Biomedical Engineering Reference
In-Depth Information
2.1
Introduction
The pharmaceutical industry is essentially defi ned by innovation. Research on the
forefront of science, the creation of new knowledge bases, the invention of new
medicines, and the improvement of existing drugs constitute the fuel that propels
the fi rms in this industry. The occasional triumph of creating a novel therapy in an
area with no prior treatments counts among the pharmaceutical industry's most
defi ning hallmarks. This is the only industry whose output can make a difference by
affecting the very molecules we are made of.
Modern era medications can infl uence the quality and the duration of human life
in ways that were never possible before. As recently reported by the Pharmaceutical
Research and Manufacturers of America (PhRMA), over the last 25 years prescrip-
tion drugs have successfully improved the wellbeing of arthritis and Alzheimer's
sufferers around the world, and have signifi cantly reduced deaths from heart dis-
ease, several types of cancer, and HIV/AIDS. The death rate for cardiovascular
disease has fallen by a dramatic 28 % between 1997 and 2007, while the average life
expectancy for cancer patients has increased by 3 years since 1980. Most of these
gains are attributable to new medicines. In the USA, since the approval of antiretro-
viral treatments in 1995, the death rate from HIV/AIDS has dropped by more than
75 %. As predicted by IMS Health, innovative treatment options for stroke preven-
tion, arrhythmia, melanoma, multiple sclerosis, breast cancer, prostate cancer, and
hepatitis C are also imminent.
Successful and continuous new drug introductions constitute the source of sus-
tainable competitive advantage for the fi rms in this industry. The sales potential is
gigantic: the global pharmaceutical market was estimated at $837 billion in 2009
and was expected to reach $1.1 trillion by 2015. As reported by the IMS Institute for
Healthcare Informatics (www.imshealth.com), in the USA alone, a total of $307
billion dollars, or $898 per capita, was spent on ethical drugs in 2010, representing
2.1 % of the GDP. The USA is poised to remain the single largest pharmaceutical
market, with four billion dispensed prescriptions and a total revenue of $380 billion
expected by 2015. Some estimates indicate that 46 % of the people living in the
USA take at least one prescription drug.
Not only is the USA the largest market for ethical drugs, but it is also recognized
as the world leader in drug discovery and development, as well as a global hub for
scientifi c and medical research. The pharmaceutical sector is the second largest US
export sector, just behind the aerospace industry. It is also a major employer, esti-
mated to provide jobs to 655,000 people. In total, directly and indirectly, the sector
supports over 3.1 million jobs nationwide. It is also one of the few industries that are
projected to keep adding jobs in the years to come despite the recent slowdown in
the economy (PhRMA and the Bureau of Labor Statistics).
Although innovation is the lifeblood of any industry, the discovery and develop-
ment of new medicines is accompanied by a host of unique challenges, ethical
implications, and social responsibilities. One will be hard pressed to think of another
industry where meticulous research, rigorous testing, and stringent product stan-
dards (or the lack thereof) can have such a profound impact on human wellbeing.
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