Analysis Of Top Five Blockbuster Drugs INSIDE THE Pharmaceutical Industry
The pharmaceutical industry is growing faster than a great many other industries in existence. Innovator drugs manufactured by these industry like a patent coverage of around twenty years.
In my record, I shall clarify the difference between an innovator and universal pharmaceutical industries and in so doing compare and analyze the five highest
grossing drugs ever. Further, I would compare their deal throughout their patent life and following the expiry of these patent life.
In this technology driven world, the knowing of various brands is becoming common knowledge. Majority of the individuals identify brands like Apple, Samsung, Honda, Toyota, Tata, Vodafone and Reliance and some even possess decent understanding of them. The industry with most unpopular brands is the pharmaceutical industry.
This doesn't change the actual fact that pharmaceutical industry is making huge earnings. With the spread of epidemics and diseases, the pharmaceutical industry is blooming. Pharmaceutical drugs have a quite long patent life (around twenty years) than
products of other companies. During the patent life of a certain drug, the particular company likes a monopoly. Recognition regarding pharmaceutical industry, their investment patterns, and their earnings generation is very important.
Objectives of the Study
- To determine the difference between General and Innovator drugs.
- Differentiate between medication, brand, and company.
- To understand patent safeguard laws.
- To assess the profit made by five highest grossing drugs on the globe.
- To observe the sale habits during patent life and post patent life.
- To understand the role of FDA in regulating the pharmaceutical industry.
All the firms manufacturing medications, injectable, inhalers, vaccines and key health care products come under the pharmaceutical industry.
Pharmaceutical Companies are broadly grouped into two types.
- Innovator Companies
- Generic Companies
Innovator companies are those companies which do the troublesome job. They identify the disease, study the creating agent, create a molecule, test the molecule, develop the drug, test it on animals, test drive it on humans, examine the adverse effects, get the medication approved by FDA (Food and Medication Administration), manufacture it and lastly sell it on the market.
The above process of developing a completely new drug requires an investment of 10 to 20 years of time and $1 billion to $10 billion of capital. Apart from the above labor, FDA takes more 2 to 5 years to approve the medication. In return, the business gets a patent coverage on the aforementioned product for around 20 years, if applied.
The company relishes a monopoly on the market so long as the patent of the product lasts. Of all the molecules developed, only 10% make to the marketplace. The investment required in an innovator company is humongous.
Companies like Pfizer, Novartis, Amgen, AstraZeneca and Eli Lilly are Innovators.
Generic companies, on the other side, play it safe. They don't develop any molecule, instead, they develop the innovator's medication at lower cost. When the innovator drug's patent expires, the universal companies flood the market with their drugs at a lower price. Since generic companies don't possess a patent coverage, they have to face competition from the other generic companies as well as the innovator itself.
Almost all Indian pharmaceutical companies are general in nature.
Companies like Sandoz, Ranbaxy, Cipla, and Teva are Universal.
There are 3 conditions used while discussing pharmaceutical products are medicine also called a molecule or universal name, the brand name, and the company. I'll differentiate between the 3 using the exemplory case of a common medicine called Crocin.
- Drug/Molecule/Sodium/Generic Name - It denotes the composition of the product, here medicine. Many drugs can have the same generic name however, not the same brand.
- Brand/ Brand Name - It's the unique name given by the company to its product. No two brand name could possibly be the same.
- Company - It's the organization that companies the medication and offers it on the market.
Patent and Intellectual Property
A Patent is a committed action by the federal government and WTO (World Trade Business), ensuring the owner monopoly of a certain entity for a particular time frame. Anybody or organization must take permission from the patent owner to replicate a part or whole of his patented entity, failing that your patent owner contains the power to sue the certain person or the organization in the courtroom of law.
The volume of patents released in the pharmaceutical industry very good exceeds the amount of patents issued in any other industry. You will discover 2 types of patents.
- Design Patents
- Utility Patents
In the pharmaceutical industry even the procedure can be branded calling it a process a patent. All countries which have agreed upon the charter with WTO are obliged to value the charter. A couple of 3 ways to sell the trademarked entity within its patent life.
- Receive authorization from the existing patent owner.
- Purchase the patent protection under the law from the owner.
- Bypass the patent, create a different process to develop an entity from the main one patented.
Top 5 Highest Grossing Drugs
- Lipitor by Pfizer
- Plavix by Sanofi and Bristol - Myers
- Humira by AbbVie
- Seretide by GlaxoSmithKline
- Enbrel by Amgen
- Brand: Lipitor
Lipitor was launched by Pfizer in 1997 and it has been the best grossing drug ever. It made sales of around $120 billion until its patent expired in 2011. Now Lipitor sales have declined scheduled to facing competition by general industries.
The above graph shows that Lipitor sales were at its top between 2006 and 2009. After the expiry of the patent in 2011, its sales have noticeably declined.
Lipitor was used to reduce cholesterol in the blood vessels. Due to the birth of junk food in early 2000, the cholesterol rate in a lot of the population increased, due to high sales of Lipitor throughout that period.
Pfizer had a fantastic time during the patent tenure of Lipitor. Even today, Pfizer is the greatest innovator company on the planet.
- Brand: Plavix
Company: Bristol - Myers & Sanofi
The above graph depicts the twelve-monthly sales of Plavix during its patent life. Plavix premiered in 1998 as a joint effort by Sanofi Aventis and Bristol Myers. Plavix patent will expire by 2016. It is the second bestselling medication on the globe after Lipitor.
Plavix can be used to prevent and avoid heart attacks in patients. Plavix has an all-time deal of $ 87 Billion.
- Brand: Humira
Humira premiered by AbbVie in 2003. It is one of the very most best-selling drugs of the 21st century. It was developed for the treatment of ARTHRITIS RHEUMATOID. Its patent continues to be intact. The graph below denotes the sales of Humira.
From 2003, when Humira premiered, its sales have increased exponentially and it still has patent safety. If this tendency continues, it might rival Lipitor.
- Brand: Seretide
Drug: Salmeterol and Fluticasone
Seretide was first launched in Europe in 1999. Seretide was sold along with an inhaler. It had been developed to avoid people from dying from an asthma invasion. The use an inhaler to absorb treatments was a innovative strategy in the later 1990s.
Many common alternatives of Seretide can be purchased in the market today, due to the patent expiry of Seretide. Seretide was one of the highest grossing medicine ever.
The graph below depicts deal habits of Seretide through different years.
- Brand: Enbrel
The graph below depicts the sales routine of Enbrel.
Enbrel premiered in 2005 by Amgen. It was a bio pharmaceutical, only one of its kind. It was developed as an end to arthritis rheumatoid and became one of the most bestselling bio drugs on the globe. The Enbrel sales is on the rise.
Food and Medication Administration
Also known as FDA, this is a federal government body which is accountable for regulating the pharmaceutical industry. No enterprise can sell a product as long as it is not approved by FDA.
FDA spends vast amounts of dollars on trials and approving a medication. The entry hurdle for pharmaceutical market sectors is quite high due to which only quality companies may survive.
FDA holds the to make company withdraw their product from the marketplace. Even generic drugs need an FDA acceptance before they make to the market.
FDA discourages consumers to take dietary supplements which are sold online, as providing something online doesn't require an FDA acceptance. FDA has the final phrase in the whole pharmaceutical industry.
It is clear that the sales of a certain product climb and reach a optimum point during the tenure of its patent life. The sales of the products sharply decline after the expiry of the patent. In other words, the sales of a certain product during its patent life form a abrasive parabola.
The revenues gained by the brands in their patent life reduction in the next order.
Lipitor - $125 Billion
Plavix - $ 87 Billion
Humira - $ 11. 8 Billion and Ongoing, Patent Intact
Seretide - $ 18 Billion
Enbrel - $ 8. 7 Billion and Ongoing, Patent Intact
Having compared the highest grossing products of the pharmaceutical industry, it is currently evident that however the investment in pharmaceutical industry is tremendous, the profits on return is even great. Patent and Intellectual property regulations play an enormous part in regulating the pharmaceutical; industry.
It is preferred that each country should sign the WTO charter and respect intellectual property regulations as their own legal system. Many companies have began growing both innovator and generic drugs to endure the competition. As time passes as pathogens advance, we'll need better and better drugs to guarantee the sustenance of the human race.
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