What do pharmaceutical companies do

Table of content

  • What does a pharmaceutical company do?
  • The main goals of a pharmaceutical company
  • Pharmaceutical regulatory bodies
  • How do pharmaceutical companies work?
  • Should you work in a pharmaceutical company?
  • What do people in different pharmaceutical jobs do?
  • Key Financial Metrics Used In Pharmaceutical Industry
  • What are the types of pharmaceutical products?
  • Conclusion

What does a pharmaceutical company do?

The pharmaceutical industry is a huge sector that deals with the development, distribution, and research of medicines and pharmaceuticals. Understanding what pharmaceutical businesses truly do will help you decide if working for one is the correct career choice for you if you want to work in the industry. Today, we’re going to go inside a pharmaceutical company’s closed-door laboratory to see what actually happens there.

The main goals of a pharmaceutical company

Pharmaceutical businesses’ top objective is working to provide medicines and medical treatments that can save patients’ lives. To do this, they invest a lot of effort in creating infrastructure, testing new technologies, and designing treatments that are both effective and secure. We wouldn’t have cures for common illnesses and malignancies without pharmaceutical firms.


Pharmaceutical regulatory bodies

Pharmaceutical companies need to follow a number of rules when it comes to dispensing a novel medication to sick patients. These rules contribute to the safety of people like you, myself, and sick people everywhere. International regulatory bodies keep an eye on matters such as:

  • The cost at which medications are sold
  • Standard of the drug and the production process
  • The medication’s safety and potential negative effects
  • The research being done to demonstrate the drug’s safety

You may have heard of the World Health Organization (WHO) and the Medicines and Healthcare Products Regulatory Agency as a couple of the pharmaceutical regulatory organizations (MHRA).

How do pharmaceutical companies work?

Since the 19th century, the pharmaceutical sector has developed and changed. As you may expect, they now operate very differently than they did back then. In the past, new medications and therapies were either accidental or the result of thorough analysis of holistic or conventional treatments. Some of the most widely used medications we use today were stumbled upon, for instance:

  • Contraceptive pill 
  • Viagra, and 
  • Penicillin

Pharmaceutical businesses now operate in a much more organized and systematic manner. In order to understand what causes a certain disease, infection, or ailment to manifest, study must first be conducted. Then, scientists look for strategies to molecularly target the diseases. Programs for data management and research are available to expedite the procedure even more.

Pharmaceutical firms from all over the world collaborate to find a viable vaccine to help save lives when a new infection or virus (like COVID-19) enters the scene.

Should you work in a pharmaceutical company?

Since the pharmaceutical sector is a dynamic one, working there is certain to be interesting and varied. Pharmaceutical firms hire individuals from various walks of life; all you need to get started is a strong sense of ambition and technical knowledge.

We already know that there are 70,000 individuals employed in pharmaceutical businesses and the relatively high income expectations, it is easy to understand why this field is so well-liked. Contacting Vimpex Limited can help you find out additional reasons why you should work in the pharmaceutical sector. 

Read More: What is Corporate Social Responsibility(CSR)

What do people in different pharmaceutical jobs do?

If you have the education and experience necessary to pursue a career in the pharmaceutical industry, you may be unsure about which position to choose. There are no “best” or “worst” roles in the construction sector; instead, you should consider the benefits and drawbacks of each position to determine whether it’s a suitable fit for you. Having said that, some characteristics are more suitable for some pharmaceutical vocations than others.

Tech Positions

Some of the most technical positions need you to be skilled with specialized equipment, confident handling of medications, and very organized. These jobs could consist of:

  • Seasoned quality expert
  • Technician in research and development and scientist in RNA extraction
  • Expert in sample preparation

Managerial Jobs

If running a lab isn’t your strongest suit but you still want to work for a pharmaceutical company, you may opt for a more management or administrative position. You might see some of the following job titles:

  • Executive in pharmaceutical marketing
  • Managers of products or projects
  • Personnel in HR
  • Manager of supply chain operations

Key Financial Metrics Used In Pharmaceutical Industry

As a percentage of revenue, research and development expenses

When assessing pharmaceutical firms, it can be helpful to look at expenses as a percentage of sales. Because they can only thrive and expand by finding and creating new medicines, the majority of pharmaceutical businesses have very high research and development (R&D) expenses. It is possible to determine whether a company is building a robust pipeline of potential new pharmaceuticals for the market by looking at the R&D budget as a percentage of revenue. Compare the percentage of R&D spending as a percentage of revenue to both industry averages and the company’s own prior spending. A corporation may have a diminishing pipeline if its R&D ratios are declining, which is a bad sign.

Profit Margin

Another important indicator is profit margin. Operating profit margin enables the investor to comprehend the impact of R&D to determine whether the program is bringing successful candidates to market, whether marketing and selling expenses are positively affecting revenues (gains in market share), and whether outside factors are adversely affecting the company. New and innovative drugs frequently have high profit margins while the margins for the entire company are much lower.

Selling Cost As A Percentage Of Revenue

A falling trend in selling costs as a percentage of revenue shows that the company is able to sell its product without incurring significant marketing, sales, or distribution expenses, which amplifies the market’s predominance of that product.

Employee cost as percentage of revenue

Employee cost as a percentage of revenue indicates that the company is spending an increasing amount of revenue on employee expenses. The company is hiring more people to meet future demand. As a result, the company has a bright future in the upcoming few years.

Dividend to earnings

A pharmaceutical company’s dividend to earnings ratio is crucial because investors anticipate that these cash-rich businesses will return money to shareholders through dividends or other capital structure initiatives.

What are the types of pharmaceutical products?

Pharmaceutical companies contribute to the improvement of society’s health and wellbeing. Although there are various pharma business models, they all contribute to the discovery, development, and production of medicines. Pharmaceutical businesses of all stripes employ a variety of strategies to develop special treatments and medications. Pharma firms, however, unavoidably have an impact on practically the entire world’s population. In addition, this blog from Vimpex Limited will examine various pharma product categories.

Medicinal companies of many categories specialize in producing various pharmaceutical formulations. Additionally, various active ingredients, fillers, and additives are there in each of these formulations. Let’s examine the most popular pharmaceutical product categories that pharmaceutical firms focus on.

  • Oral drugs
  • Parenteral Formulations
  • Topical Medicines
  • Modified release Formulations
  • Novel Drug Formulations
  • Oncological Formulations

The following are the main categories of pharmaceutical drugs when we consider which parts of the body they affect:

  • Antacids, antiflatulents, proton pump inhibitors, laxatives, and antispasmodics for the digestive tract.
  • Beta-blockers, diuretics, antiarrhythmics, vasoconstrictors, vasodilators, anticoagulants, and hemostatic medications are also used to treat the cardiovascular system.
  • Psychedelics, hypnotics, anesthetics, antipsychotics, antidepressants, antiepileptics, barbiturates, and antihistamines are other nervous system medications.
  • Antibiotics, antiviral, antifungal, anti-inflammatory, and allergy medications are also used to support the immune system.
  • Androgens, estrogens, gonadotropin, corticosteroids, and thyroid hormones make up the endocrine system.


The pharmaceutical sector is expanding recently and is aiming to develop in an upward direction. These high-tech industries must be fully aware of the ultimate consumers. It’s crucial to effectively communicate complex information. The corporations will be able to reduce their expenditures through proper medication use, which will assist to boost their earnings. This blog from Vimpex Limited provides information on the development, requirements, and characteristics of the Indian pharmaceutical market. It also addresses the current situation, potential outcomes, difficulties, and approaches that Indian pharmaceutical firms should take.