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Economics
Economics by Richard R. Dier Number of New Drug Products Introduced in 1958 Declines
Pharmaceutical manufacturers marketed 370 preparations last year, com pared with a total of 400 in 1957. The total for 1958 was t he lowest since 1953, and might partially have been due to the present high introduct ory cost of promotion which may have deterred some d rug producers from marketing more products. According to Paul de Haen, consultant to t he pharmaceutical industry, an additional 109 new dosage forms became available in 1958. In this area, 1958's total was the highest since 1952's 170 new dosage forms. The total of 370 new products for 1958 represents 253 compounded products and 44 new chemicals or new derivat ives of previously marketed ones. Ten Year CumUlative Totals
In 1958, 16 of the 44 new chemicals were either developed in foreign nations or marketed by companies which are owned abroad. Of interest is the fact t hat 6 of t he new chemicals were derivatives of previously marketed products, which were m ade available because of better solubility, increased potency, or other a dvantages. During t he period 1949- 1958, the industry int roduced a total of 3,657 new products and 1,150 new dosage forms (see Chart I).
Chart II-Gross National Product, Current Prices and Real 1957 Prices * (billions of dollars) 445.6
Current prices
/
Retail Pharmacy Failures
Third
First
quarter
Third
quarter
1957
quarter
1958
1958
* Source: U. S. Department of Commetce Gross National Product
Thanks to the U.S. Department of Commerce, reporting of the gross national product will now enable us to note more clearly the actual volume of production and the amount of inflation involved. Previously, such reports were given in terms of current dollars and in terms of dollar prices, current in the period for which the report was made. Under a new system, gross national product (GNP) will be reported in terms of 1957 dollars. Consequently, the gap between figures will indicate the effect of inflation (Chart II). Value of the new GNP data in analyzing business trends is shown in the chart, which indicates drop and recovery
Chart I-Pharmaceutical Products Introduced Nationally* A Ten-Year Period Number of Firms
T ot a l New Products
84 100 86 89 107 101 124 126 127 126
389 326 321 314 353 380 403 401 400 370
40 28 35 35 48 38 31 42 51 44
349 298 286 279 305 342 372 359 349 326
170 118 120 170 97 108 96 66 96 109
3657
392
3265
1150
N ew dosage forms
New Compounded Single and other Chemicals Products
New Dosage Forms
1150 4807
New Single Chemicals-Indicates products which are new single chemical entities not previously known , a nd d evel o ped b y one manufacturer. Compounded and Other P roducts-Any product containing more than one active ingredient or a product containing a s ingle ingredient already marketed by another manufacturer. New Dosa ge F orm-If a product has originally been marketed in tablets and is now offered in ampuls, suppositories, etc., the latter a re considered new dosage forms. Source : Paul de Haen.
*
152
Total pharmacy failure s in 1958 reached 165, compared to 162 in 1957. Total approximate liabilities for each of these two years were $4,000,000. The approximate 2% increase for 1958 is significantly low when one considers that 1958 was a recession year for the economy a s a whole, and overall business failures were at an all-time high. As a matter of record, Dun's Review and Modern Industry points out that in the retail field 12% of restaurants and 24% of automotive trade st ores failed last year. Health Insurance Payments Soar to Record Highs
Americans received approximately $4,800,000,000 in benefits during 1958, representing an increase of 14% over benefits of $4,200,000,000 in 1957. Of the 1958 total, about $2,600,000, 000 was paid by private insurance companies, reports the Health Insurance Institute of New York. The remainder was paid by Blue Cross and Blue Shield plans and government programs. 121,000,000 Americans Health Insurance
1949- 1958
1949 1950 1951 1952 1953 1954 1955 1956 1957 1958
during the 1957-58 recession. The current price data show a $19.8 billion drop, followed by a $13.2 billion recovery (about 65% of the drop) , through the third quarter of 1958. The new data, which have been adjusted for price changes, show a greater drop, or $24.4 billion, while the recovery was only $10.3 billion (4 0% of the drop) .
JOURNAL OF THE AMERICAN PHARMACEUTICAL ASSOCIATION
Carry
Some 70,000,000 people are now insured by private companies, with 51,000,000 others covered by some form of health insurance. About 40% of those over 65 carry health insurance coverage of some sort, the Institute says, with most of this growth occurring within the past 5 years. Increased Appropriations for Food and Drug Administration
The President has requested an increase in appropriations of approximately 7% for the enforcement of pure food and drug laws in the fiscal year 1960. His request is for $13,210,000, compared to $12,355,000 in 1959. It is interesting to note that estimated 1959 expenditures are about twice the amount given to the Food and Drug Administration in 1954: $6,285,967.
Pharmaceutical manufacturers marketed 370 preparations last year, com pared with a total of 400 in 1957. The total for 1958 was t he lowest since 1953, and might partially have been due to the present high introduct ory cost of promotion which may have deterred some d rug producers from marketing more products. According to Paul de Haen, consultant to t he pharmaceutical industry, an additional 109 new dosage forms became available in 1958. In this area, 1958's total was the highest since 1952's 170 new dosage forms. The total of 370 new products for 1958 represents 253 compounded products and 44 new chemicals or new derivat ives of previously marketed ones. Ten Year CumUlative Totals
In 1958, 16 of the 44 new chemicals were either developed in foreign nations or marketed by companies which are owned abroad. Of interest is the fact t hat 6 of t he new chemicals were derivatives of previously marketed products, which were m ade available because of better solubility, increased potency, or other a dvantages. During t he period 1949- 1958, the industry int roduced a total of 3,657 new products and 1,150 new dosage forms (see Chart I).
Chart II-Gross National Product, Current Prices and Real 1957 Prices * (billions of dollars) 445.6
Current prices
/
Retail Pharmacy Failures
Third
First
quarter
Third
quarter
1957
quarter
1958
1958
* Source: U. S. Department of Commetce Gross National Product
Thanks to the U.S. Department of Commerce, reporting of the gross national product will now enable us to note more clearly the actual volume of production and the amount of inflation involved. Previously, such reports were given in terms of current dollars and in terms of dollar prices, current in the period for which the report was made. Under a new system, gross national product (GNP) will be reported in terms of 1957 dollars. Consequently, the gap between figures will indicate the effect of inflation (Chart II). Value of the new GNP data in analyzing business trends is shown in the chart, which indicates drop and recovery
Chart I-Pharmaceutical Products Introduced Nationally* A Ten-Year Period Number of Firms
T ot a l New Products
84 100 86 89 107 101 124 126 127 126
389 326 321 314 353 380 403 401 400 370
40 28 35 35 48 38 31 42 51 44
349 298 286 279 305 342 372 359 349 326
170 118 120 170 97 108 96 66 96 109
3657
392
3265
1150
N ew dosage forms
New Compounded Single and other Chemicals Products
New Dosage Forms
1150 4807
New Single Chemicals-Indicates products which are new single chemical entities not previously known , a nd d evel o ped b y one manufacturer. Compounded and Other P roducts-Any product containing more than one active ingredient or a product containing a s ingle ingredient already marketed by another manufacturer. New Dosa ge F orm-If a product has originally been marketed in tablets and is now offered in ampuls, suppositories, etc., the latter a re considered new dosage forms. Source : Paul de Haen.
*
152
Total pharmacy failure s in 1958 reached 165, compared to 162 in 1957. Total approximate liabilities for each of these two years were $4,000,000. The approximate 2% increase for 1958 is significantly low when one considers that 1958 was a recession year for the economy a s a whole, and overall business failures were at an all-time high. As a matter of record, Dun's Review and Modern Industry points out that in the retail field 12% of restaurants and 24% of automotive trade st ores failed last year. Health Insurance Payments Soar to Record Highs
Americans received approximately $4,800,000,000 in benefits during 1958, representing an increase of 14% over benefits of $4,200,000,000 in 1957. Of the 1958 total, about $2,600,000, 000 was paid by private insurance companies, reports the Health Insurance Institute of New York. The remainder was paid by Blue Cross and Blue Shield plans and government programs. 121,000,000 Americans Health Insurance
1949- 1958
1949 1950 1951 1952 1953 1954 1955 1956 1957 1958
during the 1957-58 recession. The current price data show a $19.8 billion drop, followed by a $13.2 billion recovery (about 65% of the drop) , through the third quarter of 1958. The new data, which have been adjusted for price changes, show a greater drop, or $24.4 billion, while the recovery was only $10.3 billion (4 0% of the drop) .
JOURNAL OF THE AMERICAN PHARMACEUTICAL ASSOCIATION
Carry
Some 70,000,000 people are now insured by private companies, with 51,000,000 others covered by some form of health insurance. About 40% of those over 65 carry health insurance coverage of some sort, the Institute says, with most of this growth occurring within the past 5 years. Increased Appropriations for Food and Drug Administration
The President has requested an increase in appropriations of approximately 7% for the enforcement of pure food and drug laws in the fiscal year 1960. His request is for $13,210,000, compared to $12,355,000 in 1959. It is interesting to note that estimated 1959 expenditures are about twice the amount given to the Food and Drug Administration in 1954: $6,285,967.