Risk Management of the Pharmaceutical Companies

Opinion Compared with other industries, the pharmaceutical industry is driven by R&D and high regulations, as well increasing product complexity quality requirements [1]. Indeed, it usually takes more than 10 years for a new flagship drug to be successfully developed, approved, launched into market. Moreover, costs at least US $1 billion develop [2]. The long development testing cycle, uncertain success prospects, require companies resist manage risks. Over years, has therefore been adjusting its business model drugs that can used widest segment of population possible, through financialized approach. ensuring long-term profitability revenue company, upon launching drugs, raises serious concerns involved parties in [3]. risks faced enterprises include patent cliff, declining market demand, impacts external financial pressures.