over 350 billion U.S. dollars.
• 📊 The largest companies include Hoffmann-La Roche, Pfizer, Merck, Johnson and Johnson, Bristol-Myers Squibb, Sanofi, Advi, and GlaxoSmithKline.

Q & A

What is the pharmaceutical industry?

The pharmaceutical industry consists of manufacturers, also known as pharmaceutical companies, that produce drugs. This includes a range of activities from research and development of new active ingredients to the manufacturing and marketing of pharmaceuticals.

What are the two main groups pharmaceutical manufacturers can be divided into?

Pharmaceutical manufacturers can be divided into two main groups: original manufacturers, also known as research-based manufacturers, and generic manufacturers.

What characterizes original manufacturers in the pharmaceutical industry?

Original manufacturers are characterized by conducting pharmaceutical research and development of new drugs. They often specialize in selected indication areas where they are market leaders and invest heavily in branding and sales.

What is the primary difference between generic and original manufacturers?

Generic manufacturers typically do not conduct research but use active ingredients for which patent protection has expired. They can offer drugs of the same quality at significantly lower prices due to lower research and development costs.

How do original manufacturers work with generics?

Original manufacturers often work with subsidiaries that produce generics or cooperate with external generics manufacturers to improve the value-added cycle of their active ingredients.

What types of products are included in the pharmaceutical companies' product range?

The product range includes a wide variety of drugs for both human and veterinary medicine, such as finished drugs, blood preparations, serums, vaccines, in vivo diagnostics, allergen preparations, and drugs for novel therapies like gene therapeutics and biotechnologically processed tissue products.

What are some examples of novel therapies mentioned in the script?

Examples of novel therapies include gene therapeutics, somatic cell therapeutics, and biotechnologically processed tissue products.

What is not considered a medicine by pharmaceutical companies?

Medical devices such as bandages, catheters, or artificial joints are not considered medicines, even if some pharmaceutical companies manufacture them.

What are the special obligations that pharmaceutical companies are subject to?

Pharmaceutical companies are subject to special pharmaceutical law obligations, which include the implementation of a pharmacovigilance and risk management system, as well as a quality management system in accordance with good manufacturing practices for clinical trials.

What are the largest pharmaceutical manufacturers in the world?

The world's largest pharmaceutical manufacturers are currently Hoffmann La Roche, Pfizer, Merck, Johnson and Johnson, Bristol-Myers Squibb, Sanofi, Advi, and GlaxoSmithKline.

What is the combined turnover of the mentioned largest pharmaceutical manufacturers?

Together, these companies have a turnover of more than 350 billion U.S. dollars.

What are the different types of manufacturers that can produce medicines?

Medicines can be manufactured by the pharmaceutical company themselves or by contract manufacturers, such as a contract manufacturing organization.

What is the role of pharmacovigilance in the pharmaceutical industry?

Pharmacovigilance is a system that monitors the safety of drugs and ensures that the benefits of using a medicine outweigh any potential side effects or risks once it is available to patients.