Pharmaceutical Firms Research Articles

Pharmaceutical innovation and access to financial markets.

While prior research shows that pharmaceutical innovation generates measurable benefits for society, over the last 70 years, the innovative activities of pharmaceutical firms have dramatically declined. In this study, we develop and test the hypothesis that to innovate, pharmaceutical firms must have access to capital through well-developed financial markets. Using a broad cross-country sample from 1989 to 2016, we document that financial market development is associated with greater levels of pharmaceutical innovation. To draw stronger causal inferences, and to overcome potential endogeneity issues, we use both instrumental variable and difference-in-difference analysis. Our results suggest that access to capital markets plays a vital role in pharmaceutical innovation.

The Poles in Ireland Against Martial Law in Poland 1981-1983

Aid for Poland during the period of martial law in Poland was organised predominantly by members of the Irish Polish Society, the Irish Catholic Church with the help of the Charitable Commission of the Episcopate of Poland, Polish merchant ships, Irish shipping agents, Irish pharmaceutical and food firms, and generous Irish people. A small Polish community in a short period of time managed to collect in Ireland unbelievable amounts of money and goods. During the 18 months of fundraising, £250,000 in cash and £300,000 worth of food and medicines was shipped to Poland in 20 containers. £50,000 was donated separately by the Irish Government to the Irish Red Cross and the charitable organisation Trocaire. A huge political effort was made to influence the Irish Government to condemn the imposing of martial law in Poland. The Irish Polish Society became a strong and solidified Polish organisation, a united voice for Poles in Ireland and an effective Polish pressure group , supportive for their country of origin and knowing their identity and potentials.

Expanding capacity for vaccines against Covid-19 and future pandemics: a review of economic issues

AbstractWe review economic arguments for using public policy to accelerate vaccine supply during a pandemic. Rapidly vaccinating a large share of the global population helps avoid economic, mortality, and social losses, which in the case of Covid-19 mounted into trillions of dollars. However, pharmaceutical firms are unlikely to have private incentives to invest in vaccine capacity at the socially optimal scale and speed. The socially optimal level of public spending may cause some sticker shock but—as epitomized by the tagline ‘spending billions to save trillions’—is eclipsed by the benefits and can be restrained with the help of careful policy design and advance preparations. Capacity is so valuable during a pandemic that fractional dosing and other measures to stretch available capacity should be explored.

Improving brand performance through environmental reputation: The roles of ethical behaviorand brand satisfaction

Although previous research has shown the benefits of corporate reputation, few studies have directly investigated the effects of environmental reputation in the context of branding. Using insights from signaling and resource-based view theories, we investigate the impact of environmental reputation on brand performance through the mediating mechanism of brand satisfaction. In addition, we examine the moderating impact of ethical behavior on this relationship. Using time-lagged data from 211 industrial buyers from pharmaceutical firms in Ghana, the empirical results show that (1) environmental reputation significantly influences brand satisfaction, (2) ethical behavior moderates the relationship between environmental reputation and brand satisfaction, and (3) brand satisfaction mediates the relationship between environmental reputation and brand performance. The findings contribute to our understanding of environmental reputation's role in B2B branding. Theoretical and practical implications are discussed.

A Review on Green Synthesis of Biologically Active Compounds

Abstract: In recent decades, green synthesis is increasingly being employed for more environmentally friendly processes and constitutes one central theme of research and development in both academic and industrial chemistry. “Green Chemistry” refers to the design of products and processes that imply the reduction or elimination of substances that are harmful to life or the environment. Due to the benefits of green synthesis, such as reduced waste and expense, not just pharmaceutical firms but also other chemical industries have begun to take steps towards it. Green synthesis techniques include using green solvents, catalysts, and other materials. This review article illustrates the utilization of sustainable methods in the synthesis of biologically active compounds via different green methodologies, such as green solvents, green catalyst, green media, etc. We hope that this chapter will provide a quick overview of the different aspects of green chemistry.

The role of pharmaceutical industry in building resilient health system.

This study explores the interrelationship among the current sustainability agenda of the pharmaceutical industry, based on the United Nation sustainable development goals (SDGs), the elements of the Joint External Evaluation (JEE) tool, and the triad components of the One Health approach. A cross-walk exercise was conducted to identify commonalities among SDGs, JEE assessment tool, and One Health approach. An in-depth study of 10 global pharmaceutical firms' corporate sustainability reports and COVID-19 response plan for 2019-2020 was also conducted. The result of the exercise showed the existence of a direct and indirect relationship among the SDGs, elements of JEE assessment tool, and One Health approach. For example, both no poverty (SDG 1) and zero hunger (SDG 2) are linked with food safety targets under the JEE and with human and animal health under the One Health approach. This study adds a new dimension emphasizing the possibility of tailoring the pharmaceutical industry's activities under the sustainability agenda to strengthen global health security while remaining consistent with the One Health approach.

Employee Compensation, Training and Financial Performance during the COVID-19 Pandemic

The purpose of this paper is multi-faceted: first, to analyze the impact of employee compensation and training on firms’ financial performance and the moderating effect of the COVID-19 pandemic on the relationship between employee compensation and financial performance, as well as the relationship between training and financial performance; and second, to analyze the decision-making process pertaining to these two aspects of human resources both prior to and during the COVID-19 pandemic. This study utilizes a sample of 103 Belgian pharmaceutical firms whose financial statements were published in the Bureau Van Djik database between 2012 and 2021. The estimation approach employed was panel data analysis, and the Generalized Method of Moments was used to evaluate the robustness of the system. Whether or not a crisis exists greatly alters the parameters that influence a pharmaceutical company’s business performance. Specifically, the results reveal that the COVID-19 pandemic had a substantial and negative impact on financial performance. Human resource factors, which include employee compensation and training, more accurately explain the company’s performance. The key contribution of such an approach is to illustrate that human resource-related factors have an impact on performance indicators during various types of crises, thereby assisting HR managers in making the best decision during times of crisis. It provides basic guidelines for policymakers to adhere to in order to have a better knowledge of how human capital characteristics might be utilized to improve the performance of their businesses during times of crisis. In addition, this research demonstrates that the firm’s unique characteristics may affect the success of Belgian businesses.

Deregulation on branded and generic drugs price and its effect: a study of Chinese pharmaceutical market

PurposeThis research studies the effect of deregulation of price cap in pharmaceutical market. Price regulation (either through price cap or reference price) is common practice in the pharmaceutical market but recently there are increasing voices calling for deregulation claiming that deregulation could help in lowering drug price and increase revenue of pharmaceutical firms. Upon those callings, Chinese government removed the price cap regulation in June 2015. The author uses this natural policy experiment to study this effect.Design/methodology/approachIn this study, the author applied the interrupted time series analysis (ITSA) on the revenue data of nine categories of both generic and branded drugs in China from March 2011 to August 2016 (the time frame includes both before and after of the initialization of the deregulation) and analyzed the effect of deregulation.FindingsThe results showed that, whether the revenue of drugs will increase or decrease after the deregulation of price cap depends on the level of competition and the change of patterns of the branded and generic drugs are different. When HHI (Herfindahl–Hirschman index) is sufficiently low (competition is high), revenue does not change as a result of deregulation, when HHI is moderately low (moderate competition), revenue from generic drugs will decrease significantly and revenue from branded drugs will increase significantly, and when HHI is high (low competition), revenue from generic drugs will increase significantly and revenue from branded drugs will decrease significantly.Originality/valueThis is a unique study with a unique data set. Most previous studies focus on regulation of drug price and analyze how this may affect drug revenue; however, this is a natural policy experiment of de-regulation. Moreover, previously most studies focus on reference pricing regulation and this is price-cap, a different mechanism that is rarely studied. The originality/value is high of this article.

Effect of Financial Assets on Financial Performance of Pharmaceutical Firms in Nigeria

The study evaluates the effect of financial assets on the financial performance of pharmaceutical firms in Nigeria from 2011-2020 with cash, stock and loans as independent variables and return on assets as dependent variables. Data extracted from the published financial statements of the firms for the period covered were subjected to descriptive analysis and inferential statistics analysis. Diagnostics tests include: Panel Unit Root test, Cointegration test, Hausman test. Panel Regression Analysis result reveals positive but insignificant effect of cash, stocks and loans on return on assets of pharmaceutical firms in Nigeria. The conclusion drawn from the findings is that financial assets contribute very little to the financial performance of pharmaceutical firms in Nigeria. The higher the financial assets of pharmaceutical firms in Nigeria, the better, as the performance would be improved. The study recommends amongst others that pharmaceutical firms should improve on their cash management efficiency. Management of pharmaceutical firms in Nigeria should determine the optimal cash level of the firms to avoid liquidity problems while at the same time avoid ideal funds.

Morphological Change and Internal Growth Factors of Firms in the Korean Pharmaceutical Industry in Recent Decades

The pharmaceutical industry is a regulatory-based high-tech industry that requires long-term R&D investments from product development to market entry. This study investigates how pharmaceutical firms in Korea have grown their production size, changed their morphological structure, and identified the internal factors for sustainable growth in recent decades. First, with time series production data of pharmaceutical firms collected based on the production records of finished drugs, we studied the morphological change of the firms to adapt to environmental change by using general morphological analysis. Second, the pharmaceutical firms were divided into above-average growth firms and non-above-average growth firms, high growth firms, and non-high growth firms, using the decision tree technique to analyze and visualize the determining factors of sustainable growth firms. The general morphological analysis result showed that during the past two decades, in response to undergoing policy and environmental changes, the types of products by pharmaceutical firms have significantly changed from over-the-counter to ethical drugs and have shifted from generic drugs to more R&D-intensive ones. Furthermore, the decision tree technique identified the internal factors of growth and non-growth firms for sustainable growth during the past three decades. The decision tree analysis showed the determining factors for above-average and high-growth firms, such as the firm’s size, age, R&D investment, the over-the-counter drug to ethical drug production ratio, and the choice between chemical and bio drugs. The research findings imply that pharmaceutical firms must combine their strategy-side internal factors with the organization-side internal factors to achieve above-average or high-growth firms over the long term. Some detailed business and policy implications and future research topics are also presented.

Improving the Efficiency of Budgeting in Industrial Enterprise: The case of Russia, Italy, and the Middle East

The study improved budgeting efficiency at industrial enterprises with evidence from Russia, Italy, and the Middle East. In the era of contemporary globalization and technological advancement, a budgeting system holds paramount significance in the effective management of the financial operations and activities, enhancing the overall efficiency of the firm's cash management, mitigating the risk of finance misallocation, and improving the overall financial performance of the enterprise. However, despite its effectiveness, there is a lack of evidence supporting budgeting automation and its efficiency in managing industrial enterprises. More so, limited theoretical and practical relevance is found in the context of Russia, Italy, and the Middle East. This research intended to fill the existing research gap where a qualitative research design was opted. Primary data were collected from the budgeting heads of 3 pharmaceutical firms, each located in Russia, Italy, and Iran. In-depth interviews with 3 budgeting heads identified that the conventional incremental budgeting system needed amendment and replacement with a consolidated and contemporary yet flexible approach to bring radical improvements at the macro-environment level within the industrial enterprise. The key findings led to the development of a model to improve budgeting efficiency, comprising three components: information and analytical/accounting support for budgeting, production accounting information, and a combination of the regulated operation prices. The consolidation of these three components can yield budgeting efficiency. Doi: 10.28991/ESJ-2023-07-01-013 Full Text: PDF

Supply Chain Risk Management: Moroccan Pharmaceutical Sector Case

Pharmaceutical systems are care settings characterized by the wide range of activities and scenarios with which they would be challenged. This causes interactions that result in unexpected scenarios associated with a variety of dangers such as variations in demand, risks associated with supplier relationships, and so on…. As a result, risk management appears to be a major issue for decision-makers. Today supply chain management needs to be dynamic and responsive to create added value, and mitigates these risks by using flexibility strategies to respond to change while remaining competitive. The goal of this research is to look into the supply and demand strategies used by pharmaceutical companies to respond to disruptions and avoid medicine interruptions for consumers. In this thesis the supply chain risk management strategies are basically connected to an empirical study done in 32 Moroccan pharmaceutical enterprises. Following that, the participants’ responses were based on a questionnaire structured through the literature seeks to bring more detailed information about these strategies. Accordingly, the results showed that Moroccan pharmaceutical firms focus on some crucial activities such as supplier selection, flexible control, supplier control, vendor verification, and inventory management to account for supply and demand risk.
 Empirical studies in the field of pharmaceutical risk management are rare. Thus, the goal of this work is address the scarcity of empirical studies in this field by outlining several key risk management strategies used by pharmaceutical supply chain laboratories in the context of Morocco which are putting more resources into these vital strategies. Most of the supply and demand techniques of these firms are found to be proactive .

Pricing and market entry decisions in personalized medicine

In the pharmaceutical industry, personalized medicine is increasingly replacing the traditional blockbuster drug concept. Personalized medicine consists of a targeted drug that is only prescribed if a companion diagnostic test detects the corresponding biomarker. This concept promises improved treatments of various diseases. However, personalized medicine also presents pharmaceutical firms with new challenges resulting from interdependencies in the drug and diagnostic test development processes. Although pharmaceutical firms generally benefit from competition among diagnostic firms, the threat of substitutes from competitors could cause diagnostic firms to step back from new product development in the first place, leading to lost revenues for the pharmaceutical firm. We consider a pharmaceutical firm that may inform two competing differentiated diagnostic firms about a drug under development, such that these firms can develop a corresponding diagnostic test. We show which diagnostic firm the pharmaceutical firm should inform first and how granting early exclusivity to a single diagnostic firm can maximize pharmaceutical profits from personalized medicine.

Influence of Liquidity and Profitability on Profits Growth of Nigerian Pharmaceutical Firms

Abstract: Purpose: This study sought to assess the influence of liquidity ratio and profitability ratio on profit growth of pharmaceutical firms in Nigeria. Method: The researcher employed ex-post facto research strategy with a population of six (6) selected listed pharmaceutical firms in Nigerian stock exchange market. The study used 30 firm yearly observations from the six pharmaceutical firms listed in Nigeria. Results: The results of the study revealed that the current ratio's liquidity ratio and the quick ratio's liquidity ratio had a statistically significant link with profit growth rate. The profit growth rate has no statistically significant link with the profitability ratio of net profit margin and return on asset. Limitations: The discoveries of this study is limited to pharmaceutical firms in Nigeria and may not be adopted elsewhere. Contribution: This study is anticipated to help pharmaceutical companies manage their cash and cash equivalents while also improving the performance of the business. Keywords: 1. Liquidity ratio 2. Profitability ratio 3. net profit margin 4. return on asset 5. profit growth

Impacts of Cyber Security and Supply Chain Risk on Digital Operations: Evidence from the Pharmaceutical Industry

Purpose: The research explored empirical evidence to assess the impact of cyber security and supply chain risk on digital operations in the UAE pharmaceutical industry.
 Methodology/Design/Approach: Based on responses from 243 personnel working at 14 pharmaceutical manufacturing companies in Dubai, data were examined for normality, instrument validity and regression analysis. Cyber security and SC risk on digital operations were explored by applying convenient sampling and descriptive and analytical research design.
 Findings: The findings validated the significant positive association between cyber security and supply chain risk with digital operations.
 Research implications and Limitations: The research model was developed with three variables evaluated only on the pharmaceutical industry in Dubai. Future research should focus on multiple manufacturing industries by covering a larger geographic area.
 Practical implications: When suppliers are highly concentrated, customer-focused organisations with uncertain levels of digital transformation could improve their ability to manage supply chain risk by diversifying their clients. Pharmaceutical firms may require a greater focus on technology-based manufacturing firms to build and maintain customer trust.
 Originality Value: To illustrate how the pharmaceutical industry has explored the relationship between cyber security, supply chain risk and digital operations, the research highlights the significant and convoluted consequences of the relationship model that have not been previously considered.

The Influence of Psychological Empowerment & Turnover Intention Through Career Growth in Pharmaceutical Companies, Lahore, Pakistan

The aim of this study is to examine the impact of psychological empowerment on employee turnover intention with the moderating effect of career growth. A cross sectional survey was used to collect data. A total of 207employees of different pharmaceutical companies in Lahore, were participating through random sampling in this survey. Our finding shows that the two dimensions of psychological empowerment (emotional and relational) have an inverse relationship with intention to quit, whereas (behavioral and cognitive) psychological empowerment is not significantly related to the theory. Career growth shows moderating effect on relational psychological empowerment and turnover intention, although there is no moderating impact found in the remaining dimension of psychological empowerment (cognitive, emotional and behavioral) and turnover intention. Because of the strategic importance of human capital in an organization, it is important for the continuity of the pharmaceutical firms to retain their employees by providing best career growth path to move the employees as well as organization to the next level and save the human capital cost

Modeling Enterprise Flexibility and Competitiveness for Indian Pharmaceutical Firms: A Qualitative Study

Modeling Enterprise Flexibility and Competitiveness for Indian Pharmaceutical Firms: A Qualitative Study

Mode of Collaboration between the Pharmaceutical Firms and Pharmacists: An Empirical Investigation of Social Media Marketing Activities

This study aims to explain the antecedents of B2B customer satisfaction in the pharmaceutical industry of Jordan. The study mainly investigates the direct role of social media marketing on B2B pharmacy staff satisfaction through the lenses of the Kano model, value creation, and transaction efficiency. Purposive sampling was used to collect data from 573 pharmacy staff. Structural equation modelling and regression analysis were used to assess the constructed model’s validity. Results of the study show that the social media marketing construct had both direct and indirect impacts on B2B customer satisfaction. Specifically, the Kano model, value creation, and transaction efficiency’s mediating effect on the constructed model were found to be effective when building integrated marketing strategies for B2B customers in the pharmaceutical industry.

Safety Management and Safety Performance Nexus: Role of Safety Consciousness, Safety Climate, and Responsible Leadership.

Drawing from social system theory, social identity theory, and social exchange theory, this study examines how safety management practices are linked with employee safety performance through safety consciousness and safety climate. Furthermore, responsible leadership is introduced as a boundary condition in the safety consciousness—safety performance and safety climate—safety performance relationships. Data were collected from employees belonging to pharmaceutical firms located in different industrial zones of Lahore, Pakistan. The support is found for full mediation of safety consciousness and safety climate for the safety management and safety performance relationships. Responsible leadership moderates the safety consciousness—safety performance and safety climate—safety performance relationships so that when the safety climate is weak or the safety consciousness is low, a high level of responsible leadership enhances safety performance.

Real options or fallen angels: Examining the complexities of learning from terminated projects

Do organizations learn from innovative failures? Extant research has been mixed. We posit that these disparate findings likely reflect an underlying (and under‐researched) spectrum of failure severity, which is comprised not only by the magnitude of the failure in question but by the frequency with which it occurs. Using fine‐grained, project‐level data, consisting of 33,905 projects in 2496 pharmaceutical firms, we decompose 1251 terminated projects into two types based on their phase of development: early‐ and late‐stage terminations. We use hazard rate modelling and an analysis of abnormal equity returns to assess the likelihood of future failure and the market's reaction to the project termination. Specifically, we are interested in understanding the role that magnitude and frequency of project terminations play in the likelihood and magnitude of future project terminations.