The evolution of the pharmaceutical industry

This paper provides an overview of the main traits of the evolution of the pharmaceutical industry in its historical development. After a brief overview of the main evolutionary concepts which guide the subsequent discussion of pharmaceuticals, the paper identifies four main eras: from the formative stages (from late 1800 to War World II), to the so-called Golden Age (1940s- mid 1970s), the biotechnology revolution (1970s-2000 approximately) and what we label the “Winter of Discontent?” (the first decade of the new century). Within all these epochs, we discuss the main trends in technology, firms’ strategies and structures, patterns of competition, demand, regulation and institutional developments. The conclusions discuss some main implications for the present and future of the industry on the one hand and for the relevance of an evolutionary approach to the analysis of corporate and industrial change.