How Does Government Regulation Impact Pharmaceutical Industry?

Government regulation can have a significant impact on the #pharmaceutical industry in several ways.

Firstly, regulations can affect the approval and launch of new drugs, including the time and cost involved in the process. Regulations may also require rigorous testing and clinical trials, which can be costly and time-consuming.

Secondly, regulations can affect pricing and reimbursement policies for drugs. Governments may regulate drug prices, which can impact the revenue and profitability of pharmaceutical companies.

Thirdly, regulations can impact intellectual property protection for drugs, including patents and exclusivity periods. This can affect competition in the industry, as well as the ability of companies to recoup their investments in research and development.

Finally, regulatory compliance is essential for the pharmaceutical industry, and non-compliance can result in legal penalties, fines, and damage to reputation, which can all impact revenue.

What happened recently was unexpected & alarming, the licences of 18 Pharma companies were cancelled over poor-quality medicines and have been asked to stop their manufacturing operations. To avoid such mishaps its very important to have a good control over your business and effective #riskmanagement.