The pharmaceutical industry is the medicines-related part of the healthcare business. The industry includes various subareas responsible for the development, manufacturing and marketing of medicines. Such more or less interconnected sub areas consist of drug manufacturers, drug sellers, and biotechnology companies. The pharmaceutical industry’s main objective is to provide medicines that prevent infections, protect health, and treat diseases. Therefore, a number of international regulatory bodies such as the World Health Organization, the US Food and Drug Administration (FDA) and the Medicine and Healthcare Products Regulatory Agency (MHRA) track things like drug safety, licenses, efficiency, quality and pricing.
Thanks to a research-oriented approach that has advanced technology, developed infrastructure, and expanded work in the field of bioscience, the pharmaceutical industry has made substantial progress over the past decade. Different treatments have been developed thanks to biotechnology to cure or stop the growth of several major diseases, including HIV and certain cancer types. In 2018, the global pharma industry stood at $1.2 trillion, and the IQVIA Institute for Human Data Science expects $1.5 trillion by 2023.
A typical pharma industry supply chain is
Raw material and packaging material – Material warehouses – Manufacturing units – Finished Goods Warehouses/Central Warehouses – Regional Warehouses – Distributors/Super Stockists – Retailers/Hospitals – Consumers.
Manufacturers in the pharmaceutical industry and all the people involved in production are very stringent in protecting the safety and quality of drugs at each stage of the supply chain. They use raw material suppliers that are set, approved by the regulator. All the companies store raw and packaging materials in separate warehouses.
Pharmaceutical companies with a large turnover place a particular emphasis on their supply chain management. For eg: GlaxoSmithKline (GSK) spends over $4.5 billion each year manufacturing and supplying products. Johnson & Johnson (JNJ) spends approximately $30 billion annually in leveraging its purchasing power to set sustainability expectations beyond its operations. This is done by them because even a small variation in the supply chain could lead to multiple disturbances in the system. In the research-intensive, highly dynamic pharmaceutical market, there is a system of regulations. Indeed the industry controls the entire cycle of drug development, including patent application, generic competition, marketing acceptance, and patent expiration. Regulations also oversee all prescribing physicians, wholesalers, distributors, and pharmaceutical manufacturers.
Marketing firms in the pharmaceutical industry are helping to increase drug market scope. A manufacturing facility may not be able to sell its goods in a particular region at times because it lacks a license or distribution network to do so. This is where businesses from the drug marketing industry come in to promote sales.Pharmaceutical firms are either reliant on their in-house R&D centers or depend on biotechnology firms to provide them license to produce proprietary products. Since the last decade there has been an increasing need for pharmaceuticals because of the new diseases coming into existence, medications becoming complex and various other factors that drive the growth of the pharmaceutical products. Some of these factors are Aging Population, Changing lifestyles, Increased income and chronic diseases, Globalization and urbanization.