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Green Templeton College | Oxford

The origin and evolution of the pharmaceutical industry

The modern pharmaceutical industry has its origins in the coal tar industry that arose in German speaking lands in the mid-nineteenth century, and which in turn gave rise to the dye-stuff industry, from which many companies, including Hoescht, Bayer, Ciba and Sandoz, orginated. These developments were a consequence of, and also a further spur to,  the professionalisation of science, particularly chemistry;  the rise of scientific research both within and outwith industry; and advances in technology and mass-production. Many of these innovations were copied in the United States by emerging companies such as Merck, Wyeth and Parke Davis & Co.

In Britain the expansion of the railways facilitated the nationwide distribution of goods and advertising, prompting a consumer revolution and the rise of the commercial 'brand'.  Pharmaceutical preparations, whether from chemical companies such as Allen & Hanburys or  patent pill manufacturers such as Beechams, were a noticeable part of this boom.  In 1880, Burroughs Wellcome & Co. was established by two American trained pharmacists who introduced American style marketing and manufacturing methods, and  created a research laboratory within the company, the first of its kind in the country.

During the first world war, Burroughs Wellcome & Co. was alone in being able to supply many much needed drugs for military use, and other companies learned from this example. Several, including May & Baker, Nathan & Sons (Glaxo), and British Drug Houses developed research laboratories in the immediate post-war period, often employing Burroughs Wellcome & Co' staff to do so.  By the second world war, there were half a dozen major companies with research capacities, although these were limited and they had to co-operate in consortia such as the Insulin Manufacturers (to produce insulin) , and the Therapeutic Research Corporation (to produce penicillin).

Post war reconstruction, and the demands of the new National Health Service, further stimulated the pharmaceutical industry. Many new therapies were developed, often by 'rational design' based on increased knowledge of the underlying cellular mechanisms of drug actions. By the 1970s, this discovery boom was passing, one estimate showing over the decade a drop in the introduction of new drugs from 70 to 20 a year. In the final decades of the twentieth century mergers and take-overs created  huge multi-national companies; product diversification lessened their reliance on medicinals; and smaller biotechnology companies developed to accept the challenges of pharmaceutical development in the genomic age.

This talk will trace the evolution of the modern pharmaceutical industry from the mid nineteenth century to the final decades of the twentieth century.  The strong focus on British companies will not be exclusive, and a large cast of characters including manufacturers, doctors, scientists and patients will be considered. Several themes will be explored, including the role of innovation in relation to production technology, marketing and advertising, and in particular in pharmaceutical research and drug discovery.  The impact of legislation will be examined with respect to animal experimentation, standardisation and drug safety. These changes will be discussed against a background of scientific advances, clinical developments and patient expectations.