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 - Industry Investment Chapter
The Brand Name Pharmaceutical Manufacturing industry is capital intensive. Pharmaceutical manufacturing requires research laboratories and facilities, manufacturing machinery as well as other technology and equipment, which add to capital costs. However, wage costs are also high as this industry requires skilled labor to provide value-added services. For example, pharmaceutical researchers, scientists, technicians and laboratory assistants typically have considerable education and training, thus resulting in a high average wage. In 2015, for every dollar spent on labor, an estimated $0.34 is spent on capital.
Over the past five years, capital expenditures have moderately declined and are expected to continue steadily falling over the next five years... purchase to read more