Industry Analysis & Industry Trends
With healthcare reform allowing more individuals to gain prescription coverage, brand-name pharmaceutical and medicine manufacturers will experience a boost in demand. Rising production of branded follow-on biologic drugs will be important in offsetting the effects of widespread patent expirations, though a major increase in taxes and discounts to fill the Medicare coverage gap threatens profit in the industry... purchase to read more
Industry Report - Starting a New Business Chapter
Brand-name pharmaceutical manufacturers contend with relatively high barriers to entry, which stem from research and development costs as well as government regulations. Pharmaceutical manufacturers invest a higher percentage of their revenue in research and development (R&D), compared with companies in most other industries. As a result, new industry entrants will grapple with matching the level of R&D-related expenditures needed to succeed in this industry. Significant capital investments are required to establish manufacturing plants geared to produce drugs. Government regulatory policies also make it costly to develop and obtain approval for drugs.
High drug development costs, coupled with knowledge barriers, pose as a barrier for new industry entrants... purchase to read more