Global Govertnmentshare in Pharma

Tendering & Contracting for generic & branded medicines across Europe – a comparison and benchmarking
Birmingham, November 2011 Nico Bacharidis

Globally, Tenders & Contracts cover more than half of the Gx market, and also affect around 14% of the patented pharma market . In Mature markets the share of tenders - both patented and protected – is a bit lower.
•Estimated Size1) of Tendered and Contracted Pharma Market ($bn)
•27% of total pharma •$210bn 767 160 Tendered Contracted 141 Generics Total Gx Mar ket

•Tendered and Contracted Market by Gx and Patented
($bn)

210

•Over 50% of the global Generics market is tendered
•(52%) 141
129

•USD billions, 2009

52

270

•(67%)

Tendered or

Contracted Not Tendered

555

Not tendered

•~14% of the global Patented market is tendered
69 Patented •(14%) Total Patent 428 69 497 ed Mar ket Tendered or ContractedTendered Not

•(33%)
Total global market USD bn

•Source: Booz & Company analysis, IMS Data, Expert market interviews in 19 markets worldwide

2

The share of generics, as well as tendering and contracting is significantly higher in Emerging Markets than in Mature markets (Western Europe). We expect both to grow in Western Europe over the coming years.
•% Market Tendered •Mature vs. Emerging Markets
•(2009)

•% Generic Value Share •Mature vs. Emerging Markets
•(2009) 181 585
27% 62%

•$bn Projected Growth •Mature vs. Emerging Markets
+2% •(2009)

100%

•CAGR
640 585

16% 7% 36% Tendered

Generics

158

196

•CAGR
+11% 310

6%

Contracted

77% 57% Not tendered

73% 427 38% Patented 445 181 112

144 Generics

167 Patented 69 Average mature markets Average Emerging markets Average mature markets Average Emerging markets 2009 2014 •Mature Markets Forecast 2009 2014 •Emerging Markets Forecast

•Source: Booz & Company analysis, IMS Data, Expert market interviews in 19 markets worldwide • Data extrapolated for MM region based on data from