Chapter 3 Closing Case: The Pharmaceutical Industry Historically‚ the pharmaceutical industry has been a profitable one. Between 2002 and 2006 the average rate of return on invested capital (ROIC) for firms in the industry was 16.45 percent. Put differently‚ for every dollar of capital invested in the industry‚ the average pharmaceutical firm generated 16.45 cents of profit. This compares with an average return on invested capital of 12.76 percent for firms in the computer hardware industry‚
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business of Pharmaceutical companies:- Pharmaceutical companies are not especially big in terms of revenues‚ but they are very profitable. For instance‚ in 2001‚ Pfizer was ranked 127th in the world on total revenue (US$32·2 billion) but 7th in terms of profit.29 The pharmaceutical industry is the most profitable business sector‚ with an average 16·2% profit‚ ahead of financial companies (11·6%) and beverages (10%).30 However‚ net income growth has declined‚ and growth in the value of drug
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CPI Case Bob Marsh a pharmacy manager takes a job with Cooper Pharmaceuticals and has an illustrious 12 year career with them. Throughout his career and especially towards the end Bob was conflicted with doing what was best for his customers and satisfying management. Every year management would do performance evaluations measuring how the salesman’s sales volume was and how his/her relationship improved with the physicians they try to sell to. Bob was always hitting or exceeding quota and had
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Questions for Review 1. Pharmaceutical companies do have a responsibility to distribute drugs for a low cost in developing and poorer countries. Africa’s GDP‚ and per capita income is very low so they cannot afford to buy top quality medicines. One main argument for this approach is the AIDS epidemic in Africa. A main argument against this is that the treatment for AIDS is very expensive to provide to a whole country for free. 2. The principal arguments of pharmaceutical companies that oppose making
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Questions to Consider in Case Write-up: 1. What is the best argument Heather Yates can make to justify charging Windham Pharmaceuticals for impressions instead of click-throughs? Does she have acceptable alternatives? Click-throughs: People showing an active interest‚ but not necessarily sales. Impressions: Viewers. High quality “views” (people who will by eventually) are more valuable than low quality “look-in” click-through. “wanted to learn more”. Is this more accurate?
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Pharmaceutical Marketing Merck “Merck has gone beyond developing and selling prescription pharmaceuticals. It formed joint ventures in 1989 with Johnson & Johnson to sell over the-counter pharmaceuticals; in 1991 with DuPont to expand basic research‚ and in 2000 with Scherigng-Plough to develop and market new prescriptions medicines. In 1997‚ Merck and Rhone-Poulenc S.A. (now Sanofi-Aventis S.A.) combined animal health and poultry genetics business to form Merial Limited‚ a fully integrated
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Teva Pharmaceutical Industries‚ Ltd 1) External Environment: The Pharmaceutical Industry is dependent on political and legal conditions of general environment. In pharmaceutical industry we have two kind of medications which are generic or innovative. Innovative pharmaceutical industry success depends on the patent protection in the industry. For example‚ in United States innovative industry can have 10 to 12 years of patent protection life from the time that product is for sale in the
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Case Study: Flower Pharmaceuticals A. The table below lists each category and states whether the cost is relevant‚ if it is an implicit or explicit cost‚ and if the cost has been properly calculated (note: company is currently operating at 65% capacity). Cost category | Relevant | Implicit/Explicit | Calculated correctly? | Fully allocated capital cost1 | N | Explicit | Y | Direct labor cost2 | Y | Explicit | Y | Materials Purchased3 | Y | Explicit | Y | Materials Inventoried4
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Alloy - An alloy is a substance made by melting two or more elements together‚ at least one of them a metal. An Example: Examples of alloys include brass‚ bronze‚ 14k gold‚ and sterling silver. covalent bond - A covalent bond is a chemical link between two atoms in which electrons are shared between them. An Example: There is covalent between the oxygen and each hydrogen in (H 2 O). Each of the bonds contains two electrons - one from a hydrogen atom and one from the oxygen atom. Both atoms
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The film Food Inc. shows the many ugly‚ horrors of the industrial food system. Throughout‚ the film we see the behind-the-scenes of how are food is made from the egg to the chicken‚ to seed to the market‚ and so on. There needs to be a change on how our food is produced and created. The only way to do that is spread this health movement to the world. Many of us don’t realize all the chemicals that are put into our food. It makes us wonder “Is this actually real‚ fresh meat as the labels say?” During
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