Pharmaceutical Industry Faces Financial Crises

Financial Crises has hit the manufacturer of thesame effectiveness, additionally; they are available
medicines considerably, many of theat very low costs than the branded drugs. This
pharmaceutical giants have declined the new jobphenomenon of best quality available at lower
recruitment that they were making every year.price has helped remarkably to increase the sale
In comparison to the last year, the business ofof low cost drugs, and thus has decreased the
the pharmaceutical giants is decreased by thesale of the branded drugs. The sale of the low
31%. Even the drugs that were selling like the hotcost drugs is increasing and the sale of the
cakes in the pharmaceutical market are nowbranded drugs is decreasing because of the
feeling the less demand from the customers. Theexceptional high costs kept by the branded drugs
pharmaceutical companies are even cutting downmanufacturers.
their employee strength by either removing theThe government policy to promote the low cost
trainee employees or by reducing the salaries ofdrugs has made consumer aware of the low cost
the permanent employees. The recruitment donemedicines and thus are going only for them. This
by the pharmaceutical industries in the last year ishas affected the sale of the branded drugs
only 3%, very less in comparison to themanufacturer. The government has also reduced
recruitment done in previous years.the taxes on the low cost drugs in order to
Even the other pharmaceutical giants like Merckpromote the low cost drugs. Thus, the sale of the
and Sonafi Aventis has declared that they will notbranded drugs is affected considerably due to the
be doing any new recruitment for the next yearever increasing demand of the low cost drugs.
and no bonuses will be given to the employees.The pharmaceutical giants thus have to eliminate
They have even declared that the salesdiscretionary spending, overtime, and temporary
executive who will not be able to achieve theirworkers to match up with the prices of the low
targets will be given a pink slip the next month.cost drugs. Cost cutting is only way through which
No employee in the company will be given thepharmaceutical giants can cope with the recession
benefits of the performance incentives and alsofactor. Many of the pharmaceutical companies
the unnecessary expenses done by the companyhave even asked the drug distributors to reduce
to promote the products will be cut down. Eventheir profit range in order to keep the prices of
the lots of money spend on the packaging andthe drugs low.
distribution of the products is tried to be cutIn the European countries, branded drugs were
down. The promotional campaigns are also beenthe only drugs that were sold and no one was
shut down in order to cope up with the currentpurchasing the low cost drugs still the last year,
economical crises. Even the cuts in the salaries ofbut because of the financial crises and lot of
the employees have been done by somepublicity from the low cost drugs manufacturers,
pharmaceutical companies in order to save thethe increase in the sale of low cost drugs and
money.decrease in the sale of the branded drugs is
The companies manufacturing the branded drugsnoted. But, the main concern for everybody is
are facing a lot of competition from the low costthat even the low cost drugs sale in not up to the
drugs manufacturers and thus this competition ismark because consumer is not pertaining to the
one major reason why pharmaceutical industriesbuy more medicines. This decline is observed in
manufacturing branded drugs are facing the heatthe entire world in the sale of the medicines and
of the financial recession. Low cost drugs are thethus the financial crises are making the condition
exact replicas of the branded drugs and show theare hitting the pharmaceutical industry badly.