The case of the pharmaceutical industry in France and Belgium




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1 Powell and Snellman note that analyses emphasize the central role of new science-based industries in the development of capitalism since the 1960s (2004, p. 200).

2 Researches cast doubt on such analysis, stressing the heterogeneity of institutional structures and companies that carry innovation (Boyer, 2004; Amable Petit, 2003), while others insist on the diversity of sources of profit in each economic sector (Freyssenet, 2009).

3 From 1970 till 2007, the turnover of the drugs produced in France increased by 114% in constant euros (it passed from 1,976 M€ to 44,671M€ in current prices).

4 From 1970 till 2007, the consumption of drugs in France increased, and the proportion of manufactured drugs exported grew from 15% in 1975 to 45% in 2007.

5 Agreement of January, 1994 between the State and the pharmaceutical enterprises: The State accepts rises in prices in exchange for a limitation in the growth of the volumes of sale and the promotion of drugs in France.

6 We will investigate here only drugs for humans, and not for animals.

7 I will consider here only the major actors of the sector, as I could add other actors such as the public institutions of research, the suppliers for the production industry, patients' associations, etc.

8 Source: LEEM (French federation of pharmaceutical industries). Workforce amounted to 64,257 persons in 1975 (SNIP, 1971). It is the same with the workforces in pharmacies. The counting of the workforce of this sector is not simple because the historic series does not take into account the same perimeters (for example, include or not the production of pharmaceutical compounds) and it is difficult to account for the subcontracting structures (of R&D, of pharmaceutical sales representatives, etc.).

9 Between 1976 and 2004, the industry lost around 35% of jobs whereas the production sector for drugs increased by about 20% (Source: UNEDIC).

10 In France, the baccalauréat means the end of upper secondary school and authorization for entry into university. It can be in theoretical specialities or in technical/vocational domains.

11 In France, the pharmaceutical industry is the sector in which the proportion of staff in R&D is equal to the proportion within the telecommunications sector, nationally both sharing the dominant position (Source: Ministry for Higher Education and Research, 2006).

12 This phenomenon is observed in all the European countries (Vekeman, 2005). In France, the high level of salaries is connected with the big size of companies and the fact that the trade unions followed the example of the chemical sector where salaries are high. We can also think that these big companies, partly controlled by institutional investors (Montalban, 2007), join a model where the profits are shared between the shareholders and the well-paid employees (Vitol, 2004).

13 The case of hospital pharmacies is not presented here.

14 The Public Service Obligations are different across the European countries. In France, full-liners have to retain in stock 90% of the drugs sold in the country and to be able to deliver them in a maximum of 24 hours.

15 The distribution staff numbers 14,000 persons, 108,000 in production and 128,000 in pharmacies.

16 In France, the State determines the price of drugs, rates of refund by public healthcare and the distribution of the gross margin.

17 In 2005, in a Belgian cooperative that I observed, the pharmacists received on average € 17,246 p.a.

18 Sources: INSEE; CSRP; annual reports 1983-1995 of the commission of the full-liners (archives FUC-CFDT).

19 Interviews with Jacques Buxereaud (Coordinator of the Master's degree since 1987) and Catherine Fagnère (Coordinator of the Master's degree since 2004), Limoges, 12/2009; interview with Olivier Le Guisquet (representative of the employers’ association of wholesalers 1970-2003), 2-3/2009.

20 Visits of the warehouse of Saint-Ouen OCP, 5/2005 and 6/2009.

21 Interview with Régis Lelièvre (central representative of FO trade-union at Alliance Healthcare), 5/2009.

22 For example, La Pharmacie Laborieuse, n° 181, 1968; circular FUC CFDT 3/1974 (archives FUC-CFDT (1F116)).

23 Circulars to the persons in charge of the pharmaceutical distribution, on October 6th, 1976 (archive FUC-CFDT (1F271)); La Dépêche du Midi, 26/8/1993.

24 Jacques Petit, « Données pour une politique de la répartition », 1982, 26 p. (archives FUC-CFDT (14F24)).

25 « CFTC Phar’Labor », January 1961 (archives FUC-CFDT (1F242)) ; « Chimie militants », April 1973 (archives FUC-CFDT (1F270)).

26 Negotiations on the reduction of working time in the pharmaceutical distribution (1988-1992) (archive FUC-CFDT (4F20.))

27 Interview with Philippe Beaugendre (Human Resources Director, CERP), 2/2009.

28 Between 1990 and 1994, when the proportion of part-time jobs increased, the wholesalers brought about 2,800 lay-offs (Source: CSRP, Commission 1995).

29 Unlike the French entreprises, Pharmaco always outsources the delivery.

30 Source: PV of the Board of Directors (1962-2007) and interviews with administrators.

31 Today, in France, 75% of the orders delivered by the distributors in France contain only a single product (Source: CSRP).

32 Certain products are heavy (syrups for example) or bulky waste (powders, food for animals,…).



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