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PESTLE Analysis of the Pharmaceutical Industry

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Rory Sands

on 17 January 2013

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Transcript of PESTLE Analysis of the Pharmaceutical Industry

PESTLE Analysis of the Pharmaceutical Industry Political

- Recent US health reforms has led to increased pressure on price.

- Increased push for continued overseas aid, particularly through the United Nations and the European Union, with price of the drugs being a major factor in the supplier choice. Economical

- Due to the current economic climate, price has become a major factor in pharmaceuticals especially on drugs where generic brands are also available. Social

- Skilled employees can be difficult to source in other third world countries where segments of the batch production line may be based.

- Increasing pressure on pharmaceutical industry to support developing countries through the supply of reduced cost drugs, tightening margins. Technological

- Technology evolution in the industry is fast and needs to be updated frequently to avoid being left behind with the first to implement radical new technology into the production process gaining 'first mover' advantages Legal

- Many legal restraints to releasing drugs suitable for human consumption

- High legal costs associated with passing drugs for human consumption and dealing with unforeseen side effects of a drug Environmental

- Batch production processes of pharmaceutical products can have manufacturing plants based in multiple countries. The carbon footprint of many drugs can be very large due to the amount of transport involved in the batch production processes.
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