Recession Impact of Pharmaceutical Industry

The pharmaceutical industry is not recession proof, but compared to other industries taking a major hit, it is not so bad for the pharmaceutical industry. Though, IMS Health recently reported that prescription drug sales slowed for the second consecutive year it is getting stronger from the start of the down fall in 2008. In the first quarter of CVS’ fiscal year 2009, the company reported 152.4 million retail prescriptions filled, compared with 139.5 million at the end of the same quarter in 2008 (Drug Topics Staff). The pharmaceutical industry is not recession proof, but there will always be a demand, it is one of those essential needs people will always pay for even if there is a recession. Pharmaceutical companies have taken notice of the current economic climate as well, by expanding patient-assistance programs. For example my company Pfizer, MAINTAIN (Medicines Assistance for Those who Are In Need) initiative, under which the company will cover the costs of more than 70 of its medications for up to a year for Americans who become unemployed in 2009, have no insurance, have been on a Pfizer drug for three months prior to becoming unemployed, and can attest to financial hardship (Drug Topics Staff). This will help have people keep the GDP up because this will help people buy pharmaceutical goods during the recession. Companies with geerics have also been doing well because generics are cheaper than name brand, so during a recession people will buy them more often. For Thomas Ohliger of Ohliger Drugs, he has had to make major cuts in staff, but “Thank God for generics,” Ohliger has said (Drug Topics Staff) . The pharmaceutical industry has advantages during the recession because there are many products and services to help save people money. Unlike another industry like hotels and luxury cars, pharmaceuticals can be useful in a recession. People can save money by going to discount stores, like Target or Wal-Mart for medication (Drug Topics Staff). Christopher Turf, RPh, a pharmacy manager for Pharmaca has said, “The pharmacist is going to have a lot more opportunity to guide people and to help them make decisions on whether self-care is appropriate or whether they actually need to be seen by their healthcare provider (Drug Topics Staff). This is good for the pharmaceutical industry because people will be looking toward the pharmaceutical industry for guidance and result in more sales of the goods. Turf has also said “…those interactions can be very valuable to both your business and your patients”(Drug Topics Staff).

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