Sector information: pharmaceutical business

Pharmaceutical businesses include a wide range of organizations engaged in the development, production and distribution of drugs and other health-related products. Here are some types of pharmaceutical businesses:

• Innovative pharmaceutical businesses: Research and development of new drugs and treatments. These businesses invest heavily in scientific research and clinical trials.
• Generic pharmaceutical businesses: Produce and sell generic versions of existing drugs after the original drug's patent has expired.
• Biotechnology businesses: Use biotechnology to develop drugs and therapies, such as biologics and gene therapies.
• Contract Research Organizations (CROs): Provide services to pharmaceutical businesses, such as clinical research, data management, and quality control, to support drug development.
• Contract Manufacturing Organizations (CMOs): Produce drugs for other pharmaceutical businesses on a contract basis.
• Pharmaceutical distributors: Manage the logistics and distribution chain of drugs, including wholesaling and distribution to pharmacies and other healthcare facilities.
• Pharmacy chains and retail: Manage pharmacies and retail locations where medicines and health products are sold directly to consumers.
• Research and diagnostic businesses: Focus on diagnostic tests and instruments for identifying and monitoring diseases.
• Pharmaceutical service providers: Provide specialized services to the pharmaceutical industry, including consulting, regulatory advice, and marketing.
• Pharmaceutical wholesalers: Purchase large quantities of drugs from manufacturers and sell them to pharmacies, hospitals and other healthcare providers.
• Natural and complementary medicine businesses: Produce and distribute products based on natural ingredients, dietary supplements and other complementary health products.
• Pharmaceutical technology companies: focusing on developing new technologies and digital solutions for the pharmaceutical sector, such as e-health platforms, clinical trial software and data management.

What to look out for when buying a pharmaceutical business

There are several important considerations when acquiring a pharmaceutical business. Here are some crucial aspects to watch out for:

• Product portfolio and pipeline: Assess the pharmaceutical business's existing product portfolio, as well as its new drug development pipeline. Look at the diversity, quality and potential market acceptance of current and future products.
• Research and development capabilities: Evaluate the business's R&D capabilities and culture. Examine whether the business invests in innovative research programs and has qualified research teams.
• Production and quality control: Check production processes and quality control systems. Make sure the business meets GMP (Good Manufacturing Practice) and other quality standards.
• Intellectual Property and Patents: Research the status of intellectual property, including patent portfolios. View patent term and protection for key products.