scholarly journals The Innovation-Remuneration Index (IRI). Making pharmaceutical companies report what matters about innovation.

2021 ◽  
Author(s):  
Adam Cohen ◽  
Rebecca Ultee ◽  
Glenn Veldhoven
Keyword(s):  
Pharmaceutical Industry ◽  
Annual Reports ◽  
Pharmaceutical Companies ◽  
Pharmaceutical Firms ◽  
Objective View ◽  
The Cost ◽  
A Company ◽  
What Matters

There is a lack of transparency about the cost of innovation of the pharmaceutical industry even though these costs are claimed to be the major driver for high prices for medicines. This is reflected by annual reports of the major pharmaceutical firms that contain a low number of pages on innovation and its detailed costs, in comparison to pages about remuneration of executives where the detail is excessive. The Innovation/Remuneration Index (IRI) provides an objective view of the transparency priorities of a company and has the potential to shift this focus in favour of transparent and detailed information on the cost of innovation.

scholarly journals Trend Analysis of Cost Components in Select Pharmaceutical Companies

2019 ◽  
Vol 8 (4) ◽  
pp. 2289-2298
Keyword(s):  
Pharmaceutical Industry ◽  
Trend Analysis ◽  
Health Benefits ◽  
Annual Reports ◽  
Pharmaceutical Companies ◽  
Manufacturing Costs ◽  
Operating Profit ◽  
The Future ◽  
The Cost ◽  
Cost Components

The purpose in this paper is to identify the cost components which are vital in consideration towards manufacturing especially in pharmaceutical companies. The manufacturing costs are significant in total expenses in pharmaceutical industry. In this study, a thorough investigation on the cost components and the trend in expenses and operating profit of pharma companies are studied, giving due regard to cost components to have understanding and to find out how they may differ among various types of pharma companies. The data published in the annual reports from 2009 to 2018 of top five pharmaceutical companies based on their annual revenues has been selected for further diagnosis. The analysis reveals that manufacturing costs are different for all the five companies. The study also reveals that there is a considerable indication that the companies are conscious on the much-needed health benefits to the society in the future at an affordable cost

Do innovative activities matter to Indian drug and pharmaceutical firms? An application to export performance

2017 ◽  
Vol 13 (4) ◽  
pp. 193-205
Author(s):  
Shilpi Tyagi ◽  
DK Nauriyal
Keyword(s):  
Pharmaceutical Industry ◽  
Rapid Growth ◽  
Export Performance ◽  
Innovative Activity ◽  
Financial Data ◽  
Pharmaceutical Companies ◽  
Firm Level ◽  
The Real ◽  
Pharmaceutical Firms ◽  
New Evidence

This paper analyzes the R&D and exports profile of Indian drug and pharmaceutical industry during the period 2000–2014. The present paper examines how R&D expenditure and patent impact export performance of the Indian drug and pharmaceutical firms. The study period from 2000 to 2014 has been characterized by a rapid growth in industry’s innovative activity, as part of the strategic shift, induced by the Patents (Amendment) Act, 2005. Using the real financial data for the top 91 publicly listed Indian domestic pharmaceutical companies, the study provides new evidence on firm-level export performance of the Indian drugs and pharmaceutical industry. Generalized Method of Movements estimator developed by Blundell and Bond is applied. The empirical findings of the study reveal that increased R&D intensity, higher patent count and firm’s size are important determinants of firm-level export performance.

scholarly journals Risk Management in the Pharmaceutical Industry in Slovenian Companies

2017 ◽  
Vol 8 (1) ◽  
pp. 42-49 ◽  
Author(s):  
Nina Bucalo ◽  
Borut Jereb
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
Pharmaceutical Industry ◽  
Pharmaceutical Companies ◽  
Regulatory Requirements ◽  
The World ◽  
High Level ◽  
The Cost ◽  
Effective Assessment ◽  
World Supply

Abstract The pharmaceutical industry is one of the most competitive businesses in the world. Supply chain in this industry has been directed towards the production of large batches to avoid lack of supplies, and the achievement of regulatory requirements, at the cost of high level of inventory, higher costs and inventory write-off due to expiration or other reasons. In recent years this industry is facing major changes and challenges such as intense globalization processes, increased competition and innovations in technologies, which has broadened and deepened risks in supply chain. The paper reports the results of the study of the risk in distribution processes of Slovenian pharmaceutical companies, which was conducted among five companies and aims to draw attention to risks that arise in supply chain, to emphasize the importance of their management and to present a model for an effective assessment of risk in companies, developed at the Faculty of Logistics.

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 Financial Performance of Indian Pharmaceutical Companies: Analysis of Leverage and Cost of Capital

2020 ◽  
Vol 1 (1) ◽  
pp. 13-22
Author(s):  
Ahmed Mahdi Abdulkareem
Keyword(s):  
Cost Of Capital ◽  
Investment Decision ◽  
Financial Statements ◽  
Annual Reports ◽  
Pharmaceutical Companies ◽  
Financial Leverage ◽  
Significant Difference ◽  
The Cost ◽  
Operating Leverage ◽  
Practical Implications

Purpose: The main aim of the study is to examine the performance of selected pharmaceutical companies in India based on the Degree Of Operating Leverage, Degree Of Financial Leverage, Degree Of Combined Leverage, and Cost Of Capital. Approach/Methodology/Design: Five pharmaceutical companies were randomly selected, and the annual reports and financial statements of these companies were analyzed. The analysis methods involved Degree Of Operating Leverage, Degree Of Financial Leverage, Degree Of Combined Leverage, and Cost Of Capital. ANOVA test was also employed to test hypotheses. The study is made for five years from 2013-14 to 2017-18. Findings: The results of the study reveal that there is a significant difference in the (means) variables in terms of leverage (operating, finance, and combined) and cost of capital. All leverages are different to each other and the cost of capital. The analysis reveals that Sun Pharma performed well during the study period, whereas Lupin underperformed in all aspects. Practical Implications: The leverage and cost of capital are very important components for deciding whether to invest or not in pharmaceutical companies. The present study highlights the financial performances and growth of the selected pharmaceutical companies. Originality/value: The results of the paper give certain indicators about the performance of the selected companies. These indicators can be used to inform an investment decision.

scholarly journals The Pharmaceutical Firms of Pakistan: An Overview of Multidimensional Performance

2021 ◽  
Vol Volume 4 (Issue 3) ◽  
pp. 251-266
Author(s):  
Dr. Majid Ali ◽  
Dr. Gulam Sarwar ◽  
Dr. Abdul Saboor
Keyword(s):  
Pharmaceutical Industry ◽  
Cost Efficiency ◽  
Allocative Efficiency ◽  
Value Added ◽  
Raw Material ◽  
Factors Affecting ◽  
Pharmaceutical Firms ◽  
Single Output ◽  
Using Data ◽  
The Cost

The pharmaceutical industry of Pakistan is now meeting around 80% of total domestic demand with an annual11% growth rate. But the question arises as to whether the firms produce efficiently? The paper measures cost efficiency of the pharmaceutical industry of Punjab using Data Envelopment Analysis (DEA) for the period of 2014-15. The factors affecting the cost efficiency is also determined by using Tobit method. In first stage, value added is used as single output and number of employs, raw material, and cost of salary are as inputs. The result suggested that the cost efficiency of the pharmaceutical firms is 27.7% which is determined by 46% technical efficiency (TE) and 60.8% allocative efficiency (AE). It means wastage of resources is cost increasing factors in these firms. In the second stage, among the variables i.e. firm’s market share, firm’s Herfindahl-Hirschman Index (HHI) of market concentration, values of assets, energy, Herfindahl-Hirschman Index has strong positive effect on cost efficiency.

scholarly journals Predicting the Reputation of Pharmaceutical Firms with Financing and Geographical Location Data

Mathematics ◽  
2021 ◽  
Vol 9 (16) ◽  
pp. 1893
Author(s):  
Mª Ángeles Alcaide ◽  
Elena de la de la Poza ◽  
Mª Natividad Guadalajara
Keyword(s):  
Logistic Regression ◽  
Pharmaceutical Industry ◽  
Stock Market ◽  
Geographical Location ◽  
Pharmaceutical Companies ◽  
Debt Ratio ◽  
Market Outcomes ◽  
Pharmaceutical Firms ◽  
Location Data ◽  
Stock Market Performance

Reputation is a strategic asset for firms, but has been poorly studied in the pharmaceutical industry, particularly in relation to their financial and stock-market performance. This work aimed to predict the probability of a firm being included in a pharmaceutical reputation index (Merco and PatientView), and the position it occupies, according to its economic–financial and stock-market outcomes and its geographical location. Fifty firms with excellent sales in 2019 and their rankings in 2017–2019 were employed. The methodology followed was logistic regression. Their research and development (R&D) expenditures and dividends strongly influenced them being included in both rankings. Non-Asian pharmaceutical companies were more likely to belong to the two reputation indices than Asian ones, and to occupy the best positions in the Merco ranking. Although no large differences appeared in the firms in both indices, differences were found in the position that pharmaceutical companies occupied in rankings and in the variables that contribute to them occupying these positions. Being in PatientView influenced dividends, sales, and income, while appearing in Merco showed accounting aspects like value in books and debt ratio.

Characteristics of Pharmaceutical Supply Chains

2019 ◽  
pp. 181-205
Author(s):  
Senthil Kumar Ponnusamy ◽  
Anbalagan Saravanan
Keyword(s):  
Supply Chain ◽  
Pharmaceutical Industry ◽  
Supply Chains ◽  
Research Topic ◽  
Pharmaceutical Supply Chain ◽  
Pharmaceutical Firms ◽  
Process Operations ◽  
Pharmaceutical Supply Chains ◽  
The Many ◽  
The Cost

The pharmaceutical supply chain is presently a noteworthy research topic in process operations and administration. A lot of research has been embraced on office area and configuration, stock and circulation arranging, limit and generation arranging, and point-by-point planning. Just a little extent of this work straightforwardly addresses the issues confronted in the pharmaceutical division. The pharmaceutical industry is facing extraordinary difficulties caused by a maturing population, the expanding expense of medicinal services, the priority given by the governments to bring down the cost of medications, boundaries to a passage in developing markets, and the more extensive reception of non-specific medications. These are quite recently a portion of the many difficulties making weight on the overall revenue of pharmaceutical firms. Expanded expenses of R&D and a diminished number of affirmed sedates additionally demonstrates that the lion's share of prescription, which is anything but difficult to find, has just been found.

scholarly journals Network interactions for pharmaceutical market access: findings from an explorative research

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Andrea Runfola ◽  
Simone Guercini ◽  
Matilde Milanesi
Keyword(s):  
Pharmaceutical Industry ◽  
Market Access ◽  
Pharmaceutical Market ◽  
Primary Data ◽  
Pharmaceutical Companies ◽  
Business Network ◽  
Specific Content ◽  
Content Type ◽  
Industrial Marketing ◽  
A Company

Purpose The purpose of this paper is to investigate pharmaceutical market access (MA) and the interaction between the pharmaceutical company and other business and non-business actors (NBAs) involved in the MA of ethical drugs, to identify the main categories of actors, their role for MA and the content of the interaction, adopting an industrial marketing approach. Design/methodology/approach A qualitative interpretivist approach is adopted, with interviews as the primary data collection method: 36 interviews have been conducted with 16 key informants from the pharmaceutical industry. Findings The findings of this study reveal that (i) MA can be seen as a relational-driven activity with specific features owing to the highly regulated nature of the pharmaceutical industry, (ii) there is a multiplicity of business, and NBAs involved in the MA activities with whom pharmaceutical companies interact to acquire knowledge, legitimacy and make MA timely and effective, and (iii) the interaction with each category of actors has specific content. Originality/value This paper advances the debate on the marketing and management of pharmaceutical companies by emphasizing the importance of MA and the need to conceptualize it according to an industrial marketing perspective, revealing the interdependencies among actors for MA and the content of the interaction. It also contributes to the industrial marketing literature that has recently stressed the importance of NBAs as part of the extended business network of a company by identifying different categories of actors, their role in terms of knowledge and legitimization and the features and the trade-off of the extended business network in highly regulated markets.

Some aspects of Financial Statements preparation in pharmaceutical industry

2021 ◽  
pp. 192-198
Author(s):  
Е.Н. Домбровская ◽  
А.Ю. Фурман
Keyword(s):  
Pharmaceutical Industry ◽  
Shelf Life ◽  
Financial Statements ◽  
Pharmaceutical Companies ◽  
Key Features ◽  
The Cost

В статье приведены выводы по результатам анализа отчетности компаний фармацевтической отрасли, подготовленной по МСФО. Рассмотрены некоторые аспекты подготовки отчетности, которые необходимо принимать во внимание компаниям, осуществляющим деятельность по реализации фармацевтической продукции. Среди таких ключевых особенностей рассмотрен учет торговых скидок, их отражение в отчетности, учет запасов, в частности, формирование резервов по сроку годности, резервов под снижение стоимости товаров. Также предложены некоторые схемы по механизму формирования резервов, а также предоставления торговых скидок. This article provides conclusions on the analysis of the IFRS reporting of pharmaceutical companies. This article discloses some aspects of the preparation of financial statements. Among these key features are trade discounts and their reflection in the reporting, inventory accounting, accounting for reserves for the shelf life, for the reduction in the cost of goods sold. Some schemes are proposed for the mechanism of forming reserves, providing trade discounts.

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