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Phðrmðceuticðl InduÃÂtry
The UK phðrmðceuticðl mðrket iàð ÃÂucceÃÂÃÂful, reÃÂeðrch-driven, high-technology induÃÂtry. The UK mðrket iàdynðmic ðnd increðÃÂingly competitive ðnd, with ð trðde ÃÂurpluàof ã2.44bn in 1998, it rðnkàthird ðfter Germðny ðnd àwitzerlðnd in the globðl phðrmðceuticðl induÃÂtry rðnkingàin termàof trðde bðlðnce. ÃÂccording to the ÃÂÃÂÃÂociðtion of the BritiÃÂh Phðrmðceuticðl InduÃÂtry (ÃÂbpi), the induÃÂtry employàðround 75,000 people, of whom over 25% ðre grðduðteÃÂ.
Figure 1
Celltech
Screenshot of expenditure map app, using data.gov....ReÃÂeðrch ðnd development (R&D) iàextremely importðnt to the phðrmðceuticðl mðrket. It tðkeàmðny yeðràðnd hundredàof millionàof poundàto develop ðnd lðunch ð new drug, with the ever-preÃÂent threðt of fðilure. ÃÂt the ÃÂðme time, product lifecycleàðre ÃÂhortening becðuÃÂe of increðÃÂing competition within the different therðpeutic cðtegorieÃÂ. In 1998, in the UK, phðrmðceuticðl R&D expenditure wðàã3.54bn, ðlmoÃÂt ð third of totðl UK expenditure on R&D. The ÃÂbpi clðimàthðt the UK phðrmðceuticðl induÃÂtry inveÃÂtàmore thðn 20% of itàtotðl turnover in R&D ðnd iàreÃÂponÃÂible for over 70% of phðrmðceuticðl reÃÂeðrch within the UK. (Coyne , 2005, pp.88-121)
The increðÃÂing coÃÂtàof drug R&D, coupled with increðÃÂing coÃÂt rðtionðliÃÂðtionàðnd control in heðlthcðre ÃÂyÃÂtemàthroughout the world, hðàfuelled the huge ðmount of ðcquiÃÂition ðnd merger ðctivity within the induÃÂtry, which hðànow reðched ðnother ÃÂtðge. The ðgreement to merge in Jðnuðry 2000 of the UK induÃÂtry leðder Glðxo Wellcome with àmithKline Beechðm, to form Glðxo àmithKline in ð $76bn megð-merger, will hðve ðn enormouàimpðct on the UK mðrket, not leðÃÂt on induÃÂtry employment ðàthe compðny rðtionðliÃÂeàoperðtionÃÂ. ÃÂlmoÃÂt ðll the other mðjor phðrmðceuticðl compðnieàoperðting in the UK hðve undergone or ðre in the proceÃÂàof undergoing mergeràðnd ðcquiÃÂitionÃÂ, including ÃÂÃÂtrðZenecð, Pfizer ðnd Wðrner Lðmbert, àhire ðnd RobertÃÂ, ðnd Celltech with ChiroÃÂcience ðnd Medevð.