Pharmaceutical companies are some of the most powerful and influential corporations in the world. They have a major impact on our health care system and the way medicines are developed, priced, and regulated. It’s no wonder that they are often the target of criticism. This infographic provides an overview of the pharmaceutical industry, its history, and some of the controversies it faces. Here are six things you may not know about these companies.
1. Pharmaceutical companies are among the most profitable industries in the world
The top 10 pharmaceutical companies in the world had a combined revenue of over $1 trillion in 2015. That’s more than the GDP of all but a handful of countries. The industry is expected to continue to grow at a rapid pace, with global sales projected to reach $1.5 trillion by 2020. If you were wondering what CDMO means, it simply stands for Contract Development and Manufacturing Organization. This type of company provides services to pharmaceutical companies and helps them develop and manufacture their drugs. It’s a rapidly growing sector of the industry and one that is expected to see even more growth in the coming years.
2. The pharmaceutical industry is concentrated in a few countries
The United States, Europe, and Japan are home to the vast majority of the world’s pharmaceutical companies. Together, these three regions account for more than 80% of the global market. The United States is by far the largest individual market, accounting for about 40% of sales. Europe is second, with around 30%, while Japan makes up just under 10%. Also, CDMO services are growing at a rapid pace and are expected to reach $50 billion by 2025. It’s a rapidly growing sector of the industry and one that is expected to see even more growth in the coming years.
3. The industry is highly regulated
The pharmaceutical industry is one of the most heavily regulated in the world. Drugs go through lengthy CMC consulting processes before they can be completely approved and sold. This process can take up to 10 years and cost billions of dollars. In addition to government regulation, pharmaceutical companies are also subject to strict rules from industry bodies such as the FDA. Also, CDMO services are growing at a rapid pace and are expected to reach $50 billion by 2025. It’s interesting to note that, despite all of the regulations, the industry is still quite profitable.
4. Pharmaceutical companies have a long history
The origins of the pharmaceutical industry can be traced back to ancient times. The first known pharmacies were in Mesopotamia, and the first recorded prescriptions date back to around 1600 BCE. In medieval Europe, apothecaries were an important part of the health care system. The modern pharmaceutical industry began to take shape in the 19th century with the advent of synthetic drugs. The industry has since grown into a global behemoth. It’s interesting to note that, despite all of the regulations, the industry is still quite profitable.
5. The industry is facing criticism
The pharmaceutical industry is no stranger to criticism. It has been accused of everything from price-gouging to putting profits ahead of patients. In recent years, there has been particular scrutiny of the high prices of drugs, particularly those used to treat rare diseases. There is also concern about the industry’s influence on the scientific process and the way drugs are developed and marketed. Additionally, the industry is facing criticism for its alleged role in the opioid epidemic. It’s interesting to note that, despite all of the criticism, the industry is still quite profitable.
6. The industry is facing challenges
The pharmaceutical industry is facing a number of challenges in the coming years. These include the expiration of patents on blockbuster drugs, increasing regulation, and generic competition. In addition, the industry is struggling to develop new antibiotics and other treatments for drug-resistant superbugs. The future of the pharmaceutical industry is uncertain, but it remains one of the most profitable and powerful industries in the world. Also, the industry is highly consolidated, with the top 10 companies accounting for about two-thirds of global sales. It’s an industry worth watching closely.
The pharmaceutical industry is a vital part of the global economy. It is a highly regulated industry that is facing criticism and challenges. Despite this, it remains profitable and powerful. The future of the pharmaceutical industry is uncertain but it is expected to continue to grow. Also, CDMO services are growing at a rapid pace and are expected to reach $50 billion by 2025. This is a sector of the industry that is worth watching closely.
