PHARMACEUTICAL INDUSTRY

The pharmaceutical industry in the United States dates back to the early 1800s. Opium was routinely prescribed in the United States as far back as the eighteenth century; however, concoctions known as "patent medicines" did not make an appearance until the nineteenth century. Patent medicines became very popular; they bore names such as "Carter's Little Liver Pills." During this time many pharmaceutical companies were founded in the Midwest, including Parke Davis, Eli Lilly, and Upjohn Company.

As the industry developed, New York City was an important center of trade in drugs; Philadelphia also emerged as a home for about six pharmaceutical manufacturers. Pharmacy schools, which began to open in several states between 1821 to 1859, probably contributed to the growth of the pharmaceuticals industry. (The American Journal of Pharmacy began publication in 1825.) Another probable factor in the growth of the industry was the prodigious amount of drugs used during the American Civil War (1861–1865). By 1870 there were almost 300 pharmaceutical manufacturers in existence.

During the early nineteenth century, several new drugs quickly came into common use. Some of these were opiates, which were later greatly restricted during the twentieth century. Morphine was first commercially produced in the 1830s. After the invention of the hypodermic needle in the 1860s, morphine use became more widespread as it could be easily injected into the patient. Another (subsequently) restricted drug, cocaine, was first commercially produced in the 1880s. When it was first introduced, it became very popular— physicians thought that it was harmless. (Until it was found to be addictive, cocaine was even used as an ingredient in the soft drink Coca-Cola.) In 1898, another opiate, heroin, was commercially available from the Bayer Company.

The dangers of opiates were not acknowledged until the 1900s, in part because there were no laws regulating the drug industry until the 1870s and 1880s. The Pure Food and Drug Act of 1906, the Shanghai Opium Convention of 1909, The Hague Opium Treaty, and the Harrison Narcotic Act (both in 1912) were all early attempts by the U.S. government to regulate drug manufacturing and distribution.

Several advancements in drug production were developed during the late nineteenth century which furthered development of the industry. Pharmaceutical manufacturers attempted to standardize batches of medicines between the various companies. In 1888 another improvement came in the form of a machine that produced pills of uniform dose and purity. Later, during the early twentieth century over-the-counter drugs were developed and marketed. Products, such as aspirin and laxatives, greatly increased the availability of medicines to the general public.

Following World War I (1914–1918) demand influenced the rapid commercial expansion of the pharmaceuticals industry. The number of chain drugstores increased during the 1920s and, as the industry grew, it consolidated; several drug companies merged. By the 1930s, market research became important in the industry; consumers wanted new medicines that could help two or more symptoms at a time. Sulfa drugs, designed to fight bacteria, were also developed during this period and became the choice for treatment of infections until the mid-1940s, when penicillin was commercially developed and marketed.

In 1937 over 100 Americans were killed when treated with a drug that had a toxic solvent in it. This resulted in stricter governmental regulations to improve drug testing. Changes included passing the Food, Drug, and Cosmetic Act of 1938, which was enforced by the Food and Drug Administration (FDA).

World War II (1939–1945) caused an upsurge in demand for the new antibiotic drug, penicillin, which was first marketed in 1946. (The major producer of penicillin was the Pfizer Company.) New medicines continued to appear after the war. Almost 500 new drugs entered the market between 1950 and 1959. With this expansion came advanced marketing tactics— pharmaceutical companies began to advertise drugs on television. As the pharmaceutical market grew, so increased the level of government regulation. In the 1950s and 1960s several new FDA laws were passed to further regulate the testing, certification, and prescription of drugs.

In the mid-1980s, the FDA was reorganized due to allegations of deficient practices. One issue examined by the reorganized FDA was the use of generic drugs, which, according to "The American Druggist," accounted for almost 45 percent of all prescriptions by the mid-1990s.

In the 1990s the pharmaceutical industry focused on the research and development of new drugs, especially drugs for treating diseases common to an elderly population, as well as cancer and AIDS. Biotechnology began to make an impact in the drug industry, as companies such as Amgen, Inc., and Chiron Corporation were founded. Competition resulted in the merging, restructuring, and downsizing of many pharmaceutical companies.

PHARMACEUTICAL INDUSTRY

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