Free Report On Pharmaceutical Industry As An Emerging Industry And The Proof Of Its Emergence

Type of paper: Report

Topic: Industry, Pharmacy, Medicine, Pharmacology, Business, Market, Company, Finance

Pages: 9

Words: 2475

Published: 2020/12/07

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Business Paper on Pharmaceutical Industry

Business Paper on Pharmaceutical Industry


The pharmaceutical industry mainly develops manufactures and markets drugs or licensed for use their products as medicines to cure a variety of diseases. The companies of this industry have got the permission to produce and sell generic or branded medicines and medical instruments. In order to produce new medications and devices a number of laws have to be followed by the companies of this sector and the companies have to patent their new products to avoid duplicity. Apart from that Pharmaceutical companies have to make sure the manufactured drugs and the medicines should pass the test ensuring the safe and secure marketing of the products. In this paper a report has been presented on Pharmaceutical Industry. Several topics related to Pharmaceutical Industry have been discussed in the report such as the business model of the industry, the role of technology, the governance of the sector, the role of investment, production and sales regarding to the industry and most importantly the supply network of Pharmaceutical Industry to show that there is a lot of chance for this particular industry to grow as one of the emerging industry globally (Ahlering).

In order to show that Pharmaceutical Industry is an emerging industry a number of charts and detailed information have been supplied in the report to support the fact.
Figure 1: Global Pharmaceutical Market Size
The figure 1 suggests the global Pharmaceutical Market size where India and China are tier emerging market as few African markets have been shown in the figure. So it can be easily figured out the Pharmaceutical Industry has got a lot of possibilities in the global market yet to be discovered.
Figure 2: Contribution to Global Growth and the expected market share of Pharmaceutical Industry
The chart in the figure 2 shows clearly that as the year progresses the contribution of the Pharmaceutical Industry is quite improving to the Global growth and the predicted numbers for Pharmaceutical Industry is quite impressive too as the chart shows the Market share for Pharmaceutical Industry will be improving in 2016 and rest of the coming years. So it can be said that the industry is an emerging industry.
Figure 3: The Market exhibition of medicines and the growth structure till 2018
In Figure 3 the markets for medicines related to Pharmaceutical Industry is presented and the numbers are showing growth quite significantly. The market shares in North America and Europe is presenting supporting data for the emerging Pharmaceutical Industry (Carroll).
Figure 5: The chart representing customer centric supply chain of Pharmaceutical Industry
In above figure 5 the pie charts are showing that customer centric supply chain of Pharmaceutical Industries increasing significantly in support of the emerging industry to a certain extent and the efficiency is significantly high.
Figure 6: A comparison of improvement in sale from 2012 to 2017 in Pharmaceutical Industry
The most important statistics in customer centric supply chain of Pharmaceutical Industry is the improving numbers in sales figure that proves to be the ideal statistics for this emerging industry.
Figure 7: Market figure in Sales till 2017

Another estimation of sales has been presented to show in improvements of sale in different continents till 2017 in figure 7.

Figure 8: Global Growth shift in opportunities in Pharmaceutical Industry
Figure 8 has been shown to figure out that in future the prospect is certainly endless for Pharmaceutical Industry as there is evidence that will show the market is shifting to the mature market to emerging markets in case of Pharmaceutical Industry.
Figure 9: Sales and growth figure in Emerging markets for Pharmaceutical Industry
As the breakdowns and charts shows it is quite impressive to know that the sales figure and the growth figure is outstanding in the emerging market for this industry as shown in figure 9.
Figure 10: Global Market of Pharmaceutical Industry
As per shown in figure 10 total market figures is exceptional and the global market by regions presenting the same analysis in support of the emerging Pharmaceutical Industry.
Figure 11: Global emerging market in Pharmaceutical Industry
As shown in figure 11 China and Asia can become the vital emerging market and it will have the ability to become third largest market of Pharmaceutical Industry as per the data.
Therefore the entire charts presented in the support of the Pharmaceutical Industry can provide enough evidence to prove this market is emerging significantly ('Christ Divests Pharmaceutical Water Business To BWT').

Research on Pharmaceutical Industry

In order to analyze the market, business model, investment role, production and sales of Pharmaceutical Industry a thorough research on the Pharmaceutical Industry has to be done in the project to understand every aspect related to the industry that can influence the industry to a larger extent. The companies of the Pharmaceutical Industry have always tried to manufacture new innovative medication and instruments technically sound in order to spot the different marking style. To make new innovation the Pharmaceutical companies have to invest a lot of capital in research and development work and hire professionals who are technically as well as mentally very efficient. The job is not very easy though. Companies have to fund a lot of money in promoting their products to. The liabilities are huge for the companies as they deals with the drugs that can be used to have life of human (Crosse). Latest technology has played its part very efficiently to generate more business products for the corporations of this sector. The investment is also needed from the public to secure the research and development work simultaneously with its marketing of products. The employees of these sectors have been paid highly for their jobs and it is the onus for them to improve the business of the companies by inventing new chemical drugs and patenting them to the companies’ well being. The marketing team and the managerial staffs have to make sure every side of the company will perform as per requirement. The market analysis is also a vital form of business and in the upcoming time the emerging markets like China, India, Russia and Brazil are most favorite countries for every Pharmaceutical company (Espejo). Also the government funding is highly essential for this emerging industry to grow fully. The production and the supply unit have to work according to the business model of the companies in order to generate maximum revenues for the companies of Pharmaceutical Industry.

Role of Mature and Emerging Markets

As Pharmaceutical Industry is an emerging market therefore market analysis of the manufactured products has to be evaluated to show the business of Pharmaceutical Industry. in the past decade or so the companies of Pharmaceutical Industry is depending on some matured markets like US, Europe, Japan, Germany, Britain etc but in recent years the market for the products has been improved significantly (Slater, Paliwoda and Slater). As per the estimation China and India can be the emerging markets for the companies of Pharmaceutical Industry and they can be the vital consumers of Pharmaceutical products in upcoming years (Hamilton). As shown in the figure 8 India, China, Argentina, Korea, Singapore, Middle Europe, Malaysia and Brazil can be the emerging markets significantly where as shown in Figure 11 China can be the third largest Pharmaceutical Market in the world. Though 5% of GDP is spent in China for health care in the upcoming years if the situation is improved the market can improve quite a bit in case of China only.
Figure 12: The big five of the global market
As the figure 12 shows China, India, Russia, South Africa and Brazil are the big five in order to their GDP basis the countries can prove to be a vital market for Pharmaceutical Industry if they spent more on healthcare section.

Business Model of Pharmaceutical Industry

In order to discuss a business paper on Pharmaceutical Industry the business model has been presented in the section.
Figure 12: Research Model of Pharmaceutical Industry
The business model of Pharmaceutical Industry is stared from its Research model. As the companies are dependent to make something more innovative and efficient a lot of research done it order to achieve the best results (Smith). First of all as shown in figure 12, innovation section is consisted of making new creative products by the help of medical students and researchers. In the next part the process is driven to a new stage where the effects of the medicines are tested and it has sent for clinical trials through public funding (Kraslawski and Turunen).
Figure 13: Business Model of Pharmaceutical Industry
In figure 13 the business model of Pharmaceutical Company has shown the sales management is done through three parts. Through the whole seller or directly the products are sent to pharmacy or healthcare institution from where it reaches to the patients. Through physician also the business is promoted. Each case the cash is transferred either online or through the agents.
Figure 14: Industry Dynamics
Also the industry dynamics shown in figure 14 describes the manufacturing of services, functional polymers and drug delivery services are the three parts of industry dynamics Pharmaceutical Industry.

Role of Technology in Pharmaceutical Industry

In Pharmaceutical Industry the role of the technology is endless. In order to make new medicines many biological experiments have to be done. The Bio-engineering is the most important technology that is used in Pharmaceutical Industry (Lane and Probert).
Figure 15: Biotechnology in Pharmaceutical Industry

The figure 15 shows that biotechnology is used 20% in Pharmaceutical Industry which is the highest in any industry.

Figure 16: Biotechnology used in Pharmaceutical Industry
There are five most important biotechnologies that is used in Pharmaceutical Industry such as Natural regeneration, cultivation methods, tissue culture, natural breeding and modern biotechnology. Modern biotechnology has four different parts such as mentioned in the figure 16.

Role of Government in Pharmaceutical Industry

In order to support the emerging Pharmaceutical Industry the government has to take certain steps to promote the industry to a larger extent. The government has policies with healthcare section that is helpful for the industry (Spilsbury). Apart from that the government has to fund in the research and the development work to invent new medicines and life saving chemical drugs. Besides the tax module should be revised in case of the Pharmaceutical Industry as they are working to secure humanity. Also through the direct investment the government can help the companies of Pharmaceutical Industry to make growth in the market. The government has to fund in the section by changing laws and the sales tax to the Pharmaceutical products should be revised to inspire the industry (Lefaix-Durand and Sinclair-Desgagné). The government also quite helpful in promoting new research work as it has seen the possible of an emerging industry. Other than that the government has to encourage other industries to invest in the Pharmaceutical Industry in order to make the companies grow.


For the investment prospective the possibilities are quite excellent too. As in Pharmaceutical Industry the companies need fund in order to make new research and development work it is very essential that the supports are coming in investment sectors (Sharma and Goswami). By analysis of the market prospective of Pharmaceutical Industry more investment is coming from public in order to expand the business of Pharmaceutical Industry.
Figure 17: Investment in Pharmaceutical Industry
The figure 17 shown in above represents the funding and investment for Pharmaceutical Industry. In case of global health and research and development 42 % of the funding is going towards Pharmaceutical Industry. It is certainly an impressive statistics.
Figure 18: Global Pharmaceutical Industry investment and Annual growth rate
In the figure 18 the bar chart is showing a large growth in Pharmaceutical Industry as well as the investment. The market is very wide open in sense of investment prospect therefore more investment has come to Pharmaceutical Industry.
Figure 19: Investment in all sector in percentage
In global market 11% of the money from the investors is going towards Pharmaceutical Industry according to the pie chart shown in figure 19. That is fourth best investment after oil & gas, FMCG and automotives sectors.

Production & Sales

The production and the sales figure of the companies in Pharmaceutical Industry have got quite impressive numbers. The figures have certainly certified the demand and growth of the sector.
Figure 20: Global market share forecast
In sales prospective figure 20 is showing that Pharmaceutical Industry has hold the market share in different countries as it is mentioned in the pie chart. So the impressive number in global market share has provided enough evidence for Pharmaceutical Industry that the sale in improving year on year basis significantly (Santoro and Gorrie).

Apart from that in figure 9 the production and sales of Pharmaceutical Industry has been shown in a detailed way.

Figure 21: Expectation Growth of revenue of Pharmaceutical Industry year on year basis
Figure 21 has certainly produce evidences that the assumption figure regarded to Pharmaceutical Industry is quite impressive indeed. By 2018 Pharmaceutical Industry should see a revenue growth of 28.6% and the total revenue of the industry might be seen $ 9.82 billion.

Supply Networks of Pharmaceutical Industry

The supply networks of Pharmaceutical Industry are a vital portion of discussion as it can ensure the working capability of the industry to a clear way. It has to be mentioned that the supply Networks of Pharmaceutical Industry is quite complicated indeed (Nivoix and Nguyen). There are many steps that have been followed to maintain the supply and distribution process. A lot of money and labor has been expensed in order to run the networks well.
Figure 22: Supply Networks of Pharmaceutical Industry
The complex procedure of supply Networks of Pharmaceutical Industry has been presented in figure 22. First of all the administrators have to made contracts both to the consumers and the manufactures and they have to make reimbursement deals with providers and pharmacies. Then the products have delivered to the distributors from manufacturers. In between many secondary monetary exchanges has been made. The products then go to the common people by hand of dealers and distributors in a larger chain system (Piila and Haapasalo). Most of all it has to be clarified that in order to set the best networking system the companies of the Pharmaceutical Industry have made changes in the system to improve it day by day.


In the entire paper several important factors and points have been taken under consideration to produce the business paper on Pharmaceutical Industry which is an emerging industry and it has got many scopes to flourish as a leading industry in the upcoming future. Every aspect is pointing towards a shining future for the Pharmaceutical Industry and it is full of opportunities both in global as well as local market. The market prospect is one of the brightest parts in the industry. Apart from that the emerging market can be the future dominant markets for Pharmaceutical Industry. New patents of chemical drug is improving day by day that exposes future chances for Pharmaceutical companies to a broader way. There is no chance of contracting the business of Pharmaceutical Industry and investments are coming quite efficiently to improve the situation. The demand sector is improving also so the production is quite impressive and it improves the sales as well as the profit figures of the companies in Pharmaceutical Industry. In the upcoming future by analyzing the business model of the Pharmaceutical Industry it can be concluded that there is enormous chances for Pharmaceutical Industry as well as the companies of the same. The said industry has potential chances to become one of the best industries in the global market and it can support the global growth to a significant point that can be rest assured.


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"Free Report On Pharmaceutical Industry As An Emerging Industry And The Proof Of Its Emergence," Free Essay Examples -, 07-Dec-2020. [Online]. Available: [Accessed: 27-Oct-2021].
Free Report On Pharmaceutical Industry As An Emerging Industry And The Proof Of Its Emergence. Free Essay Examples - Published Dec 07, 2020. Accessed October 27, 2021.

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