Pharmaceutical Industry.

Despite of the economic plunge, pharmaceutical industry is so strong that almost no company is in red. It is because the structure of the pharmaceutical company is different from the others.

One of the most important feature is that medicines is necessary for human beings.
However he do not have money, he needs medicines to live. There are some medicines supplied as generic drugs, but not products alternate new branded drugs.
In respect of Japanese pharma, they struggled exchange rates.

Second feature is that pharmaceutical ingredients are difficult to create but easy to copy. So ingredients can to be protected by patents for several years to decades. Net profit is influenced by not economiy but patents.

Around 2010, many big pharmaceuticals will expire their patents such as Actos, Aricept, Prograf, Cravit, Amlodin and so on. Even in domestic market, their net sales is about to reach $100 billion and big impact to firms is inevitable. In such hard circumstance, they must manage to earn certain amount of profit.

To overcome this tough environment, firms have to accelerate speed to develop new medicines and establish another profit-making source. Novartis is a good example. They have a splendid brand business and generic business. This two profit making center is strong point of that firm. Accroding other companies follows this trend it is better corporate strategy.