The pharmaceuticals industry in trouble

Article type: Research Article

Authors: Valverde, José Luis

Affiliations: Chair Jean Monnet of the EU, University of Granada, Granada, Spain. E-mail: [email protected]

Abstract: Health spending accounted for 9.3% of GDP on average across OECD countries in 2011. The Pharmaceutical expenditure, as a percentage of total expenditure on health, accounted for 15%. The pharmaceutical sector is highly regulated. On describe the major characteristics of the world pharmaceutical industry as one increased globalization, changing structure of competition and increased competitiveness. This are growing pressures on discovery and development. Drug liabilities become more frequent and more costly. The pharmaceutical industry is under immense pressure by external and internal stakeholders. Government and National Health Services are monopsonic practices. Pharmaceutical companies are criticised for high prices, over-intensive sales and marketing activities, presents to medical doctors, clinical trials and industry – government alliances. Lawyers, medical journals, physicians, politicians, and the media use product liabilities and marketing activities to denounce pharmaceutical companies as culprits. The pharmaceutical sector needs to demonstrate responsibility and take steps to increase awareness. Transparency would increase the credibility of the pharmaceutical industry. Corporate governance will prevent corruption by being in compliance with the legislation and establishing their own internal policies designed to prevent corruption. All firms will act more responsibly. In order to rebuild the trust the industry needs to work together and quickly.

Keywords: Pharmaceutical industry, pharmaceutical expenditure, innovation, marketing activities, liabilities, corruption, monopsony, social responsibilities

DOI: 10.3233/PPL-130361

Journal: Pharmaceuticals, Policy and Law, vol. 15, no. 1-2, pp. 51-69, 2013