Pharmaceutical industry

economic-dictionary

The pharmaceutical industry is a branch of industry that is dedicated to the discovery, development, manufacture, and commercialization of health drugs.

The main purpose of the pharmaceutical industry is to carry out an exhaustive research process that allows the development of medicines. These help the prevention and conservation of human and animal health.

Above all, the pharmaceutical industry has benefited from the enormous advance in the scientific and technological field. As these advance, they have generated an increase in the discovery and development of innovative pharmaceutical products. Innovation makes them act better in the therapeutic process, but at the same time they cause fewer side effects.

Undoubtedly, all the activities of the pharmaceutical industry are governed by a set of laws, regulations and policies specific to the legislation of each country. Since all drug development, approval, production and marketing processes are subject to the legal provisions in force in each country.

Pharmaceutical industry

Regulation in the pharmaceutical industry

The legislation that regulates the pharmaceutical industry is generally different in different countries of the world. But the World Health Organization (WHO) recommends taking into account the following aspects:

1. Authorization

To begin with, the governments of each country must authorize all processes for the production, distribution and promotion of drugs. Likewise, the import and export processes of these products. This to have a strict control in this area.

2. Evaluation

It is also recommended that terms such as safety, level of efficacy and quality aspects of the drugs are evaluated. This prior to being authorized for marketing.

3. Supervision

Obviously, every company that manufactures, imports and markets drugs is required to be inspected and monitored. In order to inspect that these products meet the requirements of the law.

4. Legislation and control

Likewise, there must be a set of laws that regulate the quality of the products that are produced and marketed. Ensuring that the regulations are respected.

5. Surveillance and information

In addition, the institutions in charge must inspect the adverse effects that these drugs may produce. Similarly, they should provide the corresponding information to the general population and to health professionals.

Pharmaceutical industry
Regulation

Characteristics of the pharmaceutical industry

Naturally, the pharmaceutical industry sector is a sector characterized by being capital intensive. This implies that a production structure with sophisticated machinery and technology is required to develop the entire production process.

In effect, this infrastructure allows compliance with the safety and quality parameters that drugs must meet. For this reason, there are also high costs in research and innovation processes.

Pharmaceutical Industry Trends

The main trends observed in this industry are:

  • Processes of strategic alliances between drug-producing countries and multinational companies dedicated to this industry.
  • Greater specialization of work among drug producers.
  • New packaging that extends the useful life of the product.
  • List of the different disciplines to obtain higher quality and more differentiated products.
  • The intellectual property registry considering knowledge as an added value.
  • Use of technology to advance human genome research.

Challenges of the pharmaceutical industry

The most important challenges facing this industry are:

  • The new diseases that are appearing.
  • The long periods of time required to produce new drugs.
  • The high costs faced by companies engaged in this industry.
  • The need to implement new technology in research, development and production processes.
  • Product life cycle stages are shorter.
  • The birth of more competitors.

To conclude, we can say that the pharmaceutical industry is a very important component in the economy in general. Since the products it manufactures are high value-added products. For this reason, to produce them requires high investments in capital goods and highly qualified human resources. So that new drugs are increasingly effective, improving the quality of life and well-being of society.

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