Accounting and Financial Reporting in the Pharmaceutical Industry

This article discusses the challenges faced by the pharmaceutical industry, including moderate growth rate, technological impact, policy reforms, and innovation outlook. It also covers the major competitors and emerging technologies related to the industry.

Running Head: ACCOUNTING AND FINANCIAL REPORTING
1
[ACCOUNTINIG AND
FINANCIAL REPORTING]

ACCOUNTING AND FINANCIAL REPORTING 2
Table of Contents
Introduction................................................................................................................................3
Issues common to the industry...................................................................................................3
Moderate growth rate.............................................................................................................3
Technological impact on the industry....................................................................................3
Policy Reforms from health care sector.................................................................................3
Innovation and outlook...........................................................................................................3
Trends that have been identified................................................................................................3
Concerns and strategies..............................................................................................................4
Major competitors......................................................................................................................4
Emerging technologies related to the industry...........................................................................4
References..................................................................................................................................5

ACCOUNTING AND FINANCIAL REPORTING 3
Introduction
The pharmaceutical industry or also referred to as the medical industry is involved in
discovering, developing and producing and marketing the drugs. Generally the
pharmaceutical companies deal in brand medications or generic ones. The companies are
subjected to a wide range of rules and regulations which involve the patents, testing of the
medicines and how to market the drugs.
Issues common to the industry
There are certain factors which are very challenging to the industry which are as
follows
Moderate growth rate
According to a recent analysis conducted by Quintiles IMS it is expected from the
global companies all-round the word to accelerate by 4% to 6% at a compound annual growth
rate during the upcoming five years.
Technological impact on the industry
The development of the drug and its commercialisation is hindered by the
technological advancements and especially in the digital manner. The technology is so
advanced that it times the skill needs to be outsourced from the outside which includes the 3D
printing and the artificial intelligence.
Policy Reforms from health care sector
The United States healthcare is one of the major challenging issues. The future of the
current policies is under the review for the purpose of the replacement of Affordable Care
Act under the consideration of the congressional authority.

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Innovation and outlook
A key issue for the pharmaceutical industry is also a rebound in the industry which
will need new approvals. The approval by the US food and Drug Administration’s Centre for
Drug Evaluation and Research which stopped by 51% as compared to the year 2015.
Trends that have been identified
The significant deals have been made through the mergers and acquisitions of the
major companies there by utilising the resources. For example Gilaed’s collaboration with
Kite Pharma for $11.8 million is one of the biggest mergers. The pharmaceuticals companies
are simply reaping the expensive research and development tasks. Convergence of the sectors
is also another trend which is being played in the market and art from that to keep a balance
between the drug balancing and adherence to the regulations. Also the biosimilar drugs are
being resented at an affordable option and proved to be a hit for the manufacturing sectors
(Idenix Pharmaceuticals, 2018).
Concerns and strategies
The major concerns and the strategies of the industry are manufacturing strategies for
compete and in house strategy for commercial purposes.
The second concern could be of operating under the partnership to assemble the
accurate database which is time consuming and to generate the resources (Patil., 2018).
The risk of non-compliance of the relevant requirements is also one of the features
and the risk of pilferage and quality compliance.

ACCOUNTING AND FINANCIAL REPORTING 5
Major competitors
The major competitors of the pharmaceuticals industry are as follows.
Pfizer
Novartis
Roche
Merck and company (UNCTAD, 2015).
Emerging technologies related to the industry
 Electronic pair Authorisation is now being put into the practice as the new emerging
technology.
 Secondly the medication therapy management has been adopted to prove the services
to take care of the patients (Schueth, Hein & Hull, 2015).
 Clinical programs are established to fulfil the specific needs of the patients
 Some retail pharmacies are approaching the centre fill which requires the initial
capital outlay.

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References
Patil., R. P. (2018). Strategies of Pharmaceutical Industries. Learn about GMP.
Retrieved from
https://learnaboutgmp.com/good-manufacturing-practices-cgmp/outsourcing-
challenges-and-strategies-for-pharmaceutical-manufacturers/
Idenix Pharmaceuticals, (2018). Trends in the pharmaceutical Industry. Retrieved
from http://www.idenix.com/top-5-trends-in-the-pharmaceutical-industry-
2017/
Schueth, A., Hein, W., & Hull, J. (2015). Five technology trends: Changing
pharmacy practices today and tomorrow. Pharmacy times. Retrieved From
https://www.pharmacytimes.com/publications/directions-in-pharmacy/2015/
august2015/five-technology-trends-changing-pharmacy-practice-today-and-
tomorrow
UNCTAD (2015). The role of competition in the pharmaceutical sector and its
benefits for consumer. Retrieved from
http://unctad.org/meetings/en/SessionalDocuments/tdrbpconf8d3_en.pdf