J&J’s debt ratio in 2017 was also 0.50 and has remained flat between 2012 to 2017 with an average ratio of 0.47. In response to increased competition, many companies are beginning to outsource labor and research endeavors to reduce costs (Oliver, 2017). Pfizer currently has some of the most highly recognizable brand name drugs and have impacted multiple clinical guidelines. The pharmaceutical industry discovers, develops, produces, and markets drugs or pharmaceutical drugs for use as medications to be administered (or self-administered) to patients, with the aim to cure them, vaccinate them, or alleviate the symptoms. Between 2013 to 2014, Merck’s ROE increased from 9% to 25% (Table 4a). Our website is made possible by displaying online advertisements to our visitors. The nutritional supplement industry is not regulated by the FDA, and the claims made by these products have not been verified. The equity multiplier increased in 2013 from 2.26 to 2.88 in 2016. The reason for this is that drug development has typically been proprietary and in house. The purpose of this analysis is to assess the financial health and stability of major companies operating in the brand name pharmaceutical manufacturing industry. Industry averages for net profit margin trended upward and can also be seen with J&J (Table 3a, 3d). The true costs of drug development can be outstanding and without proper return on investment, pharmaceutical companies cannot develop the drugs that may save lives in the future. The most significant change in Merck’s current ratio was between 2014 to 2015 in which the current ratio decreased from 1.77 to 1.55 as a result of an increase in total current assets, and more specifically, a reduction in total inventory (Table 3b). Merck currently has 9.6% of the market share and operates in the pharmaceutical, animal health, alliances and healthcare services. By advertising direct to consumers, businesses will be able to lower their customer acquisition costs and gain more customers as a result. The recent controversies of Turing Pharmaceuticals’ 5,555% price increase of Daraprim® in 2015 and Mylan’s 500% increase of EpiPen® in 2016 were heavily contested during the recent presidential election between Hillary Clinton and Donald Trump (Loo, 2017). When these drugs — such as diabetes treatments — are crucial to another human being’s survival, it seems incredibly unethical to price them so highly. The average current ratios of both Merck (1.8 between 2012 to 2016) and Pfizer (1.99 between 2012 to 2016) are well below industry averages and have trended downward. Manufacturers will negotiate to be classified in a lower tier to drive demand at the cost of reducing revenue (Oliver, 2017). With continued scrutiny of increased drug prices, many of the major pharmaceutical companies have become more selective with the development of new drugs. What are the key drivers for economic growth in the region? The formula consists of the profit margin, asset turnover, and the equity multiplier. Another trend that many brand name pharmaceutical manufacturers have been concerned with, is the generic drug industry. The most prevalent cancers include prostate cancer in men and breast cancer in women. There are multiple reasons for why only four major companies own almost half of the total industry’s revenues. Advancements in active pharmaceutical ingredient (API) manufacturing, and growth of the biopharmaceutical sector is also driving the market growth. Widespread population aging and sedentary lifestyles leading to increased chro… Although the industry is still quite profitable, the rise of generic drug manufacturing has impacted sales of most brand name manufacturers. Ultimately, the decrease in ROE between 2013 and 2014 resulted from a decrease in profit margin. Pfizer created a cheaper drug to compete with J&J’s Remicade for arthritis but is unable to sell to health insurers, hospitals and clinics due to exclusionary contracts imposed by J&J (Rockoff, 2017). For instance, when Mylan increased the price of EpiPen® by 500% consumers were outraged but had no choice but to pay the price increase because the drug was potentially a lifesaving drug. J&J’s equity ratio in 2017 was 0.50 and has remained flat between 2012 to 2017 with an average ratio of 0.53 (Table 3d). No significant changes in debt ratio was seen between 2012 to 2017. The pharmaceutical industry has performed relatively well in 2017 despite controversial drug price increases (Ratty, 2017). Pfizer’s equity ratio in 2016 was 0.35 and has remained flat between 2012 to 2016 with an average ratio of 0.41 (Table 3c). The average industry gross margin between 2012 to 2016 was 69% (Table 3a). Global Pharmaceuticals Industry Analysis and Trends 2023 Global pharmaceutical market is expected to grow in the upcoming years despite recent slowdown in key markets … The pharmaceutical industry is currently in the Mature stage (Oliver, 2017). The profit margins are high, there are a large number of small and large sized player, and strict government regulations make it a very competitive industry. The Cloud Computing in Pharmaceutical market analysis is provided for the international markets including development trends, competitive landscape analysis, and key regions development status. Between 2012 and 2016, Merck experienced a 50% reduction in cash from $13 million to $6.5 million as a result of purchasing Cubist Pharmaceuticals (Loftus, 2014). An aging population with growing obesity numbers will always need some kind of medication, and the tough regulatory framework ensures the market isn’t disturbed too soon. 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