Douglas C. Manditch, president and chief executive of the company, said that the decreased profitability was the result of several factors, including the low interest rate environment and the overall economy.
Reduced patent life and overall decreased profitability of newly discovered drugs are also forcing the pharmaceutical industry to shorten the drug development time with maximum throughput.
Analysts, while acknowledging the Federal Reserve's support for U.S. broker-dealers boosts confidence in capital markets, said negative outlooks for independent securities firms are appropriate since the potential for decreased profitability is still substantial.
And even though the intention was to delegate work and increase effectiveness, the increased complexity (and lack of proper communication) actually causes more work and decreased profitability.
Local managers were directed to close the plant and prepare it for sale in July 1984 due to decreased profitability [ 3].
The most frequently mentioned constraints included rapidly decreasing profitability of the low income country ARV market, difficult market entry, and limited access to reliable forecasting information.
Elaborating on the rapidly decreasing profitability, they stated that the prices for first line ARV drugs "are at the bottom"; with average portfolio gross margins at 5 to 8percentt.
Moreover, excessive loan growth adversely affects bank interest income which decreases the profitability.
One of the reasons is that foreign exchange market decreases the profitability and as well as stock prices of the firms.
"This is a direct result of the decrease in profitability," he said, "and one has to wonder how long the company can sustain this".
