Open AccessTrend Analysis of Cost Components in Select Pharmaceutical Companies
Author(s) -
C. Samuel Joseph,
Divesh Kumar,
M Clarence
Publication year - 2019
Publication title -
international journal of recent technology and engineering
Language(s) - English
Resource type - Journals
ISSN - 2277-3878
DOI - 10.35940/ijrte.d8128.118419
Subject(s) - revenue , business , pharmaceutical industry , pharmaceutical manufacturing , profit (economics) , operating expense , manufacturing cost , cost analysis , cost centre , operations management , industrial organization , cost accounting , marketing , finance , accounting , operations research , economics , engineering , medicine , pharmacology , microeconomics
The purpose in this paper is to identify the cost components which are vital in consideration towards manufacturing especially in pharmaceutical companies. The manufacturing costs are significant in total expenses in pharmaceutical industry. In this study, a thorough investigation on the cost components and the trend in expenses and operating profit of pharma companies are studied, giving due regard to cost components to have understanding and to find out how they may differ among various types of pharma companies. The data published in the annual reports from 2009 to 2018 of top five pharmaceutical companies based on their annual revenues has been selected for further diagnosis. The analysis reveals that manufacturing costs are different for all the five companies. The study also reveals that there is a considerable indication that the companies are conscious on the much-needed health benefits to the society in the future at an affordable cost