Global Pharmaceutical Industry-Overview and Succes

Topics: Pharmaceutical industry, Generic drug, Drug development Pages: 13 (4463 words) Published: November 24, 2011
GLOBAL P HARMACEUTICAL I NDUSTRY : O VERVIEW & S UCCESS F ACTORS A closer look at the factors affecting growth and development

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Global Pharmaceutical Market: Overview

1. Indust ry 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 The global pharmaceutical industry is estimated to be about 50. This report gives a brief end of 2010 with a growth rate of description on the global pharmaceutical market’s size, around 5 to 6 percent. 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.

is expected to reach $830 billion by

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Global Pharmaceutical Market: Overview 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.

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Global Pharmaceutical Market: Overview

2. Critical Success Factors
2.1. Major Facto rs Affecting G rowth The growth of the market is expected to be largely driven by new product launches; especially those of branded drugs. The growth rate is expected to reach its peak by 2014, after which it is expected to stagnate with fewer new product launches. R&D is among the foremost major factors that decides the magnitude and effectiveness of the growth of the industry. Research is a multimillion dollar exercise that is typically spread out over a decade, if not longer. Although many new medical and chemical substances might be discovered from time to time, only a minute fraction of them proves … U.S. industries have al ways sp ent to be commercially and between 15-22% of thei r sales rev enues...

Bibliography: 1. T he Phar m Ex ec 50 2. T he Phar maceut ical industr y in t he G lobal E conomy (Su mmer 2005); Lar r y Davids on and G enna diy Gr eb lov, I ndia na Univer s it y, K elley School of Bus iness, Bloomingt on, I ndia na. 3. Guida nce f or I ndustr y P AT — A Fr amewor k f or Innovat ive Phar maceut ica l D evelop ment, Manufactur ing, and Qua lit y Assur a nce; USFD A. 4. How P har maceut ical Compa nies Can Succeed In E mer ging Mar kets; Abbas Hussain, Apr . 28 t h 2010, Har var d Bus iness Review 5. E mer ging Clinical Sit es : I ndia & China; Patr ycja Doba, Clinica l R es ear ch Coor dinat or , Nutr aceut ica l M edica l Res ear ch LLC. 6. RFID in Phar maceut icals - Supp ly Chain S ecur ity C oncer ns Pr ovide I mp etus f or RFID Adopt ion; GBI R es ear ch, R ef : G BIHC013MR 7. Res ear ch and D ev elop ment in t he P har maceut ica l I ndustr y; T he Congr ess of t he Unit ed Stat es Congr ess iona l Bu dget Off ice, (Oct ob er 2006 ).
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