World Pharmaceutical Market

Report Highlights

• The world pharmaceutical industry stood at $592 billion in 2003, or 24% of the healthcare sector. Rising at an average annual growth rate (AAGR) of 8.8%, this market is expected to reach $938 billion in 2008.
• Ethical pharmaceuticals account for 74% of the market. This sector is under increasing pressure from generics and biopharmaceuticals.
• The generic industry is expected to increase its penetration in the world market to 7% by 2008, reaching $64 billion.
• Ten geographical markets account for 70% of the ethical sector.
• Biopharmaceuticals are growing at double the rate of the ethical sector.

INTRODUCTION

Though the pharmaceutical industry remains one of the most profitable and stable industries, several macrolevel variables are influencing fundamental changes in the industry structure. The chief reasons are: the increasing role of substitutes and the generic pharmaceuticals threat; the threat of new entrants including the emergence of bio-pharmaceuticals and the genome revolution; increasing buyer power, i.e., power of third-party payers, government buyers and health maintenance organizations, and increased health awareness among patients, and government buyers; and changing suppliers such as enhanced outsourcing, in-licensing, contract research and manufacturing activities. Additionally, changing world demographics (increasing graying of world population), stringent regulatory environments, declining R&D productivity, worldwide compliance to General Agreement on Tariffs and Trade (GATT) and Trade-Related Aspects of Intellectual Property Rights (TRIPS) and emergence of e-pharmaceuticals are likely to reshape the industry.

This BCC report analyzes the current status of the world pharmaceutical markets and assesses the growth potential of the industry. The study evaluates the competitive forces governing the industry, i.e., buyers (patients, HMOs, PBMs, retailers, insurance firms, patient groups), suppliers (CROs, supply chain, contract manufacturers), substitutes (generics) and new entrants (biotechnology). In addition, the report analyzes research and development, export-import profiles and pricing, reimbursement and regulatory environment in the industry.

Specifically, this study analyzes the impact of four forces on the industry structure, sector-wise demand patterns and competitive environment. Finally, a comprehensive analysis of the worldwide pharmaceutical industry and its future direction is presented.

SCOPE OF STUDY

The report contains:

• Analysis of four sectors of the world pharmaceutical industry and major geographical markets: ethical, generic and OTC pharmaceuticals and biopharmaceuticals
• Analysis of the forces affecting the world pharmaceutical markets: buyers, suppliers, substitutes and new entrants
• Determination of their impact on market demand and growth
• Growth forecasts through 2008
• Detailed profiles of 25 leading pharmaceutical world markets
• R&D profiles, export-import profiles, pharmaceutical distribution and pricing, and reimbursement and regulation updates.

METHODOLOGY

BCC, Inc. presents a comprehensive analysis by each pharmaceutical sector and geographical market in 2003. Our estimated value is based on the historical average growth rate of the industry in U.S. dollars. The market data for each country is converted in the U.S. dollar market based on the average yearly exchange rate between the country's currency and the U.S. dollar.

INFORMATION SOURCES

BCC, Inc. collected the information from various sources. BCC, Inc. surveyed various companies' databases, industry association databases, industry publications, and trade associations. In addition, we have complied data from current financial and trade information and government sources.

AUTHOR'S CREDENTIALS

Meghna Mehta is an experienced pharmaceutical industry professional with over 8 years' experience in pharmaceutical brand management and consulting. Meghna has handled various therapy areas in her career including HIV/AIDS, anti-peptic ulcerants and pain management. She has also held development positions in her career. Meghna has special interest and expertise in Asian pharmaceutical markets. Additionally, she has also assisted brand development consulting assignments for mid-sized pharmaceutical companies in the U.S.