Fig. 3.4. Pharma & Biotech Company Reputations Source: Pharm. Exec. Vol. 24, 2004, Vol. 25, 2005
stability (3), leadership (4), marketing effectiveness (6), strategy (8), and global effectiveness (9). Four other criteria involve issues well beyond the sales and marketing-related operations and business issues, looking at the societal issues of social responsibility to the public and community: ethical behavior (1), third-party relations (5), community outreach (7), and charitable support (10). R&D has a direct impact on at least seven factors: overall company status, ethical behavior, strategy, financial stability, third-party relations, global effectiveness, and leadership. The top companies changed significantly from 2003 to 2004: Merck, Pfizer, Johnson & Johnson, Amgen, and GSK to Lilly, Genentech, Amgen, Johnson & Johnson, and Novartis, respectively. Biotechnology companies reached the top five in 2003 with Amgen for the first time and for Genentech and Amgen in 2004. The criteria were changed year after year to add strategy, global effectiveness, and third-party relations; two areas were deleted, manufacturing effectiveness and competitiveness. These additions are very compatible with major business and social commitments that comprise successful pharmaceutical companies. Employee retention was expanded to address workforce, a more global analysis of personnel issues.
The stock price of a pharmaceutical or biotechnology company is impacted by a host of factors well beyond just the sales and profitability statistics. Ten factors are listed in the next list (Fig. 3.5). As expected, the R&D track record for product approvals by regulatory authorities would be the biggest factor to move the stock price, and approvals in all three major markets worldwide is then a global goal. Also, product failures commonly occur and are assessed closely as well; less than 1 product in the 5-10 products entering clinical research will be approved. The breadth and depth of the product portfolio in research and in development change
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