scholarly journals The search for new drugs: a theory of R&D in the pharmaceutical industry

2017 ◽  
Vol 44 (5) ◽  
pp. 690-726 ◽  
Author(s):  
Massoud Khazabi ◽  
Nguyen Van Quyen
Keyword(s):  
Pharmaceutical Industry ◽  
Dynamic Model ◽  
New Drugs ◽  
Content Type ◽  
Time Dynamic ◽  
Pharmaceutical Firms ◽  
Drug Discovery Program ◽  
Conventional Models ◽  
Patent Design

Purpose The purpose of this paper is to use a dynamic model of optimal patent design and, in the presence of information externalities, to study the evolution of technological progress in the context of a pharmaceutical industry. Design/methodology/approach A theoretical analysis approach is adopted to drive the paper’s findings. Findings Pharmaceutical firms with an active drug discovery program behave strategically in their R&D and in the product markets. It is shown that a firm holding an earlier-expiring patent only chooses to proceed with R&D activates when the patent it holds expires if the expected discounted payoff net of R&D costs yielded by this action is positive. The expected discounted payoff net of R&D costs obtained by this firm is then decreasing in R&D costs, increasing in the cumulative quality discovered in the past R&D activates, and decreasing in the number of past R&D activities, etc. Originality/value The preceding literature on the topic works with only one brand, the brand with the highest quality. As well, the demand is assumed to be completely inelastic. In the conventional models of patent design, the role of competitive fringe firms is discussed implicitly. The model presented in this research is a rigorous continuous in-time dynamic model. It considers several differentiated products. Furthermore, the demand for a brand is taken to be a function of income, its price, and the prices of other brands. The interaction of the fringe firm with other patent-holding firms is also explicitly considered under this framework.

Social capital, knowledge sharing, work meaningfulness and creativity: evidence from the Pakistani pharmaceutical industry

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sabeen Hussain Bhatti ◽  
Dmitriy Vorobyev ◽  
Ramsha Zakariya ◽  
Michael Christofi
Keyword(s):  
Social Capital ◽  
Pharmaceutical Industry ◽  
Knowledge Sharing ◽  
Equation Modeling ◽  
Employee Creativity ◽  
Content Type ◽  
Organizational Social Capital ◽  
Work Meaningfulness ◽  
The Impact

PurposeAs an integral part of intellectual capital (IC), social capital (SC) has been studied as an asset crucial to social relationships among individuals and groups of individuals, which in turn have a significant impact on organizational performance outcomes. This study investigates the impact of organizational social capital (OSC) on employee creativity through the mediation role of knowledge sharing (KS) and moderation of work meaningfulness (WM).Design/methodology/approachThe authors base the analysis on employee-level data gathered via a cross-sectional survey designed for this study. The authors surveyed 217 employees of the pharmaceutical industry in Pakistan. The authors run a confirmatory factor analysis (CFA) and use structural equation modeling (SEM) and Hayes method to test the hypotheses.FindingsThe authors find that OSC positively affects employees’ willingness to share their knowledge with colleagues, which in turn has a positive effect on employee creativity (EC). The results also show that the relationship between social capital and knowledge sharing is moderated by work meaningfulness.Research limitations/implicationsThis study contributes to the IC in general and the SC literature in particular, by providing empirical evidence that shows how creativity could be a focal and pivotal performance outcome of organizational social capital through the moderated mediation roles of work meaningfulness and knowledge sharing.Originality/valueThe authors adopt the concept of SC from the organizational level to the individual level, examining how an individual's perception of organizational capital influences his or her creative behavior and exploring the role of KS and job meaningfulness (JM) in this relationship.

Segmental differences in pharmaceutical industry and its impact on supply chain performance

2019 ◽  
Vol 13 (4) ◽  
pp. 516-540 ◽  
Author(s):  
Saswati Tripathi ◽  
Krishnamachari Rangarajan ◽  
Bijoy Talukder
Keyword(s):  
Supply Chain ◽  
Pharmaceutical Industry ◽  
Business Processes ◽  
Primary Data ◽  
Supply Chain Performance ◽  
Pharmaceutical Supply Chain ◽  
Content Type ◽  
Pharmaceutical Firms ◽  
Capital Productivity ◽  
Financial Metrics

Purpose Pharmaceutical industry involves highly specialized business processes where strong research and development focus along with market differentiation and localization are the deciders of success. This has led to evolution of segments and complexities in supply chain. This paper aims to focus on segmental differences in supply chain performance of Indian Pharmaceutical firms. Design/methodology/approach This paper measures supply chain performance of select segmental players of the pharmaceutical industry using financial metrics and supply chain operations reference (SCOR) key performance indicators through a five-year timeline. The best performance results are compared across the segments to identify unique performance features, if any. The sample results are validated through hypothesis testing methodology. Findings This paper has evidenced that the innovators segment is performing better in cash-to-cash cycle time and supply chain working capital productivity, whereas generics segment is doing better in distribution cost efficiency and total cost to serve aspects. Research limitations/implications The paper is based on historical financial data of firms and measures the firm focused supply chain performance. The results may not be generalized in a global context but serve as a motivator for other researchers to take similar studies. The paper may further be analyzed with primary data of the firms to understand the segmental difference in customer focus supply chain performance measures. Practical implications This paper has brought out important segmental supply chain performance features of the Indian pharmaceutical firms and identified segment-specific problems by integrating SCOR KPIs and financial metrics. Originality/value This paper has integrated both SCOR KPIs and financial metrics to provide unique insights on segmental differences in the performance behavior of pharmaceutical supply chain.

R&D investment behavior of US pharmaceutical firms

2017 ◽  
Vol 9 (2) ◽  
pp. 205-219 ◽  
Author(s):  
Michal Jirásek
Keyword(s):  
Pharmaceutical Industry ◽  
Random Effect ◽  
Investment Behavior ◽  
Theoretical Assumption ◽  
Industry Studies ◽  
Content Type ◽  
Pharmaceutical Firms ◽  
The Us ◽  
Single Industry ◽  
D Investment

Purpose The behavioral theory of the firm (BTOF) has been used to explain the research and development (R&D) investment behavior of firms in numerous multi industry studies. However, their partially contradictory results point to the possible need for a single industry perspective that would reduce heterogeneity of business trends, models and other characteristics. This study aims to test this theoretical assumption within the challenging context of the US pharmaceutical industry. Design/methodology/approach The research uses data from 20 firms, which number among the largest in the US pharmaceutical industry, over the period 2002-2014. These data are analyzed using fixed- and random-effect panel models. Findings The findings generally support the need for a thorough understanding of the industry under study and its specific characteristics. The firms analyzed in this research behave slightly differently from theoretical assumptions, and it is argued that this is caused by industry specific factors. Moreover, the use of two separate aspiration measures – for historical and social aspirations – is supported as it provides more in-depth insight into the firms’ behavior. Originality/value This paper, which is based on research presented at the 4th International Conference on Innovation and Entrepreneurship, represents the first inquiry into the R&D investment behavior of pharmaceutical firms using the BTOF. It also represents an argument for conducting single-industry rather than multi industry studies when using this theory.

Technical efficiency analysis of the Indian drug and pharmaceutical industry

2014 ◽  
Vol 21 (5) ◽  
pp. 734-755 ◽  
Author(s):  
Varun Mahajan ◽  
D.K. Nauriyal ◽  
S.P. Singh
Keyword(s):  
Pharmaceutical Industry ◽  
Efficient Frontier ◽  
Raw Material ◽  
Managerial Performance ◽  
Content Type ◽  
Pharmaceutical Firms ◽  
Target Values ◽  
Usage Cost ◽  
Input Variables ◽  
The Cost

Purpose – The purpose of this paper is to measure technical efficiencies, slacks and input/output targets for 50 large Indian pharmaceutical firms. Design/methodology/approach – The data are collected from Prowess of Centre for Monitoring of Indian Economy for the financial year 2010-2011. This study uses data envelopment analysis approach, taking raw material, salaries and wages, advertisement and marketing and capital usage cost as input variables and net sales revenue as output variable. Findings – The paper finds that out of 50 firms, nine firms were overall technical efficient while 19 firms pure technical efficient and thus defined the efficient frontier. The BCC model identified that the inefficiency is either due to inefficient managerial performance or scale utilization. Further, firms are classified as high, low and middle robust firms on the basis of peer count. The study also analysed the slacks which were found to be significant in regard of some inputs, especially advertisement and marketing. The targets setting results have shown that all the inputs have significant scope for reduction. Practical implications – The empirical results are useful in assessing the relative efficiency of the large Indian drug and pharmaceutical industry (ID&P) firms. The managers and owners can take corrective actions to reduce the cost of operations by optimizing advertising and marketing cost, capital usage cost and salary and wages so as to improve their efficiency. Originality/value – Unlike the previous studies on the efficiency of the ID&P industry, the paper have shown the significance of improvement in managerial performance and scale utilization. In addition to this, excess inputs used in the production process and also possible target values of inputs and outputs are shown in the study. The robustness and stability of efficiency scores is also checked.

scholarly journals Pharmacotherapy and child psychiatry: is there a way forward?

2008 ◽  
Vol 14 (1) ◽  
pp. 10-16 ◽  
Author(s):  
A. James
Keyword(s):  
Pharmaceutical Industry ◽  
Child Psychiatry ◽  
New Drugs ◽  
Pharmaceutical Companies ◽  
Drug Treatments ◽  
New Guidelines ◽  
Post Trial ◽  
Relationship Of ◽  
The Relationship

Recent controversy over the use of serotonin reuptake inhibitors in children and adolescents has focused attention on the role of the pharmaceutical industry in the treatment of young people. Failure of pharmaceutical companies to fully disclose negative outcome trials has led to new guidelines for publication of all trial results. Scrutiny is on the conduct of trials and the relationship of the pharmaceutical industry with prescribing doctors and post-trial surveillance of new drugs. It is argued that drug treatments in child psychiatry are a powerful therapeutic tool but vigilance is needed to ensure that data on the efficacy and safety of drugs are freely available.

scholarly journals Dynamics of the ideal self

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Richard Boyatzis ◽  
Udayan Dhar
Keyword(s):  
Longitudinal Research ◽  
Dynamic Theory ◽  
Future Research ◽  
Ideal Self ◽  
Content Type ◽  
Time Dynamic ◽  
Psychology Literature ◽  
Learning And Change ◽  
The Ideal

PurposeThe ideal self has had a place in management literature in recent years with reference to identity and role change. However, except for a JMD article in 2006, there has been little theorizing on the ideal self, which is often treated as a static construct. The purpose of this article is to update and refine the concept and explain the dynamic nature of the construct.Design/methodology/approachThis conceptual paper is based on a review of the recent management and psychology literature related to the ideal self and its components.FindingsThe authors propose a dynamic theory of the emerging ideal self and delineate how its components evolve over time.Research limitations/implicationsThe ideal self, or one's personal vision, is a major motivator of learning and change and the sustainability of such efforts. The time dynamic theory would encourage and guide longitudinal research using better variables and measures as well as help in conceptualizing the role of socialization, social identity and life/career stages.Practical implicationsWith a better theory of the ideal self, trainers, consultants, coaches and teachers can help people update their deep sense of purpose and the sustaining driver of learning and change the ideal self. It could help people and organizations address a major determinant of engagement.Originality/valueThis theory offers a temporal understanding of how the ideal self can motivate learning and change at different life and career eras, which can help in designing future research on identity-related transitions.

scholarly journals Voluntary intellectual capital disclosure and earnings forecast in Indonesia–Malaysia–Thailand growth triangle's pharmaceuticals sector

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Saarce Elsye Hatane ◽  
Jefferson Clarenzo Diandra ◽  
Josua Tarigan ◽  
Ferry Jie
Keyword(s):  
Pharmaceutical Industry ◽  
Intellectual Capital ◽  
Strategic Alliances ◽  
Stock Exchange ◽  
Financial Analysts ◽  
Earnings Forecast ◽  
Relational Capital ◽  
Content Type ◽  
Earnings Forecasting

PurposeThis study examines the role of intellectual capital disclosure (ICD) on earnings forecasting by analysts in the pharmaceutical industry in emerging countries, particularly in Indonesia, Malaysia and Thailand. This study specifically examines the role of each component of the ICD on analysts' forecasts, which consists of errors of forecasted earnings, the standard deviation of forecasted earnings and analyst recommendations.Design/methodology/approachPanel data analysis is conducted using a sample of 17 companies from pharmaceuticals industries in Indonesia, Malaysia, Thailand – Growth Triangle (IMT-GT), which are listed in the Indonesia Stock Exchange (IDX), Malaysia Stock Exchange (MYX) and Stock Exchange of Thailand (SET) from 2010 to 2017. Secondary data is obtained from Bloomberg and Annual report, where they are being analyzed to measure the ICD and gather the control variables.FindingsThe results indicate that the three components of ICD, namely human capital disclosure (HCD), structural capital disclosure (SCD) and relational capital disclosure (RCD), insignificantly influence average analysts' consensus recommendation and analysts' earnings forecast dispersion. However, the findings show a significant negative influence of relational capital disclosure (RCD) on analysts' earnings forecast error. In contrast, HCD and SCD have an insignificant impact.Practical implicationsTransparency in disclosing activities related to external parties is essential for the pharmaceutical industry. It is found that relational capital disclosure is the only ICD indicator that can strengthen analysts' profit predictions. Transparency about company activities in maintaining customer satisfaction and activities related to strategic alliances with other organizations are two critical things that can accommodate the accuracy of earnings forecasting from analysts in pharmaceutical companies.Originality/valueThis study contributes to ICD-related research by discussing the financial analyst's response to this voluntary disclosure in the pharmaceutical industry, particularly in Indonesia, Malaysia and Thailand. The selected observation period is seven years, starting one year after the global financial crisis. The results showed that the disclosure of IC is not an exciting thing for financial analysts. In forecasting current earnings, financial analysts are more interested in errors than the previous year's estimates.

Heeding a missing link between field managers’ monitoring styles and salespersons’ performance in pharmaceutical selling context

2020 ◽  
Vol 14 (3) ◽  
pp. 425-443
Author(s):  
Faheem Ahmad Khan ◽  
Khuram Shafi ◽  
Amer Rajput
Keyword(s):  
Work Environment ◽  
Design Methodology ◽  
Self Determination Theory ◽  
Self Determination ◽  
Content Type ◽  
Pharmaceutical Sales ◽  
Pharmaceutical Firms ◽  
Healthy Work ◽  
The Relationship

Purpose The purpose of this study is to reveal important insights by examining the relationships of two different field managers’ monitoring styles with performance through salespersons’ engagement. Design/methodology/approach Data was collected from 318 salespersons’ from 20 pharmaceutical firms. Given the performance-driven nature of the pharmaceutical sales profession, field managers seek to adopt the best monitoring style, which can optimize individual’s performance while providing a healthy work environment. Findings The results from multivariate analysis show the evidence of positive relationship between interactional monitoring and salespersons’ engagement. The results also confirm that engagement partially mediates the proposed relationships. Originality/value Authors assimilate and extend research and theory on field managers’ monitoring, salespersons’ performance and salespersons’ engagement to advance a model of salespersons’ reactions to different monitoring styles based on self-determination theory. Perhaps in no other field, the salespersons-field managers’ relationship is as important as in the field of pharmaceutical selling. The study offers insights about the important consequence of two different monitoring styles; also the study is one of the exceptional efforts to provide evidence regarding the role of engagement in the relationship between two different monitoring styles and salespersons’ performance.

Differential effects of interpersonal relationships across functions on product and service innovation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Feng Wang ◽  
Rong Cao ◽  
Siting Wu ◽  
Man Chen
Keyword(s):  
Interpersonal Relationships ◽  
Organizational Innovation ◽  
Market Competition ◽  
Service Innovation ◽  
Content Type ◽  
Differential Effects ◽  
Pharmaceutical Firms ◽  
Functional Relationships ◽  
Service Setting

PurposeThe aim of the study was to investigate the differential effects of interpersonal relationships across functions on product and service innovation, and to examine the moderating role of market competition.Design/methodology/approachThis study was based on a survey of senior and middle managers from 149 pharmaceutical firms in China.FindingsInterpersonal relationships between employees across functions (IR-E) have a stronger impact on product innovation than do interpersonal relationships between managers across functions (IR-M), but IR-M have a stronger impact on service innovation. Market competition strengthens the effects of IR-M on both product and service innovation, but it attenuates the effect of IR-E on service innovation.Originality/valueAlthough the effects of interpersonal relationships across functions are crucial to cross-functional interactions, these effects have received little attention in the literature. By identifying the potential “backfiring” effect of dual-level interpersonal relationships, this study contributes to knowledge of cross-functional relationships. It also deepens understanding of the relationship between cross-functional relationships and organizational innovation, especially in the service setting.

The Pharmaceutical Industry

2018 ◽  
pp. 395-398
Author(s):  
S. Nassir Ghaemi
Keyword(s):  
Pharmaceutical Industry ◽  
Medical Practice ◽  
Public Debate ◽  
The Other ◽  
New Drugs ◽  
Economic Aspects

A textbook on psychopharmacology that seeks to be comprehensive should not avoid addressing important economic aspects of this field. Central to the field of psychopharmacology is the existence and role of the pharmaceutical industry. In recent decades, there has been extensive public debate about the role of the pharmaceutical industry in psychiatric and other medical practice. It would seem worthwhile to acknowledge this debate, and to examine some of the claims and counterclaims made, as well as to suggest some potential avenues for contributing to this debate in a constructive manner. The pharmaceutical industry is central to the development of new drugs, and it has been essential for many new discoveries. However, it also can retard progress by focusing on “me-too” drugs, and on marketing agents for uses that are questionable scientifically and sometimes ethically. The beneficial and harmful impacts of the pharmaceutical industry should be appreciated by practitioners, not just one side or the other.

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