Global pharmaceutical industry
The global pharmaceuticals market is worth US$300 billion a year, a figure expected to rise to US$400 billion within three years. The 10 largest drugs companies control over one-third of this market, several with sales of more than US$10 billion a year and profit margins of about 30%. Six are based in the United States and four in Europe. It is predicted that North and South America, Europe and Japan will continue to account for a full 85% of the global pharmaceuticals market well into the 21st century. Companies currently spend one-third of all sales revenue on marketing their products - roughly twice what they spend on research and development.
Moreover, as per "Global Pharmaceutical Market Forecast” few things came into focus related to global pharmaceuticals market which are as follows:
- Growing at a CAGR of around 8%, the global pharmaceutical market is forecasted to reach US$ 1043.4 Billion in 2012.
- North America remains the largest pharmaceutical market constituting 42.8% of the global sales in 2007. Growth in the region is however expected to slow down in near future owing to patent expiration of key drugs and increased prevalence of generics.
- In Europe, growth in the top five markets is expected to remain sluggish in next five years. Emerging markets in Central and Eastern Europe is however expected to drive growth in future.
- A large untapped population and strong economic growth in major countries is expected to make Asia-Pacific the most lucrative pharmaceutical market in future.
- Growth in the Latin American markets is expected to be strong with Brazil and Mexico amongst the most emerging pharmaceutical markets in the world.
- Dwindling drug pipelines and patent expiration of a number of blockbuster drugs may challenge the growth of global pharmaceutical market in future.