Comprehensive PESTLE Analysis of Australian Pharma Industry Report

This report provides a PESTLE analysis of the pharmaceutical industry in Australia, examining the various external factors influencing its operations and performance. The analysis begins with an introduction to the industry's market conditions, highlighting the competitive landscape and key players. The economic factors are explored in detail, including government spending, import reliance, aging population, and technological advancements. The report also addresses ethical considerations and provides recommendations for the industry. It concludes by summarizing the major threats to the industry, such as the economic burden of external investment and outsourcing. The analysis refers to various research papers and studies to support its findings and arguments. The study emphasizes the importance of understanding and addressing these factors for the industry's sustainability and growth.

PESTLE ANALYSIS OF
PHARMACEUTICAL INDUSTRY IN
AUSTRALIA

INTRODUCTION
 The market of the
pharmaceutical
industry is one of
biggest markets in
the world and it has
its own condition.
 The issue of those
factors can greatly
influence the industry
in a great manner
(Fabri et al. 2017).

CONTINUED…
 In some recent times, it
is reported that the
competitive nature of
marketplace in Australia
has also affected the
pharmaceutical industry.
 The flourishing of the
pharmaceutical industry
has affected the health
care industry in the
country (Vitry, A. and
Roughead 2014).

CONDITION OF THE INDUSTRY IN RECENT TIME
 The issue of competition on
the market of the
pharmaceutical industry has
enhanced greatly.
 The companies that have
largest stocks in the market
of Australian
pharmaceutical industry are
Pfizer Australia Holdings Pty
Limited, Aspen Asia Pacific
Pty Ltd, GlaxoSmithKline
Holdings Pty Ltd and
AstraZeneca Holdings Pty
Ltd (Grundy, et. al, 2016).

CONTINUED…
 America is the largest
pharmaceutical industry of
the world along with the
value of 339.694 million
dollars and after that
dawdled by China as well
as Japan (Malik, et. al,
2018).
 The important
Pharmaceutical
competitors in Australia are
Symbion Health, Sigma
Pharmaceuticals along with
Alphapharm.

THE PESTEL ANALYSIS OF THE INDUSTRY
ECONOMIC FACTOR
In the year of 2015-16 only
the company named,
Alphapharm Pty Ltd
supplied only 4 per cent of
the total requirement of
the medicine in the
country and almost 80 per
cent of government
spending are used to buy
medicines from the foreign
countries specifically US
(Karnon, Edney and Afzali
2018).

ECONOMIC FACTOR
 regulations on the
pharmaceutical companies in
terms of the financial aspect,
causes more tough condition
in the country along with the
other countries of the world
(Gray, Harymawan and
Nowland 2016).
 The aspect economy of the
country towards the
pharmaceutical industry is
one of the major weaknesses
of the pharmaceutical
industry in the country.

ECONOMIC FACTOR
 In Australia the percentage
of aging population,
patients of obesity,
patients of obesity are
enhancing day by day
 However, it also poses a
threat to the industry as
enhanced demand can
encourage the government
to import medicines from
the foreign countries
(Löfgren and Williams
2016).

ECONOMIC FACTOR
 The advancement of technologies
also enhanced the chances of
companies to use those
technologies in their medicines
production and it will helps in the
development of the more number
of advanced medicines and it will
help the companies to gain more
revenues from the market.
 According to the study of Prajogo,
McDermott, and Jayaram (2014), it
is reported that the advancement
of the technologies in the country
has greatly contributed to the
advancement of the economy of
the industry as it may improve the
economy of the country.

ECONOMIC FACTOR
 the enhanced number of
aging population in the
society of the Australia is
closely related with the
advancement of the
pharmaceutical industry of
the country as more demand
of the medicines in the
market will create more surge
in the market of the country.
 more amount of investment
in this sector will also
enhance application of the
innovation in this industry
(Campos et al. 2017).

ECONOMIC FACTOR
 Pharmaceutical Advertising Act
2019 is associated with the
advertisements of the medicines in
the country and as a result the sale
of the medicines will be enhanced
as more amount of people can have
knowledge regarding that particular
product and as a result the overall
selling of the medicines will
enhance.
 Pharmacy Bill 2010 promotes the
government to provide more
subsidies to the medicines. On the
contrary, the subsidy by
government may pose threat to the
companies as their overall revenue
may hamper as people can have
the medicine at a lower rate.

OVERVIEW OF THE ISSUE
 As per the study of
Karnon, Edney and
Afzali (2018), in the
year of 2015-16
only the company
named, Alphapharm
Pty Ltd supplied
only 4 per cent of
the total
requirement of the
medicine

CONTINUED…
 This uncertainty of the
Australian economy
enhances the overall
spending in the health care
sectors and thereby
enhancing the overall
burden of the economy on
the stakeholders.
 In the year of 2015,
Australia imported goods
and medicines of almost A$
31 billion from US (Karnon,
Edney and Afzali 2018).

ETHICAL CONSIDEARTIONS
 it is very crucial to
maintain the ethical
values and morals
while working in an
industry related to
the health sector of
the country.
 this industry
requires application
of the human
samples during the
research processes

RECOMMENDATION
 more number of
pharmaceutical companies
should be encouraged to
produce medicines within
the country .
 Another measure that can
be recommended is the
fact that the government
must provide more
subsidies to the medicines
to reduce the overall
burden (Cobiac et al.
2017).

CONCLUSION
 Therefore, it can be
concluded that the economic
factor is one of the major
threats for the industry in
the country. In this regard, it
can be stated that the high
amount of external
investment and outsourcing
of the medicinal products in
the country are enhancing
the overall burden of the
country’s economy. So, it is
very crucial to identify this
problem in the country.

REFERENCES

 Cobiac, L.J., Tam, K., Veerman, L. and Blakely, T., 2017. Taxes and subsidies for improving diet and
population health in Australia: a cost-effectiveness modelling study. PLoS medicine, 14(2), p.e1002232.
 Fabbri, A., Grundy, Q., Mintzes, B., Swandari, S., Moynihan, R., Walkom, E. and Bero, L.A., 2017. A
cross-sectional analysis of pharmaceutical industry-funded events for health professionals in
Australia. BMJ open, 7(6), p.e016701.
 Francer, J., Izquierdo, J.Z., Music, T., Narsai, K., Nikidis, C., Simmonds, H. and Woods, P., 2014. Ethical
pharmaceutical promotion and communications worldwide: codes and regulations. Philosophy, Ethics,
and Humanities in Medicine, 9(1), p.7.
 Gray, S., Harymawan, I. and Nowland, J., 2016. Political and government connections on corporate
boards in Australia: Good for business?. Australian Journal of Management, 41(1), pp.3-26.
 Grundy, Q., Fabbri, A., Mintzes, B., Swandari, S. and Bero, L. (2016) The inclusion of nurses in
pharmaceutical industry–sponsored events: guess who is also coming to dinner?. JAMA internal
medicine, 176(11), pp.1718-1720.
 Karnon, J., Edney, L. and Afzali, H., 2018. The political economy of the assessment of value of new
health technologies. Journal of health services research & policy, 23(2), pp.116-122.
 Kelly, B., 2015. Online pharmacies: buyer beware. Australian prescriber, 38(6), p.186.
 Löfgren, H. and Williams, O. eds., 2016. The new political economy of pharmaceuticals: production,
innovation and TRIPS in the global south. Springer.
 Malik, A., Lenzen, M., McAlister, S. and McGain, F. (2018). The carbon footprint of Australian health
care. The Lancet Planetary Health, 2(1), pp.e27-e35.
 Prajogo, D.I., McDermott, C.M. and Jayaram, J., 2014. The role of technological intensity in services on
the capability to performance relationships–An examination in the Australian context. Journal of
Engineering and Technology Management, 31, pp.58-72.
 Vitry, A. and Roughead, E., 2014. Managed entry agreements for pharmaceuticals in Australia. Health
Policy, 117(3), pp.345-352.