Brexit effect on pharmaceutical industry
Introduction
The pharmaceutical industry has been in existence for a millennial now. However, it’s only within the last century that the general public has been able to clearly understand the role that the pharmaceutical plays in real-life scenarios. While the Generic pharmaceutical industry is hugely profitable, the future outlook of this industry in the UK is mixed, especially with the recent success of the Brexit (Ebeleghe et al., 2016)… Despite the aging population that has tremendously increased in the country, the generic pharmaceutical industry in the UK is being held back by various pricing pressure, especially from the government and the new trend towards being healthy. In this PESTLE analysis, the pharmaceutical industry in the UK is analyzed with regard to the role of the influence that Brexit has had on this business. It looks at hoe the political, sociocultural, technological, legal and environmental factors, mainly triggered by the Brexit impacts on the future of the industry (Rahman, 2019).
Political
The direction taken by Brexit has recently inflicted the political climate of the UK. This political influence has had a significant impact on the generic pharmaceutical industry in the country. The political temperature which has been created by the Brexit has dramatically impacted on the overall regulatory frameworks as well as the pricing pressure on the pharmaceutical industry in the UK. The success of the Brexit, for example, has made the veracious regulatory bodies dealing in the pharmaceutical product in the country to heighten and lay essential rules for those operating in this industry.
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These agencies have, in the process, as a result, developed complex frameworks that offer serious barriers and entry of new competitors in the pharmaceutical industry. This is aimed at protective the UK consumer from the fake and illicit trade of pharmaceutical product that is likely to gent the way into the market as a result of the Brexit. Besides, the government has also, through the agencies, review the various elements of the pricing to limit the entry of such drugs into the market (Ebeleghe et al., 2016).
Economic
Overly, there has been an upward trend in the housel hold pending in the pharmaceutical product in the country. This element has resulted in a growth in the spending rate on the generic pharmaceutical industry in eh country. This means that an average UK citizen spends more and more money in healthcare and the pharmaceutical, in particular, each year. Regardless of the reason for this trend, it can only mean the generic pharmaceutical industry is growing compared to what it was five years ago.
There has been increasing growth in the absolute value of the money that the individuals are spending on the pharmaceutical product. In the last few years, the growth rate in pharmaceutical spending has grown by over 12%. The generic companies have grown by an estimated 5% owing to the ever-increasing need for an affordable pharmaceutical product in the UK. Also, generic pharmaceutical product exports have increased as a result of the ever-growing global market size. This has resulted in the growth of the generic companies in the country by 6% over the last one year (Ebeleghe et al., 2016).
Social
The global healthcare rapidly improves, so is the UK again population increases. This, therefore, means that the average person is now older than ever before and needs more medical attention. Older individuals typically have more severe health-related problems and more of them than the younger individual. Therefore, aging populations mean that people are having more issues to handle Instead. This has seen a need for a more pharmaceutical product to cater to this population. The UK generic pharmaceutical product industry is affected by the shifts in the aging population and the increasing population of individuals who are actively being involved in other unhealthy processes (Rahman, 2019).
Technology
The pharmaceutical industry is one technology-intensive industry. As such, it is significantly impacted by technology. The success of this industry follows the latest technological trends.
Biotechnological industry
The UK generic pharmaceutical biotechnology element I fast-growing. As new medications are being created for various biological sources, the pharmaceutical industry might be in the process of having a more extensive range of drugs to produce and distribute, generating addiction revenues. On the other hand, if biotechnological is used in creating heather food options, it might take away from the pharmaceutical industry. For example, the various each alternatives are being developed based on the plant source as the meat has been believed to be one of the leading causes of health problems (Fura, 2017). The generic pharmaceutical industry is, therefore, benefiting from the aspect of technology by reducing disease, which is associated with such meat products.
The technology is seen as an alone solution to the pharmaceutical industry as it champions for fewer diseases on this same element. Besides, the application and development of various aspects of biotechnology have made it possible for the industry to grow quite faster in the UK. UK has significantly invested biotechnology in strengthening some of the research on the development of the pharmaceutical industry in the UK (Fura, 2017).
Direct advertising
Businesses in all industries have a unique kind of opportunity to market directly to clients in recent days. This made possible by technology; in particular, it’s the sophisticated advertisement system that permits the brand interactions with the users in their portals that can improve the advertising potential. This has dramatically been made possible by the latest application or use of social media, which has significantly shaped the advertising of the pharmaceutical product in the country (Rahman, 2019).
Legal
The legal factors which affect the generic pharmaceutical industry are based on the critical regulatory agencies which impact on the nature of this industry. In the UK, the generic pharmaceutical industry is affected by the regulation which has in recent days, been strengthened by the Brexit success. Mot individual companies and dealers in the pharmaceutical product have much felt the impact of both the negative and the positive effects of these regulations. The export law introduced after the Brexit seems not to favor the development of better trade ties with other countries, which formerly made a trade with the UK on the generic pharmaceutical products.
Conclusion
The pharmaceutical industry in the UK is one of the most agile sectors. With the growing population of aged individuals, various opportunities are opening for the industry. However, this does not guarantee the growth of the industry as multiple factors other than the population of the aging individuals also do effect the sues of the industry In different ways. From the PESTLE analysis, various factors do impact the UK generic pharmaceutical industry differently.
References
Rahman, M. (2019). PESTEL analysis of UK
Tukdeo, R., Kalilombe, E., Onyeugbo, O. C., Okafor, F., & Ebeleghe, R. (2016). The global pharmaceutical industry.
Fura, B. T. M. (2017). Internationalization of a health market research company to the United Kingdom (Doctoral dissertation).
Hamza, A., Cook, R., & Hadzic, V. The Global Pharmaceutical Industry.
