Pharmaceutical Firms Research Articles

Prescriptive Learning and Sustainable Employee Engagement in Selected Pharmaceutical Firms in Nigeria

Prescriptive learning is gradually gaining the attention of various industries in Nigeria, particularly on the issues and concerns surrounding sustainability. The existing literature shows that Nigerian pharmaceutical firms have not provided adequately researched prescriptive learning opportunities and sustainable employee engagement. Thus, this study explores the influence of prescriptive learning and sustainable employee engagement in selected pharmaceutical firms in Nigeria. Five hundred and forty-one (541) respondents were surveyed across all the selected pharmaceutical companies in Nigeria using a stratified and purposive sampling technique. Only four hundred and thirty-four (434) copies of the questionnaire, which represents an 80.2% rate of response. were analysed with Smart PLS 3.0. The results show that competitive differentiation, reflection, research and idea testing significantly influenced employee (cognitive, behavioral and affective) engagements. The study concludes that the adoption of prescriptive learning motivates sustainable employee engagement because employees become emotionally invested in work roles and functions. This study contributes to the strategic learning and development of human resource management practices, especially in the Pharmaceutical industry.

Can the spending of corporate social responsibility be offset? Evidence from pharmaceutical industry

This study aims to investigate whether the costs spent on corporate social responsibility (CSR) can be offset, and identify the inflection point when financial returns from CSR exceed the spending. By using Principal Component Analysis, we developed the Carroll’s CSR model to measure actual CSR spending. Drawing on data of 315 listed pharmaceutical firms from China, the quadratic effect was used to examine the inflection point, and the panel data regression was employed to examine the impact of CSR spending on current and subsequent financial performance. The results show that CSR spending cannot be offset in the short-term. After two years of CSR implementation, ethical-domain and overall CSR spending positively relate to return on assets (ROA), whereas legal-domain CSR spending positively affects ROA after three years of CSR implementation, all justifying that CSR spending can be offset in the long-term. This research contributes to literature by precisely recognizing the time-based inflection point in financial performance arises, which is less discussed in existing CSR studies. The study findings imply that corporate managers need to view CSR spending as capital investment rather than operating costs, and policy makers should mandate institutional arrangements to facilitate CSR.

지식경계 확장이 혁신성과에 미치는 영향: 제휴 유형의 조절효과

This study aims to explore the impacts of international alliance diversity on innovation performance and the moderating effects of the types of alliances (i.e. horizontal or vertical). Based on the research stream that views alliances as a knowledge boundary expansion mechanism, this study suggests that the international alliance diversity has a positive effect on innovation performance, and that the alliance types moderate the relationship between international alliance diversity and innovation performance. The empirical analysis of the Korean pharmaceutical biotechnology firms generally supports our arguments.

Innovation and misconduct in the pharmaceutical industry

The relationships between innovation and firm misconduct have received little attention. We contribute to advancing understanding of misconduct in several ways. First, we find support for previous research on firm misconduct that finds that strain can contribute to unethical firm behavior. Theoretically, our contribution provides evidence in support of the novel idea that strain that results from innovation deficits promotes misconduct. We also contribute to the growing literature on ethical organizational cultures by providing evidence linking weak ethical cultures in the pharmaceutical industry with increased harm to patients. A large body of non-quantitative literature argues that many pharmaceutical firms engage in misconduct in order to promote sales and overcome innovation deficits. We find support for the conclusion that misconduct constitutes a substitute for all measurable categories of drug innovation.

Pharmaceutical pricing dynamics in an internal reference pricing system: evidence from changing drugs' reimbursements.

Reference pricing systems for prescription drugs are usually implemented with the aim of curbing public expenditure with pharmaceuticals, induce drug substitution from branded to generic drugs, and enhance competition. In these systems, patients co-pay the difference between the drug's pharmacy retail price and the health system reimbursement level. Relying on a detailed product-level panel dataset of prescription drugs sold in Portuguese retail pharmacies, from 2016 to 2019, we evaluate pharmaceutical firms' pricing decisions for branded and generic drugs, as well as consumers' reaction to price changes. In particular, we exploit the variation induced by a policy change, which decreased reference prices for 36% of the drug groups in our sample. Results from difference-in-differences analyses show that, despite the reference price decrease, affected firms increased their prices-particularly for off-patent branded products. Such reaction from firms resulted in an increase in the co-payment paid by patients. Such price effects caused a 17% decline on branded drugs' consumption, with significant heterogeneity across therapeutics. Estimates suggest that NHS reimbursement savings were mainly achieved through higher co-payments paid by patients. Additionally, pharmaceutical firms' reaction to the reference price decrease was contrary to what was expected, suggesting underlying competitive dynamics which should be considered prior to policy changes.

Supply Chain Resilience in VUCA World: Towards a Holistic Approach of Quality Assurance and Risk Management

Supply chain management is often associated with disruptions and chaos. This paper intends to explore the factors causing supply chain disruptions and develop a framework for supply chain resilience, thereby highlighting the significance of integrating quality assurance and risk management. With the help of in-depth interviews of management officials involved in the pharmaceutical supply chains in Pakistan, the study finds that a holistic approach towards quality assurance function is indispensable in the supply chain of pharmaceuticals. Drawing on the theoretical framework of chaos theory and complexity theory, the results of this study show that supply chain resilience can be achieved effectively by implementing a proper risk management system identifying the possibilities, and quantifying and mitigating the risks before they emerge. The study also highlights the differences between the supply chain resilience capability of large and small-scale pharmaceutical firms in Pakistan

Corporate governance and R&D investment: does firm size matter?

ABSTRACT This paper seeks to contribute to the burgeoning research on corporate governance and research and development (R&D) by exploring the contingent role of firm size and its crucial role in defining conditions for competitive advantage. Using a generalised method of moments (GMM) estimator and a sample of U.S. publicly traded pharmaceutical firms from 2009 to 2018, we test several hypotheses related to the role of firm size in the relationship between corporate governance and R&D investment. Our findings show the importance of institutional context and point out the configurations of governance practices that lead to high and low levels of R&D investment. We find that the effect of corporate governance on R&D investment is contingent upon firm size. Larger and smaller firms differ in building and employing their strategic decisions. Our results indicate that larger firms facilitate R&D investment than smaller firms, showing that these firms are more prone to seek variation and visibility for accessing better resources. Our findings are relevant for firms aiming to implement strong governance mechanisms to track their R&D activities and for policymakers interested in promoting R&D investment.

Corporate Governance Attributes and Tax Planning of Listed Pharmaceutical Companies in Nigeria

Corporate governance is a means in which businesses are fairly, efficiently, effectively and transparently managed in order to achieve corporate goals through better practices and structures. This study investigates the effects of corporate governance characteristics on tax planning of listed pharmaceutical firms in Nigeria from 2015 to 2020. The study used ex post facto correlational research design and a population of eleven (11) pharmaceutical firms made up the population of the study. The data was collected from the published financial statements of the sampled firms as at 31 December, 2020. The secondary data from the annual reports were analysed using univariate, bivariate and multivariate analysis. The multiple regression results disclosed that board size and board financial expertise positively and insignificantly impact tax savings; board compensation and board meetings negatively and insignificantly affects tax savings while gender diversity negatively and insignificantly influences tax savings. Board financial expertise positively and significantly influences book-tax difference while board size, gender diversity, board compensation and board meetings negatively and insignificantly impact book tax difference. The study concluded that corporate governance characteristics influences tax planning of listed firms in Nigeria and hence recommended amongst others that shareholders must preserve a structure to guarantee that the board is given financial incentives for effective tax planning that will assist to solve the agency problem where management exploits shareholders through tax planning practices.

Optimal subscription models to pay for antibiotics

Novel subscription payment schemes are one of the approaches being explored to tackle the threat of antimicrobial resistance. Under these schemes, some or all of the payment is made via a fixed “subscription” payment, which provides a funder unlimited access to the treatment for a specific duration, rather than relying purely on a price per pill. Subscription-based schemes guarantee pharmaceutical firms income that incentivises investment in developing new antibiotics, and can promote responsible stewardship. From the pharmaceutical perspective, revenue is disassociated from sales, removing benefits from push marketing strategies. We investigate this from the funder perspective, and consider that the funder plays a key role in promoting responsible antibiotic stewardship by choosing the price per pill for providers such that this encourages appropriate antibiotic use. This choice determines the payment structure, and we investigate the impact of this choice through the lens of social welfare. We present a mathematical model of subscription payment schemes, explicitly featuring fixed and volume-based payment components for a given treatment price. Total welfare returned at a societal level is then estimated (incorporating financial costs and monetised benefits). We consider a practical application of the model to development of novel antibiotic treatment for Gonorrhoea, and examine the optimal treatment price under different parameterisations. Specifically, we analyse two contrasting scenarios - one where a new antibiotic's prioritised role is reducing transmission, and one where a more pressing requirement is conserving the antibiotic as an effective last defence. Critically, this analysis demonstrates that effective roll-out of a subscription payment scheme for a new antibiotic requires a comprehensive assessment of the benefits gained from treatment. We discuss the insights this work presents on the nature of these payment schemes, and how these insights can enable decision-makers to take the first steps in determining effective structuring of subscription payment schemes.

The impact of home and host country institutional development on multinationals’ R&D intensity

This empirical article examines how the institutional development of the home country and host countries in which multinational enterprises (MNEs) are embedded can drive MNEs’ research and development (R&D) intensity. In doing so, this study analyzes 967 firm-year observations of 234 pharmaceutical firms from 30 developed and less developed countries in the period from 2010 to 2017. We find empirical support for internationalization toward developed countries as a driver of R&D intensity at the firm level. Furthermore, we find that this positive effect is stronger for MNEs from less institutionally developed home countries. The results can help managers, researchers, and policymakers to better understand the innovation process in R&D-intensive industries. JEL CLASSIFICATION: M16, O32

Formulation and Characterization of Rutin Loaded Chitosan Nanoparticles

New drug delivery technologies are transforming drug discovery and development, as well as establishing research and development-focused pharmaceutical firms that are accelerating global progress. The bioactive rutin molecule is used in a wide range of food and medicinal goods. Its limited bioavailability and poor water solubility are major issues. Rutin is a polyphenolic natural compound with antibacterial, anticancer, antioxidant, chemopreventive, and anti-inflammatory activities. However, no research has been published to yet to improve its bioavailability and efficacy. As a result, an attempt was made in this study to load rutin into a nanoparticlulate system in order to improve its bioavailability and efficacy. Six formulations (F1-F6) of nanoparticles were prepared by solvent evaporation technique and were evaluated for particle size and shape using Zeta Sizer, Scanning Electron Microscopy (SEM) and Fourier Transform Infra-Red (FT-IR) Spectroscopy. The optimized formulation was further subjected to in vitro evaluation. Practical percent yield, drug entrapment efficiency and In vitro drug release were evaluated. Out of various formulations F1 have shown best results in particle size 80.71 (1-100 nm), particle shape (spherical nanoparticles with a smoothed surface), average size distribution (105.0), zeta potential (-20.6) percentage yield (70.83), drug entrapment efficiency (83.6%) and drug loading (95%). Pure rutin showed incomplete dissolution of 47.69% in 330 min while Rutin loaded nanoparticles gave 94.75% release in 330 min. It is obvious from the foregoing that rutin chitosan nanoparticles were used as a novel drug delivery technology to improve therapeutic efficacy and sustained release features while overcoming issues such as poor solubility and limited bioavailability.

Can trust moderate the relationship between supplier–buyer relationship and supply chain sustainability?

PurposeThis study aims to assess the effect of supplier–buyer association on supply chain sustainability using the pharmaceutical industry in Ghana as a case study.Design/methodology/approachThe study used a quantitative research approach. The study design was a cross-sectional survey design. The unit of analysis for the study was top-level managers of pharmaceutical companies in Ghana. By the use of the purposive and convenience sampling techniques, 90 respondents from pharmaceutical firms in Ghana were included. The study used descriptive statistics, t-test and regression tools in the data analysis.FindingsIt was discovered that trust mediates positively the relationship between supplier–buyer relationship and supply chain sustainability. Moreover, the study found that supplier–buyer relationship (SBR) has a significant and positive impact on supply chain sustainability.Practical implicationsThe study concluded that SBR is the foundation upon which effective supply chain and supply chain sustainability are established.Originality/valueThis paper provides researchers with a contemporary perspective toward understanding the relationship between SBR and supply chain sustainability and the mediating role of trust.

A Big Data strategy to reinforce self-sustainability for pharmaceutical companies in the digital transformation era: A case study of Egyptian pharmaceutical companies

The Big Data-driven economy has emerged, and data is known as the new petroleum of the current century. Big Data (BD) analytics can play an essential role in building a self-sustainable competitive advantage for the pharmaceutical industry by feeding pharmaceutical drug corporations with different directions, patterns, and behaviours of the health’s ecosystem. Unfortunately, many Egyptian local pharmaceutical companies use obsolete strategies to create a standalone competitive advantage. Most of these firms face numerous challenges in adopting a smart strategy based on BD analytics. This research provides an overview of the barriers that hinder the full utilization of BD analytics in local Egyptian pharmaceutical firms. These obstacles are categorized into four groups: culture, strategies, technology and processes. A descriptive analysis methodology was applied to create an in-depth understanding of BD challenges. The qualitative study consists of two approaches: case-analysis study and semi-structured interviews. Furthermore, we suggest a comprehensive strategy that includes five phases (Analysis, Benchmark, Design, Implement, and Evaluate). This strategy is an advanced adaptation of the digital transformation maturity model and can be used as a guideline to effectively adopt and utilize the BD analytics approach.

An examination of the individual and interaction effect of absorptive capacity and corporate political activity on product innovation

ABSTRACT To improve their innovative performance in the emerging economy, firms develop absorptive capacity and corporate political activity to gain useful resources and maintain a beneficial environment. As the limited resources of firms and resource-consuming nature of absorptive capacity and corporate political activity, firms need to distribute resources wisely. However, the comparaion of their individual effect and the investigation of their interaction effect are limited. To fill up the research gap, based on the resource-based view, this study examined (1) the heterogeneous individual effect, and (2) the interaction effect of absorptive capacity and corporate political activity on innovation performance. Based on 165 pharmaceutical firms, this study found that the positive effect of absorptive capacity is stronger than that of corporate political activity on incremental innovation, while the positive effect of corporate political activity is stronger than the absorptive capacity on radical innovation. What’s more, the interaction effect is negatively related to radical innovation. These results shed light on how to conduct different innovations better by managing internal and external sources wisely, which extends the research of resource based innovation and enriches the study of the interaction effect of absorptive capacity and political strategy. This research also help managers to manage different resource sources based on their innovation strategy.

DOES ACQUISITIONS IMPACT THE FIRM’S TECHNOLOGICAL DEVELOPMENT? A STUDY USING KNOWLEDGE BASE IN THE PHARMACEUTICAL INDUSTRY

ABSTRACT This article focuses on the acquisition of small pharmaceutical firms (SPHF) by large pharmaceutical firms (LPHF). LPHFs enlarge their own knowledge base by incorporating their target’s knowledge base. Given this scenario we pose the question: Is it possible to link knowledge acquired via an acquisition to technological development? In order to answer this question we developed an approach that allows the impact of a target’s knowledge base to be observed in the acquirer’s own knowledge base. This objective was achieved qualitatively, based on a sample of 8 LPHFs and 51 SPHFs. Our main conclusions were: (i) the dissemination of biotechnologies is boosted by acquisition; (ii) acquisitions have allowed the knowledge bases of LPHFs to assimilate their target’s knowledge bases; (iii) the target’s patents offer a great potential for developing technologies that are already dominated by the LPHF; and (iv) the “incorporation” of scientists from target companies allows LPHFs to internalize research lines. Our main contribution is to link knowledge base characteristics to potential directions taken in the technological development process.

For the Common Good: Philosophical Foundations of Research Ethics by Alex John London

Written in response to what he recognizes as the problematic philosophical underpinnings of "orthodox research ethics," Alex John London's For the Common Good reimagines what is called for in any effort to create a better system of oversight and regulation in biomedical research. London weaves a common thread - justice - through this historical and critical account of the practice of research ethics and its organization of stakeholders, institutions and regulations. By introducing the idea of "a common good" London reframes the narrative and responsibilities of the research ethics field to demonstrate that scientific research and regard for the rights and welfare of individuals are not mutually exclusive. This impressive monograph encourages its readers to push past the limitations of traditional research ethics to consider the context in which the discipline is embedded. That is, rather than settling for analysis at the level of researchers and research participants alone, London encourages us to expand our inquiry to encompass a wider array of stakeholders who co-labor in the social undertaking of biomedical knowledge production. London accomplishes the difficult task of upstream analysis - turning his attention to the conditions and assumptions which create ethical dilemmas rather than applying a retrospective ethical salve to injuries near-guaranteed by a broken system. As opposed to the limited domain of orthodox research ethics (researchers, participants, and the institutional bodies which regulate interaction between the two) London also considers the role and contributions of affected communities, pharmaceutical firms, philanthropic organizations, and journal editors among others.

Who Pays for Gifts to Physicians? Heterogeneous Effects of Industry Payments on Drug Costs

This paper estimates the impact of gifts - monetary or in-kind payments - from pharmaceutical firms on physicians' prescription decisions and drug costs in the US. Using exhaustive micro data on prescriptions for anti-diabetic drugs from Medicare Part D, we find that payments cause physicians to prescribe more brand drugs. On average, for every dollar spent, payments generate a $6 increase in drug costs. We then estimate heterogeneous causal effects via machine-learning methods. We find large heterogeneity in responses to payments across physicians. Differences are predominantly explained by the insurance coverage of patients: physicians prescribe more brand drugs in response to payments when patients benefit from subsidies that reduce out-of-pocket drug costs. Finally, we estimate that a gift ban would reduce drug costs to treat diabetes by 3%.

Disruption in Supply Chain due to Covid-19 in Jordanian Economy

Disruption in Supply Chain due to Covid-19 in Jordanian Economy

Big Pharma and Monopoly Capitalism: A Long-Term View

Are IPRs institutions meant to foster innovative activities or conversely to secure appropriation and profitability? Taking stock of a long-term empirical evidence on the pharmaceutical sector in the US, we can hardly support IPRs intended as an innovation rewarding institution. According to our analysis, pharma patents have constituted legal barriers to protect intellectual monopolies rather than an incentive and a reward to innovative efforts. Patenting strategies appear to be quite aggressive in extending knowledge borders and enlarging the space protected from the possibility of infringements. This is also witnessed by the fact that patent applications are very skewed in the covered trade names and patent thickness expands over time. Conversely, the number of patents protecting new drugs approved by the FDA which draw upon government-sponsored research - as such a mark for quality - falls. Firm-level analysis on profitability confirms strong correlation, restricted to listed pharmaceutical firms, between patent portfolio and profit margins.

Do cross border acquisitions increase shareholder's wealth The case of Indian pharmaceutical firms

Indian pharmaceutical firms have been on an acquisition spree and witnessed around 216 cross border acquisition deals worth more than $11,350 million during January 2005 to March 2019.1 The primary motive of this study is to analyse the impact of cross border acquisition (CBA) announcements on the short-run abnormal returns to Indian acquirers in the pharmaceutical sector. This study applied event study methodology and analysed 55 CBAs that happened in 24 foreign markets by 27 Indian pharmaceutical firms, from the year 2005 to 2018. Both parametric and non-parametric tests were applied to examine the robustness of abnormal returns. It was found that the announcements of foreign acquisitions by Indian pharmaceutical firms have created wealth gains for the shareholders. Further, there is strong evidence that Indian pharmaceutical firms experience significant positive abnormal returns surrounding the acquisition announcements of target firms in the developed markets and in contrast experienced insignificant negative abnormal returns when the acquired target firms were based in developing markets.