India is the biggest supplier of profitable drugs worldwide. Indian pharmaceutical sector provides over 50% of world trade for several vaccines, 40% of generic requirements in the US, and 25% of all medicine in the UK.
India enjoys an important place in the world pharmaceuticals segment. India also has a combination of scientists and engineers to drive the industry towards greater heights. Indian pharmaceutical companies provide over 80% of the antiretroviral drugs worldwide to combat AIDS (Acquired Immune Deficiency Syndrome).
Research done by “Bentley University” stated that big pharmaceutical Drug companies make more benefits than even other big companies in the S&P 500 list. The study shows that the benefits of big pharmacy companies create are closer than knowledge-driven companies in technology. Therefore, it is intact to speak that such companies enjoy more profit margins.
How Big Is The Pharmacy Industry?
Research by the Center for Integration of Science and Industry establishes that the big pharmacy companies can make more money than any other corporate sector. The research goal was to look at the expediency of big pharmaceutical companies that develop profitable drugs in the market. The study started as an outcome of most people having the opinion that profitable drugs are overpriced massively. Between the years 2000 and 2018, pharmaceutical companies had more than $11.5 trillion with a net worth on the upper side of $1.9tr.
The net worth provides the distinction between the profit they earned and the cost of the expense, and therefore, it shows their profitable income. Pharmaceutical companies show just one constituent of the extensive pharmaceutical system. The other competitor in this segment is profit controller, wholesalers, retail pharmacies, and healthcare suppliers. Therefore, it speaks to say that the pharmaceutical industry is one of the largest industries worldwide.
What are the World’s Most Profitable Drugs?
The below discussed are the world’s most profitable drugs exist in the market. Those are as follows:-
- Xarelto is a lingual coagulant drug evolved by a person named Johnson & Johnson and Bayer, which has evolved in sales by over 5% since 2018. It assist in the medication of Coronary Artery Disease, and is extensively famous, both in the US and Europe.
- Opdivo examined a rise in sales by over 36% globally in 2018. Witnessed the world’s first anti-programmed death receptor, this drug was prepared by the person named Bristol Myers Squibb. It assisted in the medication of over 12 various types of cancers and will enjoy patent protection until 2027.
- Eylea Regeneron and Bayer co-developed Eylea for ophthalmic medication.
- Avastin became so famous because of its market infiltration in China, which attend to escalate sales development. A drug found by the person named Roche, Avastin’s total sales, developed by 12% in the international market because it performs well in china.
- Herceptin had got Approval in the year 1998; which is a Roche drug that provides help in treating HER2-positive breast cancer. Sales developed by 1% of the rate in 2018, but the future might be denouncing this drug.
- Enbrel Amgen’s Enbrel developed a total sales surpassing $5bn under the US and Canada territory, and $2.1bn outside North America. Initially availed for the medication of plaque psoriasis and psoriatic arthritis.
- Keytruda provides help in the medication of 11 types of cancer, and total sales exceeded by approximately 47% in the year 2018.
- Revlimid witnessed the development in total sales by over rate of 18% in the year 2018. Due to an addition in the infiltration of market share. The drug helps in the medication of multiple myeloma and mantle cell lymphoma.
- Eliquis is one of the quick-growing franchises of BMS, as it noticed a rate of 32% growth in the total sales in the year 2018. An arrangement between BMS and Pfizer, the drug assist in preventing stroke and systemic embolism.
- Humira found almost 61% of the net sales of Abbvie in the year 2018, and it is their biggest and most benefited product. With total revenue developing by the rate of 7% globally in 2018, the drug that assists in rheumatoid arthritis medication is the company’s main achievement.
How Pharmaceutical Drug Become Most Profitable Pharmaceutical Drug With The Passage Of Time?
The Pharmaceutical Drug, (LIPITOR) prepared; advertised, and vended by PFIZER association is the most benefited drug in the pharmaceutical arena. At the same time, it enjoyed patent protection and the pharmaceutical drug produced over $131 billion in total revenue cost. Lipitor was announced in the year of 1997.
The year that observed the Food and Drug Administration (FDA) allowed drug endorsement, PFIZER used over $272million yearly to advertise the pharmaceutical drug via endorsement and alertness scheduled. They hired a team of over 2000 sales executives to visit doctors continuously to force the drug.
In 1994, Lipitor evolved into the first mega-blockbuster drug worldwide, with yearly generated revenue over passing $ 10billion. And when its patent got expire in year 2011, there was fall down in sales over 71% globally, and the sensation died down. But, when the pharmaceutical drug was famous, it amounted to 25% of Pfizer’s annual revenue, making it the world’s most benefited pharmaceutical drug.
As you can see, the pharmaceutical industry is one of the worlds biggest and earns profit. However, experts disagree that over value profitable drugs has made it difficult for the common people to able have them. The best balance would be for pharmaceutical companies to earn a profit without using the common man. This is what the government attempts to enforce through its patent laws.
Do Pharmaceutical Companies posses Patents for Their Products?
The Indian pharmaceutical segment is an immensely developing, knowledge steered corporations that have been developing in increasing and enslaved. We are presently a third-biggest pharmaceutical drug production nation globally and are developing at a constant rate.
From the past three decades, we have observed the revitalization in the segment that helped in the development of pharmaceutical companies. The Indian corporation’s major competitors are vast, private pharmaceutical companies that have been capable of developing the market.
Patents and the Pharmaceutical Industry
India has twin process and product patents to create it easy for companies to secure their (profitable drugs) products completely when it comes to the pharmaceuticals industry. Later, the deficiency of a uniformed patenting process sabotaged the Indian pharmaceutical industry.
With no patents to secure profitable drugs, companies have invested their slightest cost on research on a large scale. Therefore, rather than investing in Research & Development, many Indian companies observed it more benefited from creating generic drugs.
As we can notice, even in present scenario, the Indian market is heavily populated with generic drug manufacturers. The most profitable drugs of year 2019 in India were generic drugs because of their extensive use.
Pharmaceutical Companies Posses patents for their most profitable drugs
The below-stated are the reasons for pharmaceutical companies holding the patent for their most profitable drugs
- Patents hold the structure of innovation, research, and development and provide security to the product.
- Patents advanced the healthcare industry by forcing companies to search for new drugs.
- Patents granted big pharmaceutical companies to compensate for the expenses done on Research & Development unit.
- Patent assist industry to dominate the market.
Globally, the government’s attempt tough to manage the right branded drugs-generic drugs balance. While branded drugs are needed to provide pharmaceutical companies the cost to invest in Research & Development team, generics form drugs that are not overvalued for the general public. Therefore, attaining the right balance of both is harsh to any nation’s healthcare industry. All well known drugs & the most profitable drugs of 2019 have a patent and they are protecting themselves.
But, once the patent got expired, to discontinue the monopoly of other companies have the right to enter the market and retail the same drug at a lower price. Since holding a patent needs the company to advertise production, other companies can replace this procedure. Since these companies have not spent on Research & Development, their cost of production is much lower.
Therefore, these companies can afford to retail the drug, which does the same job at a much lower cost. Thus, the market would be flooded with low-cost non-brand name versions of the same drug, enabling access to the poor and middle class.
Read our article: How to get Drug License Brochure in India?