What Is A Pharmaceutical Company?

A pharmaceutical company, or drug company, is a company licensed to discover, develop, market and distribute drugs.

Most major pharmaceutical companies were founded in the late 19th and early 20th centuries, although it is only since the 1950's the industry got underway in earnest. The discovery of penicillin is widely regarded as the birth of modern pharmaceuticals - this was the moment where systematic scientific approaches, understanding of human biology and sophisticated manufacturing techniques all made the development of medicines possible. The industry remained relatively small scale until a long period of scientific advancements through the 1970s to present day elevated some companies to become among the most profitable and productive in the world.

The industry has delivered significantly improved treatment for patients and morbidity/ mortality rates across developing countries continue to fall due in no small part to the innovation of research-based pharmaceutical companies.

There are currently more than 200 major pharmaceutical companies. As in some other industries, economic pressures are forcing pharmaceutical companies toward greater efficiency. The costs of research and manufacture of ever more sophisticated medicines grows every year and the tension between the affordability of new medicines and their benefits look certain to be a continuing major debating point.

Biotechnology has offered new possibilities for the future. The first generation of 'biologic' therapies are already in use, especially in cancer. Vaccines, after many years in the research doldrums, are a renewed focus of interest as better understanding of genetics offers new ideas on how disease might be prevented. Looking to the far future it may even be possible, through the emerging science of pharmacogenomics, to tailor medicines to each individual.