5_Globalization and the Pharmaceutical Industry Revisited

5_Globalization and the Pharmaceutical Industry Revisited -...

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Unformatted text preview: Globalization and Pharmaceutical Industry / 585 In addition I want to use one criterion of cultural globalization: 4. the sale of particular pharmaceutical products across the world in a more or less standard form. I have selected this last criterion as the aspect of cultural globalization most relevant to the pharmaceutical industry, although we should not entirely neglect aspects of hybridization. In considering each criterion it is also important to look at counter-tendencies, as well as any movements towards greater globali- zation. With these four criteria in mind, I now turn to examine the pharmaceutical industry at the beginning of the let century in more detail. THE PHARMACEUTICAL INDUSTRY The Leading Companies The pharmaceutical industry is dominated by companies that are among the largest in the world and are international in terms of their sales, their manu- facturing activities, and the distribution of employees, subsidiaries, and affiliates. The domination of the industry by large-scale companies has increased over recent years. Since the beginning of the 19903 there has been a period of major consolidation in the industry, as a result either of mergers between companies already high on the list of leading companies or of important acquisitions by leading companies. As a result the ranking of the leading companies has changed quite considerably over the last decade. The top ten leading companies in 2000, as measured by total sales revenue, along with the location of their headquarters, are shown in Table 1. More than half have their headquarters in the United States and the remainder in Europe. The extent of the consolidation over recent years can be seen if we compare the top ten for the year 2000 with the list of the top 15 companies in 1992 presented by Tarabusi and Vickery (3, p. 87). Of the 1992 top 15, six companies have been involved in mergers during the period (the figures in brackets give their 1992 rankings): Glaxo (2nd) with SmithKline Beecham (6th); Hoechst (4th) with Rhone Poulenc (14th); and Ciba-Geigy (5th), with Sandoz (8th). In the same period Pharmacia merged with Upjohn (neither in the top 15 in 1992), helping to secure the company’s presence in the top ten, and Pfizer, 11th in 1992, merged with Warner-Lambert in 2000 and was the largest in terms of sales in 2000. Two companies have fallen out of the top ten during the decade— Bayer, the German company that has a long pharmaceutical tradition but whose business involves extensive work in agriculture, polymers, and chemicals: 9th in 1992 and 15th in 2000; and the Swiss company Hoffman La Roche: 7th in the list in 1992 and 12th in 2000. ...
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