Drug industry cost pressure could benefit chemical firms. (Cover Story: Pharma Focus).(Cover Story)

Chemical Week, June, 2002 by Mullin, Rick

The pharmaceutical industry is coming to the end of the blockbuster era, analysts say. Patent expiries and a steep drop-off in clinically significant innovation is forcing drug makers to develop new strategies for shoring up margins as pricing comes under increasing pressure from generic competition, health care programs, and mounting public outcry for change. Cost cutting is inevitable in every aspect of the business, analysts say, including R&D and marketing, where astronomical spending no longer boosts the bottom line.

"The four-dollar pill costs 20 cts to make," ...