Drug Industry

altitude Pharmaceuticals Corporation Executive Summary Pinnacle Pharmaceuticals had very stable gross sales growth for years and had fabricate a major pseudo in the prescription medicine market. To avoid business risk, Pinnacle mainly sold drugs that argon acquired from other pharmaceuticals rather than actual the drugs by itself. However, with a conservative business strategy, Pinnacle also took a very conservative financial strategy. Although this strategy shut away led Pinnacle to a good status quo, as Pinnacles consultant, to ensure its future competitiveness and to maximize its profit, I recommend Pinnacle change its capital body structure by increasing its debts. Drug Industry Brief In the drug industry, drugs can be categorized into two types--branded drugs and generic drugs. When a pharmaceutical company first markets a drug, it is usually to a depress place a  plain that allows only the pharmaceutical company that highly-developed the drug to sell it, and the exclusivity rights typically last for about 20 years. These are called branded drugs. During its monopoly time, branded drugs are sold in a high margin price to compensate the endueiture in R&D on it.

However, after the patent expired, the formula of the branded drug is not a private anymore, other pharmaceutical companies can use all the components as used in branded drugs to produce generic drug which is equally effective and secure. Since the generic drug seller didnt spend R&D on it, and the market become competitive, the profit margin of generic drugs are much lower than the branded drug. Based on the traits of the two different drug types, pharmaceutical companies that centre on creating branded drugs of their own are more risky in the business model. They have to invest a lot on R&D, and the result could be a blockbuster or a rejection in FDA approbation process; companies of this kind assume higher risk just now enjoy higher profit margin. On the contrary, pharmaceutical companies that focus on drugs that were acquired or licensed... If you want to get a salutary essay, order it on our website: Orderessay

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