1. Sabena Ahmad Iveta Smincakova Dawn Bradbury

2. Political:  Lighter Regulatory Controls (1960s)  Tighter Regulatory Controls on Clinical trials (1970s)  Medicare reforms in 2006 extended drug coverage for ageing population Economic:  Monopsony of the government on drug purchases  Parallel trade (free movement of goods across Single European Market)  USA contribution to global pharmaceutical sales fell from 60 to 40% in years 2002 to 2005  Emerging markets (Latin America, Asian countries e.g. India and China) represented niche markets for pharmaceutical companies  Mergers and Acquisitions – Warner-Lambert (USA) & Pfizer (USA) Social:  Increase in consumer expectations  Ageing populations (four times higher consumption of health care)  Increase in numbers of uninsured people (in USA 46.6m people in 2006)  The DTC advertising (the aim is to inform consumers about latest drugs available in the market, to support branding – the expenditure for DTC advertising exceeded $4.5bn in 2006)

3. Technological:  Usage of high technology for R&D  Five types of industries – Ethical, Generic, Biotech, OTC and Vaccine  Introduction of the ‘blockbusters’ (sales reached $2bn between 1998 and 2003) Legal:  Legislation Setting Fixed Period On Patent Protection (20 years)  Government agency ensuring safety & effectiveness of the new drugs (Food and Drug Administration-FDA, National Institute for Clinical Excellence-NICE)  Issues of fake drugs (the drug market is estimated over 10% globally) Environmental:  There is no information on this factor in the case study

4.  Technology  Innovation  Branding (marketing and advertising)  Ethical issues  Globalisation of the market  Emerging markets  Ageing population  Regulatory law