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The Development of the Pharmaceutical Industry, 1818–90

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Medical Science and Medical Industry

Part of the book series: Studies in Business History ((STBH))

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Abstract

The foundation for the pharmaceutical industry in the United States was laid in Philadelphia between 1818 and 1822 with the establishment of half a dozen enduring fine chemical manufacturers.1 America had formerly been dependent on Britain for most of its medicines, as for other manufactured products. With the economic disorder created by the war of 1812 and its aftermath, this pattern of dependence was broken. Since importation was disrupted and high tariffs were levied on those goods which did get through, it became easier and more profitable to manufacture many products than to ship them from England.2

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Notes

  1. In this short period of growth after the economic disruption of the war of 1812–15, coupled with the decline in British commerce as a result of the Napoleonic Wars, a large number of manufacturing firms were established, including the predecessors of some of the major chemical manufacturers of the end of the century. Three companies later to form the Philadelphia base of Sharp and Dohme (subsequently Merck and Company) date from this period: Farr and Kunzi (1818), Powers and Weightman (1818) and Rosengarten and Sons (1821/22). The Marshall Drug Store, which had been established at the end of the previous century, grew into a manufacturing house at this time and led a wave of conversions from retail pharmacies to wholesale and manufacturing businesses, and Charles V. Hagner operated a ‘drug mill’ starting in 1812, but it was not until 1817 that he began producing his more significant products, verdigris and white lead, for which he received process patents in that year. John and Daniel Elliott began their fine chemical manufacturing in 1819. See: J. Thomas Scharf and Thompson Westcott, History of Philadelphia 1609–1884 (Philadelphia: L. H. Evans, 1884) p. 2234;

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  2. John J. MacFarlane, Manufacturing in Philadelphia 1683–1912 (Philadelphia: Philadelphia Commercial Museum, 1912) pp. 63–4.

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  3. See also Edward Kremers and George Urdang, History of Pharmacy, 4th ed. (Philadephia: Lippincott, 1976) pp. 181–212, 226–31, 326–35;

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  4. and John Thomas Mahoney, The Merchants of Life. An Account of the American Pharmaceutical Industry (New York: Harper, 1959) pp. 30–1.

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  5. The best general source on pharmacy in Philadelphia is Joseph W. England (ed.) The First Century of the Philadelphia College of Pharmacy 1821–1921 (Philadelphia: Philadelphia College of Pharmacy, 1922).

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  6. In aggregate, the profits of drug makers have been high during the entire period over which the US census has counted income. United States Bureau of the Census, Ninth Census of Manufacturers (Washington: US Census Office, 1880).

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© 1987 Jonathan Liebenau

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Liebenau, J. (1987). The Development of the Pharmaceutical Industry, 1818–90. In: Medical Science and Medical Industry. Studies in Business History. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-08739-6_2

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