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European Pharmaceutical Contractor
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Recent developments are threatening to wrest control of pricing further from the hands of pharmaceutical companies. With pricing as the single biggest determinant of profitability for the pharmaceutical industry, if its companies are to avoid the nightmare of having core pricing decisions taken out of their hands they will have to act soon. Negotiation and debate with international bodies in a collective manner on the principles of international pricing is urgently needed if balanced solutions are to be agreed upon.
Globalisation the Pharma Way
The pharmaceutical industry provides an excellent example of 'real life' negative consequences of the globalisation of an industry sector. At first sight, globalisation appears to offer a win-win opportunity for both suppliers and customers. In an R&D-intensive sector like pharmaceuticals, it allows the expensive costs associated with R&D to be recouped over a much larger customer base. In parts of companies such as manufacturing, it offers economies of scale. These improvements in efficiency should translate through more open world trade and competition into lower unit costs and lower prices for consumers.
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