Pharmaceutical Company Innovation Impact-Free-Samples for Students

Question: Discuss about the Case of Australian Pharmaceuticals. Answer Introduction The growth and development of a firm depends on the products variance and what they can innovate with respect to the ongoing trends of the industry. This text is based on the reviews of authors arguments regarding the Australian pharmaceutical companies. This also analyses the favourable and gaps in government policies, which either helps or acts as a barrier in innovation in the firm (McCann Ortega-Argils, 2013). The technological innovation has become crucial part of pharmacy industry is operating in regional or on international market (Mudambi Swift, 2012).This idea is also simultaneously important as analyzing whether pharmaceutical firms' experience in their technological and product-market domains confer early advantages to their new product offerings, while leading to higher initial sales levels (Henshall, 2014). It has been found that a rising number of biologics in the channel of pharmacy companies with unbeaten products previously in the market although, small molecular e ntities have principally conquered drug innovation. Research aim and objectives This research is on the impact of policy framework and the government policies influence in technological innovation in pharmaceutical industries of Australia. This research also explores on the advantage and disadvantages that the country had to face regarding the regulations in innovation. In spite of Australias relatively undersized population, Australians consume huge amounts of medicines. The performance of the pharmaceutical industry has been outstanding the years before 2008 cause of financial crisis. However, how the multinationals have struggled and used the economies scale to face the opportunity that they have (Jungmittag, Reger Reiss, 2013). The paper suggests a methodology for measuring the degree of openness in companies' innovation processes through the analysis of annual reports. Aim - The purpose of this piece of writing is to discuss the mentioned areas by reflecting on the Session on RD in Drug Innovation during the Bio economy(Henshall, 2014). Literature review Pharmaceutical industry in Australia knowledge based industry and there is extensive scope of using innovative technologies. The field research in biotechnology and bioinformatics is vast and the new nanotechnologies have become very essential to use to further explore the research and development strategies. In global context, this industry rise is supposed to be stagnant and development of Innovative drugs and generic medicine usage is on rise(Mudambi Swift, 2012). Developing new drugs are expensive. However, with help of government and capitalists eager to invest on the product development, these problems can have solutions in future. The funding part of the RD is allocated and inspected by government health and research centres (Lee, Hwang Choi, 2012). Like The National Health and Medical Research Council (NHMRC), Cooperative Research Centres (CRCs), The Australian Research Council (ARC), The Commonwealth Scientific and Industrial Research Organisation (CSIRO), Cooperative Rese arch Centers (CRCs), eager Universities and local hospitals and nursing homes (www.biogrid.org.au, 2017). Government also provides the Tax compensation and incentive programs in RD. Manufacturing industry in this medical field have outperform other industries in Australia (Mudambi Swift, 2012). The manufacturing industry accounts for about 10% of completely manufacturing industry in export in Australia. This industry is a technologically intensive and have exported around 3.89 billion dollar in the years 2012-2013. Moreover, it spent around $404 million on product manufacturing and RD. The value comes to 2.91 billion dollar as of 2012. Alpha farm in Australia is among the highest contributor to PBS (pharmaceutical benefit scheme in the year 2012 (Cappelen, Raknerud Rybalka, 2012). They are one among the highest market shareholder too. This industrys manufacturing and export performance has been impressive and that demonstrates the fundamental feature transformation that has occurr ed also within the pharmaceuticals manufacturing industry, from one focused principal on supply-demand to domestic market, to another focused on servicing international markets (Lee, Hwang Choi, 2012). The industry has employed about 16,500 people and used up around $404 million on pharmaceutical manufacturing RD in 2011?12. Sales of complementary medicines are worth around $2 billion a year. IBIS World has estimated that more than half of all pharmaceuticals manufacturers revenue is now derived from exports, higher than a decade ago(www.biogrid.org.au, 2017). There have been difficulties in this industry and that have affected the innovation. The certain expiries related patent problems have arise due to non-consolidation and consequence of rationalisation. If at any crucial moment, the company is unable to secure the needed investment exports percentage have shown decline in the average level(Mudambi Swift, 2012). Economies of scale have provided the competitive advantage of to the country for long and have given desirable outcome to the export market exchange Australia. Business Expenditure in this field of RD department, BERD for the pharmaceuticals industry significantly increased between 1998 and 2006, such that nearly by 200607, annual industry investment in RD had reached $860million (Jungmittag, Reger Reiss, 2013). Early stage innovation is strongly supported by the Australian government. This country has also ranked in the top ten of OECD(www.biogrid.org.au, 2017). The help has increased in the following years and support was administered by the NHMRC and planned to raise the capital by $750 million in two years 2010-2012(Sears and Hoetker, 2012). Clinical research development have also ranked in the highest position in the revolutionary drugs like Gardasil (cervical cancer vaccine), Relenza (influenza antiviral) and Naglazyme (treatment for rare genetic disease Mucopolysaccharidosis type six). Australia is known to be congruence towards early sta ge development of medicines not only value adding by packaging business. There are also different reasons for being able to use this as Australia has been reported to have high quality clinical trials. Secondly, Australia have been recognised several times to have excellent reputation in the field research (Sears and Hoetker, 2012). There is also advantage of favourable facilities. The global trends and financial crisis have affected and buffeted this industry. GlaxoSmithKline is one of the most reputed Multinational Corporation in the global market including Australia. The previous government programs had some scheme that has been beneficial for the company. However, they have been backed up by biotechnological innovation process. The rapid rate of patent expiry have matched the competitive advantage that has significant growth in the generic drugs sector (Michelino, Lambarti Caputo, 2014). The paradigm shift to out-sourcing the innovation facilities and early stage RD in the discussing countries has resulted in expansion of the biotechnology division, but this has been offset by cost reduction resulting in worldwide job losses in the originator sector (Besi McCormick, 2015). Considerably, the distribution of the Australian pharmaceuticals manufacturing industry, occupied in the higher value accumulation segments of the supply chain has declined throughout the past decade, from approximately 80per cent formulation to just 45 per cent, with the consideration of balance replaced by packaging activities (Lee, Hwang Choi, 2012). Therapeutic drugs ma nufacturer and sell under the TGA act is a different business unit of Australian government. The strategic Framework of the competitors is in sync with the increment in results they are getting in the over the last 10 years. In this groups direction paper there is also a global impact discussed as the sustainability of the Multinational pharmaceuticals depends most of that in outsourcing (Lehoux et al. 2014). The global working environment is challenging for this particular industry manufacturing RD and commercialization of activity. Though Australia has certain strengths regarding the world-class medical research base, strong clinical research centers, specialization in manufacturing and strong export business performance, value addition business, mature biotechnological sector and cost competitiveness to North America and European countries (McCann Ortega-Argils, 2013). They have also a strong backup of government laws and certainty in legal investments from benefit sharing schem es. The ageing population is in need of therapies that Australian therapy businesses has capabilities to act on (Besi McCormick, 2015). Growing interest on personalized medicine industry technological. The Factor f scheme operating in the country have adverse effects on PBS on innovation and manufacturing industry on Australian pharmaceutical industry. Later support scheme have supported portfolio of activities (Mahroum Al-Saleh, 2013). Research questions The research questions are for further analysis of the topic. After discussing the arguments of the authors in the articles it can be said that there is certainly some influence of global manufacturing of clinical, generic, therapeutic drugs in Australia. There is also a factor government policy acting as stimulation for the batch. Is the impact of policy framework and the government policies influence in technological innovation in pharmaceutical industries of Australia? If the relation between global pharmaceutical industrys performance positively correlated to that of Australias? Is the countrys pharmaceutical industry facing any problem? Is there any degree of open innovation working for this country? Conclusion Therefore, from the above analysis of the arguments of the author it can be concluded that there is certain advantage of having favourable regulations in the Pharmaceutical industries strategic competitive advantage. Australian government has made sure the support is firm in the early stages of drug development policies. There is also a maturity in the biotechnological innovation planning. The Bio informatics is also supportive. Further, there is also different schemes and acts that helps the business environment to grow. The advantage of having a favourable policy framework as a stimulation, which helps the innovation. References: Global pharma market grew to $712billion last year, Scrip, no.3357, 30April2008, https://www.biogrid.org.au viewed December 2008 . Cappelen, ., Raknerud, A., Rybalka, M. (2012). The effects of RD tax credits on patenting and innovations.Research Policy,41(2), 334-345. de Besi, M., McCormick, K. (2015). Towards a bioeconomy in Europe: National, regional and industrial strategies.Sustainability,7(8), 10461-10478. Henshall, C., Sansom, L., Eichler, H. (2014). Understanding the Role and Evidence Expectations of Health Technology Assessment and Coverage/Payer Bodies What Are They Looking for, and How and Why Does This Differ From What Regulators Require?,Therapeutic Innovation and Regulatory Science, 48(3): 341-346 Jungmittag, A., Reger, G., Reiss, T. (Eds.). (2013).Changing innovation in the pharmaceutical industry: globalization and new ways of drug development. Springer Science Business Media. Lee, S. M., Hwang, T., Choi, D. (2012). Open innovation in the public sector of leading countries. Management Decision,50(1), 147-162. Lehoux, P., Daudelin, G., Williams-Jones, B., Denis, J. L., Longo, C. (2014). How do business model and health technology design influence each other? Insights from a longitudinal case study of three academic spin-offs.Research Policy,43(6), 1025-1038. Mahroum, S., Al-Saleh, Y. (2013). Towards a functional framework for measuring national innovation efficacy.Technovation,33(10), 320-332. McCann, P., Ortega-Argils, R. (2013). Modern regional innovation policy.Cambridge Journal of Regions, Economy and Society,6(2), 187-216. Michelino, F., Lambarti, E., Caputo, M. (2014). Measuring Open Innovation in The Bio-Pharmaceutical Industry, Creativity and Innovation Management, 24(1): 1-25 Mudambi, R., Swift, T. (2012). Multinational enterprises and the geographical clustering of innovation.Industry and Innovation,19(1), 1-21. Sears, J and Hoetker, G. (2012). Technological Overlap, Technological Capabilities, And Resource Recombination in Technological Acquisitions, Strategic Management Journal, 35:48-67