2. Why is PEs important?
• Assist in decision making
• Assessing the value of new agent
• Justify the addition of new clinical service
• Comparing
3. Factors of production
• An economic term to describe the inputs that are
used in the production of goods or services in
the attempt to make an economic profit. The
factors of production include LAND, LABOR,
CAPITAL AND ENTERPRENEURSHIP.
4. LAND: represents all natural resources
such as gold and timber, used in the
production of a good
LABOR: is all of the work that workers
perform at all level of an organization,
except for the entrepreneur
Capital: is all of the tools
and machinery used to
produce a good or service.
Entrepreneur: is the individual
who takes an idea and attempts to
make an economic profit from it by
combining all other factors of
production.
5. Marketing: By utilizing strategies like sales
techniques, business communication and business
development, companies generate interest
amongst customers in their products.
6. Economic system
• Business Cycle (or Trade Cycle) is divided into the
following four phases :-
1. Prosperity Phase : Expansion or Upswing of
economy.
2. Recession Phase : from prosperity to recession
(upper turning point).
3. Depression Phase : Contraction or Downswing of
economy.
3. Recovery Phase : from depression to prosperity.
8. 1. Prosperity Phase
• When there is an expansion of output,
income, employment, prices and profits, there
is also a rise in the standard of living. This
period is termed as Prosperity phase.
9. features of prosperity
• High level of output and trade.
• High level of effective demand.
• High level of income and employment.
• Inflation.
• Large expansion of bank credit.
• Overall business optimism.
Due to a high level of economic activity , it
causes a rise in prices and profits
10. 2. Recession Phase
• The turning point from prosperity to depression is termed as
Recession Phase.
• the economic activities slow down.
• demand starts falling
• the overproduction and future investment plans are given up.
• There is a steady decline in the output, income, employment, prices
and profits.
• The businessmen lose confidence.
• It reduces investment.
• Expansion of business stops, stock market falls.
• Orders are cancelled and people start losing their jobs.
• Generally, recession lasts for a short period.
11. 3. Depression Phase
• When there is a continuous decrease of
output, income, employment, prices and
profits, there is a fall in the standard of living
and depression sets in.
12. features of depression
• Fall in volume of output and trade.
• Fall in income and rise in unemployment.
• Decline in consumption and demand.
• Deflation.
• Contraction of bank credit.
• Overall business pessimism.
The aggregate economic activity is at the lowest,
causing a decline in prices and profits
13. 4. Recovery Phase
• The turning point from depression to expansion is termed
as Recovery or Revival Phase.
• there are expansions and rise in economic activities.
• demand starts rising, production increases and this causes
an increase in investment.
• There is a steady rise in output, income, employment,
prices and profits.
• The businessmen gain confidence.
• There is an increase in employment, production, income
and aggregate demand, prices and profits start rising, and
business expands.
• Revival slowly emerges into prosperity, and the business
cycle is repeated.
14. Thalidomide
• Thalidomide was developed by German
pharmaceutical company Chemie
Grünenthal (now Grünenthal GmbH)
• obtaining a twenty-year patent in April 1954.
• Researchers at Chemie Grünenthal also found
that thalidomide was a particularly
effective antiemetic that had an inhibitory
effect on morning sickness
15. • In November 1961, thalidomide was taken off the market
due to massive pressure from the press and public.
• Experts estimate that the drug thalidomide led to the death
of approximately 2,000 children and serious birth defects in
more than 10,000 children.
• Thalidomide became one of the most successful
prescription drugs in the history of medicine In the UK, the
British pharmaceutical company The Distillers Company
(Biochemicals) Ltd, a subsidiary of Distillers Co. Ltd. (now
part of Diageo plc), marketed thalidomide under the brand
name Distaval® as a remedy for morning sickness
throughout the United Kingdom, Australia and New
Zealand.
16. • In the late 1950s and early 1960s, more than
10,000 children in 46 countries were born
with deformities such as phocomelia as a
consequence of thalidomide use
17. • The drug's UK manufacturer, Distillers Biochemicals,
paid around £28million compensation in the 1970s
following a legal battle by the families of those
affected.
• In January 2010, the Government finally apologized,
expressing its 'sincere regret and deep sympathy' to
the victims of the thalidomide scandal.
• Today, thalidomide is being marketed
by Celgene mainly as a treatment of certain cancers
(multiple myeloma) and of a complication of leprosy.
18. Pharmacoeconomics
• PE show how limited resources can be used
most efficiently and effectively.
• PE analysis efficient allocation of limited
resources among competing alternative
medications and services.
• Most of the economic crises comes from
Scarcity of resources.
19. scarcity
• Means that available resources are insufficient
to satisfy all wants and needs.
• There will be no economic crises when there is
absent scarcity and alternative uses of
available resources.
20. The revolution leads to
• Increased cost
• Increased number of alternatives available to
treat illness and disease.
• Growing demand for pharmaceuticals
• High cost biotechnology products.
• Limited resources.
