Despite the National Economic Downturn, the Pharmaceutical Industry Remains Strong

By Fulton, Conchetta White | Diversity Employers, February 2002 | Go to article overview

Despite the National Economic Downturn, the Pharmaceutical Industry Remains Strong


Fulton, Conchetta White, Diversity Employers


Through economic upturns, downturns and subsequent recovery, one industry continues to remain economically viable. The pharmaceutical industry in the year 2000 earned a 17 percent return on both revenues and assets, making it the top performing {industry] and the most profitable. According to the Pharmaceutical Research and Manufacturers of America (PhRMA), the drug industry trade group that represents the country's leading research-based pharmaceutical and biotechnology companies, more than $30 billion {was} invested in the development and discovery of new drugs during time year 2001. Pharmaceutical company stocks have continued to show growth regardless of fluctuations in the nation's economy. This record of steady growth may be attributed to several factors; one of which is the aging population. With the aging of the baby-boomers, estimates indicate that by the year 2030, approximately 70 million Americans will be over the age of 65, requiring much heavier reliance on prescription medications for the treatment of chronic health conditions. Another factor is the research and development and subsequent manufacture of new drugs through the biotechnology process.

Several mergers, takeovers and acquisitions occurred in the year 2000. The largest such deal was the $76 billion buyout of SmithKline Beecham by Glaxo Wellcome resulting in the formation of a new company, GlaxoSmithKline. Other mergers included Pfizer with former rival Warner-Lambert in a $116 billion transaction and Monsanto's purchase by Pharmacia for $31 billion. According to fiscal year-end sales, the top ten pharmaceutical companies for the year 2000 included Novartis, Merck, Pfizer, Johnson & Johnson, Bristol-Myers Squibb, Pharmacia, American Home Products, Abbott Laboratories, Eli Lilly, and Schering-Plough, respectively.

The leader of the pack, the Swiss company Novartis, ended the year 2000 with sales totaling $40.8 billion, a feat which garnered the company the coveted title of the world's top pharmaceutical firm. The company was formed in 1996 following the merger of two smaller Swiss-based companies, Sandoz and Ciba and has a diverse array of products that are responsible for its current status. Approximately two-thirds of the company's revenue comes from the sale of the prescription antihypertensives, Diovan and Lotrel and time immunosuppressant, Neoral. The remaining revenue comes from the sale of contact lenses and eye care products through Novartis Ophthalmics and CIBA Vision and its consumer health unit which includes Gerber baby foods, the cough and cold products Tavist and Theraflu, the laxative Ex-lax and the antacid Maalox. With FDA approval of Visudyne[R], the only drug treatment approved for serious myopia and ocular histoplasmosis early this summer, the ophthalmics division is sure to realize hefty profits in the coming years.

The number two drug company with fiscal year-end sales of $40.4 billion was Merck and Co. One-third of the company's sales were for drugs used to treat chronic conditions such as high cholesterol (Mevacor, Zocor), hypertension (Vasotec, Prinivil) and heart failure. With over 69,000 employees, Merck is not only a pharmaceutical company; its management subsidiary, Merck-Medco, accounts for more than half of its sales.

The third company in line with sales totaling $29.6 billion was Pfizer, Inc. The highest selling drug for this company is of course, the well-publicized anti-impotence drug, Viagra. Top sellers for the company also include the prescription drugs Norvasc for treatment of hypertension and the cholesterol-lowering agent, Lipitor with year-end sales totaling $4.1 billion.

Johnson and Johnson ranked four with sales totaling $29 billion, is not only a pharmaceutical company; it's also an array of healthcare businesses. The company is also the largest medical-device maker in the world, which accounts for 35% of total revenues. Johnson and Johnson, unlike most other companies, is in a very unique situation in that they are not facing patent expirations over the next several years. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Despite the National Economic Downturn, the Pharmaceutical Industry Remains Strong
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.