The pharmaceutical industry creates, finds, develops, manufactures, and sells pharmaceutical drugs or medicines to be prescribed to patients, for the purpose to heal them of their diseases, cure them of their conditions, or to relieve them of their symptoms. Pharmaceutical industries can manufacture both active and non-active pharmaceuticals and other medical devices. The active pharmaceutical ingredients are essential for the therapeutic effect while the non-active ingredients are known to augment the action of the active ingredients. Active pharmaceutical ingredients include alkaloids, antidepressants, anticonvulsants, antiemetics, antibiotics, anti-inflammatory drugs, antidepressants, estrogens, fibers, hormones, metabolic toxins, medical-gradegrade drugs, medications used in the treatment of cancer, medications for oncology, opium, phenytoin, tetracyclines, thyroid hormones, vasoconstrictors, and vasodilators. Non-active pharmaceuticals consist of amino acids, azole compounds, chemicals for the breakdown of diet products, and drugs used in the treatment of alcoholism, acne, colitis, diabetes, heart disease, herpes, kidney disease, oral contraceptives, osteoporosis, oral infections, rheumatoid arthritis, sex hormone regulation, stomach disorders, testosterone treatment, testosterone replacement therapy, synthetic hormones, vitamins, and enzymes. Other categories of pharmaceuticals include hormones, food additives, and industrial chemicals.
As far as the future is concerned, the Pharma industry has no definite boundaries. Whether it will become a billion-dollar market, with new products coming up every day, or whether it will remain small, is something that cannot be predicted in the short run. What is certain is that the Pharma industry is a world leader when it comes to developing, producing, and selling pharmaceutical products; in terms of revenues, sales, and income generated through drug retail, institutional sales, direct marketing, and pharmacy sales.
In terms of size, the pharmaceutical industry is the largest financial market in the world, with an annual revenue of more than $60 billion. It accounts for a significant portion of total gross domestic product in the United States. In terms of profitability, the pharmaceutical company is far from the bottom in all of the business sectors. But with all this going for it, the big Pharma companies have remained relatively untouched by the introduction of generic drugs.
So what makes the big pharmaceuticals different from the rest? For starters, they have a far larger R&D budget. They also invest their money on research and development. They are not big on investing in new commercialization technologies because these drugs do not add value to their business, in the same way that drugs that are brand new are. The companies have also been careful not to focus solely on research and development, but to put ample resources into commercializing their existing products as well.
With the advent of new technologies, there has been a marked increase in the number of innovations in the field of pharmaceuticals. Biotechnological plants and production lines that were once reserved for small and medium enterprises are now a standard feature in all pharmaceutical establishments. This has led to a situation where some pharmaceuticals are losing out on opportunities to keep up with competition, which in turn, has had adverse consequences for the overall profitability of the industry. This explains why there has been a steady decline in the Pharma industry share. The post-war scenario however, is ripe with opportunity for Pharma players to surge ahead of their competitors in the sector.
The introduction of generic drugs is a major driving force behind Pharma industry expansion. Generic drugs are made to match the composition of the active ingredients of the original medicines. This means that consumers need not worry about whether they are getting a dose of the same active ingredient or not. Because it is the same medication, it will work in the same way in other forms as well, which is why it is becoming increasingly popular among people of all ages.