INTRODUCTION

success in the international pharmaceutical industry today is built on the discovery of new and better drugs for the treatment and cure of disease and their introduction to markets across the world. New drugs must be sold worldwide, since no company can fully exploit a patented product, recouping its research and development costs solely in its own home market, even in the two largest national markets, the USA and Japan. The ability of any company to innovate successfully largely depends on its resources although there is also an element of serendipity in the discovery of new drugs. Successful penetration of world markets depends on the product and its skilful marketing to secure maximum returns which, in turn, will finance further research and development.

The history of the British pharmaceutical industry and the growth of its research and development capability, to take a not insignificant place in the international industry in the late twentieth century, can conveniently be considered in three periods since the late nineteenth century. The divisions are marked by the two world wars, each of which gave a stimulus to research and development as well as bringing significant technological and organizational change to the industry and to individual players in it.