global pharmaceutical industry-overview

ProText Knowledge Services

GLOBAL PHARMACEUTICAL

INDUSTRY: OVERVIEW

A closer look at the market drivers, major

players and factors affecting growth and development

Global Pharmaceutical Market: Overview

© ProText Knowledge Services 2010 1

Index

1. Executive Summary

2. Industry Overview

2.1 Global pharmaceutical market 2.2 Segmentation of the market 2.2.1 Geographic segmentation 3.2.2 Therapeutic segmentation 3.3 Major therapeutic classes 3.4 Major products 3.5 Demand–supply 3.6 Trends shaping the pharmaceutical industry 3.7 Conclusion 3.8 Bibliography

4. Growth Drivers

4.1 Introduction 4.2 Major growth drivers 4.3 Conclusion 4.4 Bibliography

5. Issues and Challenges

5.1 Introduction 5.2 Major issues and challenges 5.3 Conclusion 5.4 Bibliography

6. Technology

6.1 Introduction 6.2 Technology in drug development 6.3 Technology in drug delivery 6.4 Technology in manufacturing 6.5 Technology in marketing 6.6 New technologies 6.7 Conclusion 6.8 Bibliography

7. Major Markets



7.1 Introduction 7.2 US Market size and Market segmentation 7.3 Japan Market size and Market segmentation 7.4. Europe Market size and Major markets 7.5. UK Market size and Market segmentation 7.5 Emerging markets 7.5.1 Mexico 7.5.2 Brazil 7.5.3 China 7.5.4. India 7.6 Conclusion 7.7 Bibliography

8. Major Players

8.1 Pfizer 8.2 Johnson & Johnson 8.3 Glaxo SmithKline 8.4 Sanofi-Aventis 8.5. Novartis 8.6.Roche 8.7 AstraZeneca 8.8 Merck 8.9 Abbot Laboratories 8.10 Eli Lilly 8.11 Conclusion 8.12 Bibliography

9. Regulatory Aspects

9.1 Introduction 9.2 Regulatory bodies 9.2.1 US 9.2.2 European Union 9.2.3 Japan 9.3 Laws governing the industry 9.3.1 Regulations in the US 9.3.2 Regulations in Japan 9.3.3 Regulations in Europe 9.4 International agreements on intellectual property rights protection 9.4.1 General Agreement on Tariffs and Trade (GATT) 9.4.2 Trade Related Aspects of Intellectual Property Rights (TRIPS) 9.4.3 The Paris Convention (PCPIP) 9.4.4 The Patent Co-operation Treaty (PCT) 9.5 Prolonging Patent Protection



9.5.1 GATT and TRIPS 9.5.2 The Waxman-Hatch Act 9.6 Recent regulatory amendments 9.6.1 US 9.6.2 EU 9.6.3 Japan 9.7 Conclusion 9.8 Bibliography

10. Mergers & Acquisitions

10.1 Introduction 10.2 M&A drivers 10.3 M&A trends 10.4 Top 10 M&A deals (2007, 2008 and 2009) 10.5 Conclusion 10.6 Bibliography

11. Critical Success Factors

11.1 Introduction 11.2 Success factors 11.2.1 Alliances and acquisitions 11.2.2 Outsourcing to low cost destinations 11.2.3 Absorption of technological innovations 11.2.4 Improving sales force effectiveness 11.2.5 Critical mass 11.2.6 Need for blockbuster drugs 11.3 Conclusion 11.4 Bibliography

12. Future Outlook

13. Bibliography



2. Industry Overview

The pharmaceutical industry of the world develops and markets medicines prescribed for patients by medical practitioners. The U.S., U.K and European pharmaceutical companies are the major ones of the industry. The total number of major pharmaceutical companies (annual revenues USD 1,000 million and above) worldwide is estimated to be about 50.

This report gives a brief description on the global pharmaceutical market’s size, trends, issues, challenges and critical success factors etc. The report also elaborates on the profile of the major players in the global pharmaceutical market.

The global pharmaceutical industry is expected to reach $830 billion by 2010 with a growth rate of around 5 to 6 percent. While the pharmaceutical industry in regions like Latin America, Europe and Japan is growing at a steady rate which is more are less equal to that of the overall industry, the developing regions like China and India are recording corresponding growth in double figures. Industry analysts predict that the pharmaceutical market would reach $1.1 trillion by 2015 with the average growth rate of around 7 percent.

United States is still the largest pharmaceuticals market in the world with a market size of around $300 billion and it is expected to reach $370 to $390 billion by 2015. The developing countries like China, India and Brazil still need to go a long way to reach the level of operations of the developed countries. As the developing countries are growing at the rate of 15 to 16 percent, there is a huge scope for the development of generic drugs there.

The global pharmaceutical industry

is expected to reach $830 billion by

end of 2010 with a growth rate of

around 5 to 6 percent.



Pharmaceutical companies like Pfizer, GSK and Novartis are spending more than $5 billion towards research and development. Pfizer takes first place in the race as it spent around $6 billion on R&D in the year 2009 mainly on preclinical testing, lab testing and clinical trials. Introducing an innovative drug is not an easy task in the pharmaceutical sector if spending money on lab testing and clinical trials is not on prolific. Most of the major companies spend around $1 billion for more than eight years to research the drug. So, R & D investment is a prime cost-factor for pharmaceutical companies.

Five-Year Growth Rate Chart

The growth rate from here on will be interesting given that while the industry fears loss of revenue owing to patent expiries beginning 2011, the healthcare industry is projecting increased drug consumption because of the healthcare reform laws made by the U.S. government. There are bound to be questions on the profitability of pharmaceuticals notwithstanding the higher number of consumers, as the new laws impose discounts and rebates while also providing for increase in industry fees.

global pharmaceutical industry-overview

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