Definition

Global Pharma Market is the total value of Pharmaceutical Formulations in the world sold at the retail level to the final consumers.

Why we should know?

To know the pharmaceutical market potential country wise, therapeutic category wise, product wise etc., so that we can make appropriate choices and decisions to achieve company objectives.

Sources of data:

Various data such as Health care, Disease pattern, regulatory data, etc., can be obtained from
Respective Ministries of Health portals given below (Click on hyperlink):

Country Ministry of Health
 Afghanistan Ministry of Public Health
http://moph.gov.af/
Algeria Ministère de la Santé, de la Population et de la Réforme Hospitalière
http://www.sante.gov.dz/
Andorra Ministeri de Salut i Benestar
http://www.salutibenestar.ad/
 Angola Ministério da Saúde
http://www.minsa.gov.ao/
Anguilla Ministry of Social Development
http://gov.ai/ministry.php?id=2
Antigua and Barbuda Minister of Health, Sports and Youth Affairs
http://www.ab.gov.ag/gov_v2/governemnt/
Argentina Ministerio de Salud de la Nación
http://www.msal.gov.ar/htm/site/default.asp
Armenia Ministry of Health
http://www.moh.am/
Australia Australian Department of Health and Aged Care
http://www.health.gov.au/
 Austria Bundesministerium für Gesundheit
http://www.bmgfj.gv.at/
 Azerbaijan Ministry of Health
http://www.mednet.az/
 Bahamas Ministry of Health
http://www.bahamas.gov.bs/bahamasweb2/home.nsf/vContentW/MOHE–
Welcome–MOHE+Homepage!Opendocument
 Bahrain Ministry of Health
http://www.moh.gov.bh/
 Bangladesh Ministry of Health and Family Welfare
http://www.mohfw.gov.bd/
 Belarus Minister of Health
http://minzdrav.gov.by/
Belgium Santé publique, Sécurité de la Chaîne alimentaire et Environnement
Belize Ministry of Health
http://minzdrav.gov.by/
Benin Ministère de la Santé
http://www.ministeresantebenin.com/
Bhutan Ministry of Health
http://www.health.gov.bt/
Bolivia Ministerio de Salud y Deportes
Bosnia and Herzegovina Federal Ministry of Health
http://www.fbihvlada.gov.ba/english/ministarstva/zdravstvo.php
Botswana Ministry of Health
http://www.moh.gov.bw/
Brazil Ministério da Saúde
http://portal.saude.gov.br/saude/
Brunei Ministry of Health
Darussalam http://www.moh.gov.bn/
Bulgaria Ministère de la santé
http://www.sante.gov.bf/SiteSante/index.jsp
Burundi Ministère de la Santé Publique et de la Lutte contre le SIDA
http://www.minisante.bi/
Cambodia Ministry of Health
Cameroon Ministère de la santé publique
http://www.minsante.cm/
Canada Health Canada
http://www.hc-sc.gc.ca/
Cape Verde Ministério da Saúde
http://www.minsaude.gov.cv/
Cayman Islands Ministry of Health, Environment, Youth, Sports and Culture
http://www.gov.ky/portal/page?_pageid=1142,1594292&_dad=portal&_schema=PORTAL
Chile Ministerio de Salud
http://www.minsal.cl/portal/url/page/minsalcl/g_nuevo_home/nuevo_home.html
China Ministry of Health
http://www.moh.gov.cn/publicfiles//business/htmlfiles/wsb/index.htm
Colombia Ministerio de la Protección Social
http://www.minproteccionsocial.gov.co/Paginas/default.aspx
Cook Islands Ministry of Health
http://www.health.gov.ck/
Costa Rica Ministerio de Salud
Croatia Ministry of Health and Social Welfare
http://www.mzss.hr/
Cuba Infomed, Portal de Salud de Cuba
http://www.sld.cu/
Cyprus Ministry of Health
http://www.moh.gov.cy/moh/moh.nsf/index_en/index_en?OpenDocument
Czech Republic Ministry of Health
http://www.mzcr.cz/
Côte d’Ivoire Ministère de la Santé et de l’Hygiène Publique
http://www.sante.gouv.ci/
Democratic Republic of Congo Ministère de la Santé Publique
http://www.minisanterdc.cd/fr/
Denmark Ministry of Health and Prevention
Dominica Ministry of Health and Environment
http://www.dominica.gov.dm/cms/index.php?q=node/21
Dominican Republic Secretaría de Estado de Salud Pública y Asistencia Social
http://www.sespas.gov.do/
East Timor Ministério da Saúde
Ecuador Ministerio de Salud Pública
http://www.msp.gov.ec/
Egypt Ministry of Health and Population
http://www.mohp.gov.eg/
El Salvador Ministerio de Salud Pública y Asistencia Social
http://www.salud.gob.sv/
Estonia Ministry of Social Affairs
http://www.sm.ee/
Ethiopia Ministry of Health
http://www.moh.gov.et/
Fiji Ministry of Health
http://www.health.gov.fj/
Finland Ministry of Social Affairs and Health
http://www.stm.fi/sivukartta
France Ministère de la Santé et des Sports
http://www.sante.gouv.fr/
Gambia Ministry of Health
Georgia Ministry of Labour, Health and Social Affairs
Germany Bundesministerium für Gesundheit
http://www.bmg.bund.de/
Ghana Ministry of Health
http://www.moh-ghana.org/
Greece Ministry of Health and Welfare
http://www.mohaw.gr/
Grenada Ministry of health, social security, the environment and ecclesiastic affairs
Guatemala Ministerio de Salud Pública y Asistencia Social
http://portal.mspas.gob.gt/
Guyana Ministry of Health
http://www.health.gov.gy/
Honduras Secretaría de Salud
http://www.salud.gob.hn/
Hungary Ministry of Health
Iceland Ministry of Health
http://eng.velferdarraduneyti.is/
India Ministry of Health and Family Welfare
http://mohfw.nic.in/welcome.html
Indonesia Ministry of Health
Iran Ministry of Health and Medical Education
http://www.hbi.ir/
Iraq Ministry of Health
Ireland Department of Health and Children
http://www.dohc.ie/
Israel Ministry of Health
http://www.health.gov.il/english/
Italy Ministero della Salute
http://www.salute.gov.it/
Jamaica Ministry of Health
http://www.moh.gov.jm/
Japan Ministry of Health, Labour and Welfare
http://www.mhlw.go.jp/english/
Jordan Ministry of Health
http://www.moh.gov.jo/MOH/arabic/home.php
Kazakhstan Ministry of Public Health
http://www.dari.kz/
Kenya Ministry of Health
http://www.statehousekenya.go.ke/government/health.htm
Kosovo Ministry of Health
Kuwait Ministry of Health
http://www.moh.gov.kw/
Kyrgyzstan Ministry of Healthcare
Laos Ministry of Health
http://www.moh.gov.la/
Latvia Ministry of Health
http://www.vm.gov.lv/
Lebanon Ministry of Public Health
http://cms1.omsar.gov.lb/
Lesotho Ministry of Health and Social Welfare
Liberia Ministry of Health & Social Welfare
http://liberiamohsw.org/
Libyan Arab Jamahiriya Secretariat of Health and Environment
http://health.gov.ly/web/
Lithuania Ministry of Health
http://www.sam.lt/
Luxembourg Ministère de la Santé
http://www.ms.public.lu/fr/
Macedonia Ministry of Health
http://www.moh.gov.mk/
Madagascar Ministère de la Santé et du Planning Familia
http://www.sante.gov.mg/
Malawi Ministry of Health
Malaysia Ministry of Health
http://www.moh.gov.my/
Maldives Ministry of Health
http://www.health.gov.mv/
Mali Ministère de la Santé
http://www.sante.gov.ml/
Malta Ministry for Social Policy
http://www.sahha.gov.mt/pages.aspx
Marshall Islands Ministry of Health
http://www.rmiembassyus.org/Health.htm
Mauritania Ministère de la Santé et des Affaires Sociales
Mauritius Ministry of Health and Quality of Life
http://www.gov.mu/portal/site/mohsite
Mexico Secretaría de Salud
http://portal.salud.gob.mx/
Moldova Ministry of Health
http://www.ms.md/
Monaco Département des Affaires Sociales et de la Santé
http://www.gouv.mc/devwww/wwwnew.nsf/1909$/154b43cc4548b197c1256f8d004ffbf8fr?OpenDocument&4Fr
 
Mongolia Ministry of Health
http://www.moh.mn/
Montenegro Ministry of Health
Morocco Ministère de la Santé
http://www.sante.gov.ma/
Mozambique Ministério da Saúde
http://www.misau.gov.mz/
Myanmar Ministry of Health
http://www.moh.gov.mm/
Namibia Ministry of Health and Social Services
http://www.healthnet.org.na/
Nepal Ministry of Health and Population
Netherlands Ministry of Health
http://www.moh.govt.nz/moh.nsf
Nicaragua Ministerio de Salud
http://www.minsa.gob.ni/
Nigeria Federal Ministry of Health
http://www.fmh.gov.ng/
Norway Ministry of Health and Care Services
http://www.regjeringen.no/en/dep/hod.html?id=421
Oman Ministry of Health
http://www.moh.gov.om/
Pakistan Ministry of Health
Palau Ministry of Health
http://www.palau-health.net/
Palestine Ministry of Health
http://www.moh.gov.ps/newsite/ar/index.php?action=view&page=homepage
Panama Ministerio de Salud
http://www.minsa.gob.pa/
Papua New Guinea Department of Health
http://www.health.gov.pg/
Paraguay Ministerio de Salud Pública y Bienestar Social
http://www.mspbs.gov.py/v2/index.php
Peru Ministerio de Salud
http://www.minsa.gob.pe/portada/
Philippines Department of Health
http://www.doh.gov.ph/
Poland Ministry of Health
http://www.mz.gov.pl/
Portugal Direcção-Geral da Saúde
http://www.dgs.pt/
Puerto Rico Departamento de Salud
http://www.salud.gov.pr/Pages/default.aspx
Qatar Ministry of Health
http://portal.www.gov.qa/wps/portal/homepage
Romania Ministerul Sanatatii
http://www.ms.ro/
Russian Federation Ministry of Health and Social Development
http://www.minzdravsoc.ru/
Rwanda Ministry of Health
http://www.moh.gov.rw/
Saint Kitts and Nevis Ministry of Health
http://mohdemo.gov.kn/
Saint Lucia Ministry of Health, Human Services, Family Affairs and Gender Relations
http://www.stlucia.gov.lc/agencies/ministry_of_health.htm
Samoa Ministry of Health
http://www.health.gov.ws/
San Marino Segreteria di Stato per la Sanità, la Sicurezza Sociale, la Previdenza, la
Famiglia, gli Affari Sociali e le Pari Opportunità
http://www.sanita.sm/on-line/Home.html
Sao Tome and Principe Ministério da Saúde
http://www.gov.st/data/filestorage/docs/minsaude.htm
Saudi Arabia Ministry of Health
http://www.moh.gov.sa/Pages/Default.aspx
Senegal Ministère de la Santé et de la Prévention
http://www.sante.gouv.sn/
Serbia Ministry of Health
http://www.zdravlje.gov.rs/
Seychelles Ministry of Health
http://www.moh.gov.sc/
Sierra Leone Ministry of Health and Sanitation
Singapore Ministry of Health
http://www.moh.gov.sg/mohcorp/default.aspx
Slovakia Ministry of Health
http://www.health.gov.sk/
Slovenia Ministry of Health
http://www.mz.gov.si/
South Africa Department of Health
http://www.doh.gov.za/
South Korea Ministry of Health, Welfare and Family Affairs
http://www.mohw.go.kr/front/index.jsp
Spain Ministerio de Sanidad y Política Social
http://www.msc.es/
Sri Lanka Ministry of Healthcare and Nutrition
http://www.health.gov.lk/
Sudan Federal Ministry of Health
http://www.fmoh.gov.sd/
Suriname Ministrie van Volksgezondheid
http://www.volksgezondheid.gov.sr/
Swaziland Ministry of Health and Social Welfare
Sweden Ministry of Health and Social Affairs
http://www.sweden.gov.se/sb/d/2061
Switzerland Federal Office of Public Health
http://www.bag.admin.ch/aktuell/
Syria Ministry of Health
Taiwan Department of Health
http://www.doh.gov.tw/cht2006/index_populace.aspx
Tajikistan Health Ministry
http://www.health.tj/
Tanzania Ministry of Health and Social Welfare
http://www.moh.go.tz/
Thailand Ministry of Public Health
http://www.moph.go.th/moph2/index4.php
Tonga Ministry of Health
http://www.health.gov.to/
Trinidad and Tobago Ministry of Health
http://www.health.gov.tt/
Tunisia La santé en Tunisie
Turkey Ministry of Health
http://www.saglik.gov.tr/TR/ana-sayfa/1-0/20110427.html
Uganda Ministry of Health
http://www.health.go.ug/
Ukraine Ministry of Health
http://www.moz.gov.ua/ua/portal/
United Arab Emirates Ministry of Health
http://www.moh.gov.ae/ar/Pages/default.aspx
United Kingdom Department of Health
http://www.dh.gov.uk/en/index.htm
United States of America Department of Health & Human Services
http://www.dhhs.gov/
Uruguay Ministerio de Salud Pública
http://www.msp.gub.uy/index_1.html
Uzbekistan Ministry of Health
http://www.med.uz/
Venezuela Ministerio del Poder Popular para la Salud
Vietnam Ministry of Health
http://www.moh.gov.vn/web/guest/home
Yemen Ministry of Public Health and Population
http://www.mophp-ye.org/english/index.html
Zambia Ministry of Health
Zimbabwe Ministry of Health and Child Welfare
http://www.mohcw.gov.zw/
On-line reports:

On line reports on each country’s health and pharmaceuticals can also be obtained from the following websites:

http://www.who.int/whr/en/index.html
http://www.who.int/publications/en/
https://apps.who.int/infobase/report.aspx
http://apps.who.int/globalatlas/
http://www.imshealth.com/portal/site/imshealth
http://www.imsglobal.org/
http://www.fda.gov/
http://www.hhs.gov/
http://www.nih.gov/
http://www.pharmaceutical-business-review.com/
http://www.pharmiweb.com/

Pharma research portals:

Detailed research into various aspects of Pharma markets can also be obtained from the following research portals. Most of these need subscription or charge for each of the reports.

http://www.datamonitor.com/
http://www.globalbusinessinsights.com/hc/hc_portfolio.htm
http://www.businessmonitor.com/
http://www.frost.com/
http://www.marketlineinfo.com/
http://www.marketresearch.com/

Journal /Magazine publications etc.:

Some of the secondary data can also be obtained from the following journals and magazines.

European Confederation of Pharmaceutical Entrepreneurs (EUCOPE)
European Federation of Pharmaceutical Industries and Associations (EFPIA)
European Pharmaceutical Market Research Association (EphMRA)
International Federation of Pharmaceutical Manufacturers and Associations (IFPMA)
Japan Pharmaceutical Manufacturers Association (JPMA)
New York Health Products Council (NYHPC)
Pharmaceutical Research and Manufacturers of America (PhRMA)
Irish Pharmaceutical Healthcare Association (IPHA)

Types of data:

Data such as basic statistics, overview, disease outbreaks & crises, mortality and burden of disease, health services, risk factors, health systems etc., could be obtained from each country profiles (Please click on each country’s link)

Afghanistan
Albania
Algeria
Andorra
Angola
Antigua and Barbuda
Argentina
Armenia
Australia
Austria
Azerbaijan

Bahamas
Bahrain
Bangladesh
Barbados
Belarus
Belgium
Belize
Benin
Bhutan
Bolivia (Plurinational State of)
Bosnia and Herzegovina
Botswana
Brazil
Brunei Darussalam
Bulgaria
Burkina Faso
Burundi

Cambodia
Cameroon
Canada
Cape Verde
Central African Republic
Chad
Chile
China
Colombia
Comoros
Congo
Cook Islands
Costa Rica
Côte d’Ivoire
Croatia

 

Democratic People’s Republic of Korea
Democratic Cuba
Cyprus
Czech Republic Republic of the Congo

Denmark
Djibouti
Dominica
Dominican Republic

Ecuador
Egypt
El Salvador
Equatorial Guinea
Eritrea
Estonia
Ethiopia

Fiji
Finland
France

Gabon
Gambia
Georgia
Germany
Ghana
Greece
Grenada
Guatemala
Guinea
Guinea-Bissau
Guyana

Haiti
Honduras
Hungary

Iceland
India
Indonesia
Iran (Islamic Republic of)
Iraq
Ireland
Israel
Italy

Jamaica
Japan
Jordan

 

Kazakhstan
Kenya
Kiribati
Kuwait
Kyrgyzstan

Lao People’s Democratic Republic
Latvia
Lebanon
Lesotho
Liberia
Libyan Arab Jamahiriya
Lithuania
Luxembourg

Madagascar
Malawi
Malaysia
Maldives
Mali
Malta
Marshall Islands
Mauritania
Mauritius
Mexico
Micronesia (Federated States of)
Monaco
Mongolia
Montenegro
Morocco
Mozambique
Myanmar

 

Namibia
Nauru
Nepal
Netherlands
New Zealand
Nicaragua
Niger
Nigeria
Niue
Norway

 

 

Oman

Pakistan
Palau
Panama
Papua New Guinea
Paraguay
Peru
Philippines
Poland
Portugal

Qatar

Republic of Korea
Republic of Moldova
Romania
Russian Federation
Rwanda

Saint Kitts and Nevis
Saint Lucia
Saint Vincent and the Grenadines
Samoa
San Marino
Sao Tome and Principe
Saudi Arabia
Senegal
Serbia 
Seychelles
Sierra Leone
Singapore
Slovakia
Slovenia
Solomon Islands

Somalia
South Africa
Spain
Sri Lanka
Sudan
Suriname
Swaziland
Sweden
Switzerland
Syrian Arab Republic

Tajikistan
Thailand
The former Yugoslav Republic of Macedonia
Timor-Leste
Togo
Tonga
Trinidad and Tobago
Tunisia
Turkey
Turkmenistan
Tuvalu

Uganda
Ukraine
United Arab Emirates
United Kingdom
United Republic of Tanzania
United States of America
Uruguay
Uzbekistan

Vanuatu
Venezuela (Bolivarian Republic of)
Viet Nam

Yemen

Zambia
Zimbabwe

 

 Country wise healthcare data can also be obtained from the following:

http://www.who.int/whosis/en/
http://www.nationmaster.com/
Http://www.pwc.com/us/en/healthcare/…/secondary-health-data.jhtml
http://www.imf.org/external/pubs/ft/survey/so/…/BOK051C.htm
http://www.thehealthcareblog.com/…health_care…/medical-data-in-the-internet-cloud-part-3-data-privacy.html

Country wise Economic indicators could be obtained from the following links:

https://www.cia.gov/library/publications/the-world-factbook/
http://www.economywatch.com/economic-statistics/country/
http://www.imf.org/external/data.htm
http://www.oecd.org/…/0,3343,en_2649_34265_2367750_1_1_1_1,00.html
http://www.forextradinghq.com/forex-information/economic-indicators
http://unfccc.int/ghg_data/ghg_data_non_unfccc/items/3170.php
http://www.library.mcgill.ca/edrs/links/country/country.html
http://www.imf.org/external/pubs/ft/weo/2009/01/weodata/index.aspx

Country wise Pharmaceutical sales data could also be obtained from:

http://apps.who.int/medicinedocs/en/d/Js6160e/6.html
http://en.wikipedia.org/wiki/Pharmaceutical_industry
http://www.piribo.com/publications/general_industry/pharmaceutical_market_trends_2008_2012.html
http://www.marketresearch.com/map/prod/2539915.html
http://www.researchandmarkets.com/reports/481962

What to analyze and why?

Economic indicators: The following economic indicators are important to evaluate and formulate entry strategies for each country.

GDP (purchasing power parity): A nation’s GDP at purchasing power parity (PPP) exchange rates is the sum value of all goods and services produced in the country valued at prices prevailing in the United States. This is the measure most economists prefer when looking at per-capita welfare and when comparing living conditions or use of resources across countries. 

GDP (official exchange rate): A nation’s GDP at official exchange rates (OER) is the home-      currency-denominated annual GDP figure divided by the bilateral average US exchange rate with that           country in that year. The measure is simple to compute and gives a precise measure of the value of       output.

GDP – real growth rate: This entry gives GDP growth on an annual basis adjusted for inflation and expressed as a percent.

GDP – per capita (PPP): This entry shows GDP on a purchasing power parity basis divided by population as of 1 July for the same year.

Population: The total population presents one overall measure of the potential impact of the country on the world and within its region.

Budget: This entry includes revenues, expenditures, and capital expenditures.

Inflation rate (consumer prices): This entry furnishes the annual percent change in consumer prices compared with the previous year’s consumer prices.

Exports: This entry provides the total US dollar amount of merchandise exports on an f.o.b. (free on board) basis. These figures are calculated on an exchange rate basis, i.e., not in purchasing power parity (PPP) terms.

Imports: This entry provides the total US dollar amount of merchandise imports on a c.i.f. (cost, insurance, and freight) or f.o.b. (free on board) basis. These figures are calculated on an exchange rate basis, i.e., not in purchasing power parity (PPP) terms.

Reserves of foreign exchange and gold: This entry gives the dollar value for the stock of all financial assets that are available to the central monetary authority for use in meeting a country’s balance of payments needs as of the end-date of the period specified. This category includes not only foreign currency and gold, but also a country’s holdings of Special Drawing Rights in the International Monetary Fund, and its reserve position in the Fund.

Debt – external: This entry gives the total public and private debt owed to nonresidents repayable in foreign currency, goods, or services. These figures are calculated on an exchange rate basis, i.e., not in purchasing power parity (PPP) terms.

Exchange rates: This entry provides the official value of a country’s monetary unit at a given date or over a given period of time, as expressed in units of local currency per US dollar and as determined by international market forces or official fiat. The International Organization for Standardization (ISO) 4217 alphabetic currency code for the national medium of exchange is presented in parenthesis.

(Source: https://www.cia.gov/library/publications/the-world factbook/docs/notesanddefs.html)

Global Pharma Market

global_pharma_market

 global_pharma_market_by_region

global_pharma_product_market

global_therapautlo_classes_market

global_pharma_companies_market

 

Global Pharma Market maintains growth expectations of 4-6% in 2010. Forecast: 5-8% annually through 2014. To reach $1.1 trillion by 2014 growing nearly $300 billion in the next 5 years. The growth in 2008 was 4.8 percent but where as in 2009, the market growth was 7% reaching $837 billion.

Leading products loose patent protection in developed markets and strong growth in emerging markets tilt growth towards generics

Pressure from the payers to curb drug spending on the publicly funded healthcare plans in developed markets will only intensify growth, which will be more than offset by the ongoing, rapid expansion of demand in the Pharmerging markets. The net result over the next five years will be a strong growth — in spite of industry facing the peak years of patent expires and entry of lower-cost generic alternatives.

Pharmerging countries continue to tilt the geographic balance of Global pharmaceutical market. While developed markets will grow only 3-6%, Pharmerging markets will record a growth of 14 – 17% through 2014 which will be around $120-$140 billion from $69 billion over the past 5 years, similar to the growth of developed markets. The U.S. shall continue to remain the single largest market, reaching $360 – $390 billion in 2014, up from $300 billion in 2009, with 3 – 6 percent growth expected annually in the next five years.

Therapy area growth dynamics driven by innovation cycle and areas of unmet need. Higher growth will occur in the therapy areas where there is significant unmet clinical need, high cost burden of disease and new treatment options through innovative science. As the new drugs are brought to market, patient access is expanded and funding is redirected from other areas where lower-cost generics will be available, annual growth is expected to exceed 10 percent through 2014 in the areas of oncology, diabetes, multiple sclerosis and HIV.

Drug budgets growth reduced due to cuts in spending applied by public payers. Due to global economic down turn, publicly funded health systems are under increased pressure to reduce growth in drug budgets. Countries such as Turkey, Spain, Germany and France already have announced restrictions on access or reductions in reimbursements to reduce drug spending growth. Other countries under pressure to restore fiscal balance may take similar actions, or shift more costs to patients.

Generic dominance shall increase as patents expire. In the next five years, as the patents of products with sales of more than $142 billion expire and face generic competition in major developed markets, the patients shift to lower-cost generics in major therapy areas such as cholesterol regulators, antipsychotics and anti-ulcerants reducing the total drug spending by about $80 – $100 billion worldwide through 2014. This will impact the U.S., where nearly two-thirds of the total value of patent expires will occur. Patents of 6 products out of 10 will face generic competition in the U.S. and will peak in 2011 and 2012.

Payers spend less initially while new products await scrutiny. 30 -35 new molecular entities will be launched annually over the next five years. But before being accepted into clinical practice and reimbursed, these will be subject to more rigorous and complex assessments by payers. In many countries such as China, Spain, Italy and Canada, funding and implementation of healthcare at regional or local levels is becoming more significant which will extend the time it takes for new medicines to become available to patients, and therefore contribute to lower initial spending by payers.

The US market – growth improves to 6%

The US pharmaceutical market, which constitutes around 45% of the global market, Grew by 6% — from US$206.4bn to US$218.8bn (Rs9, 310bn-Rs9, 870bn). The growth Rate for Nov’09 was 5%, indicating a steady improvement of the US Pharma market. Moreover, the US Pharma market is growing at 6% in line with the global markets indicating steady and sustainable growth.

The Canadian pharmaceutical market, much smaller in size as compared to the US market, grew by 7% — from US$16.3bn to US$17.4bn (Rs735bn to Rs785bn).

European markets – signs of sluggishness

The five major European pharmaceutical markets (Germany, France, Italy, UK and

Spain) grew by 2% — from US$108.1bn to US$110.3bn (Rs4,880bn to Rs4,980bn).

The growth rate of 3% in November’09 fell to 2% indicating that the European market

is showing signs of sluggishness.

Details of key country drug purchases in these markets are shown in the table

below:

Particulars 12 months ending

country_drug_purchase

12 months ending

Jan’09 % Growth

Economic downturn affects markets

Growth has slowed in countries where with high out-of-pocket spending on drugs and steep decline in macroeconomic activity especially in Russia, Mexico and S. Korea. Growth has been less affected in countries where drugs are largely funded publicly, such as Germany, Japan and Spain.  

Chinese market – likely to grow over 20%

China’s pharma market is expected to grow at over 20% per annum and contribute 21% of overall global growth through 2013.

Global events

According to IMS data (for 12 months ending January 2010):

 The top five global pharmaceutical companies were Pfizer, Merck, Astra Zeneca, Novartis and Glaxo Smith Kline (GSK).

 The five largest-selling drugs were Lipitor (Pfizer), Plavix (Bristol Meyer Squibb, Sanofi Aventis), Nexium (Astra Zeneca), Seretide/Advair (Glaxo Smith Kline) and Crestor (Astra Zeneca).

 The top five therapeutic classes were: cholesterol and triglyceride regulators, anti-ulcerants, anti-depressants, anti-psychotics and Angioten-II antagonists.

Global news

Clinical trials carried out by MNC pharma companies in India has seen a 30% drop from 229 trials in 2008 to 158 trials in 2009. This is due to sharp reduction in R & D budgets in 2009 due to global recession and shrinking R & D pipeline of MNC pharma companies.

  • Astra Zeneca has signed an agreement with Torrent Pharma to market 18 of its products in 9 emerging markets.
  • Glenmark Pharma has been issued a warning letter by US FDA for marketing unapproved Nitroglycerin tablets in the US.
  • Novo Nordisk has launched its new diabetes drug Victoza in the US.
  • The US FDA has approved Astra Zeneca’s statin Crestor for additional indications.
  • Roche and Biogen’s Rituxan were cleared by US FDA for the treatment of chronic leukemia.
  • The US FDA approved Pfizer’s Prevenar 13 pneumococcal vaccine.
  • Daiichi Sankyo is forming a new subsidiary in April’10 for the sale of generics in Japan.
  • US FDA has warned Eli Lilly about manufacturing problems at its Puerto Rican plant that manufactures Humalog Insulin.
US Healthcare Bill
  • Legislation to overhaul US Healthcare system would cost $940bn over next 10 years.
  • The Bill will extend coverage to 32m uninsured Americans. This will include aged people or those deprived of insurance based on pre-conditions. The drug requirement for them will be high.
  • With this 95% of the US population will be covered by healthcare.
  • It will cut the federal budget deficit by $138bn in the first decade.
  • Insurers such as Cigna Corporation would get millions of new policyholders and are required to accept all customers.
  • Big pharma companies including Pfizer and Amgen will be major beneficiaries.
  • The new regulations are likely to generate direct new business of $115bn over the next 10 years ($11bn per annum).
  • The branded biologics will have exclusive period of 12 years instead of 7 years earlier, leading to prolonged protection. This is positive for US biotech companies.
Global Pharmaceutical Market Estimated to Double to $1.3 Trillion by 2020

The global pharmaceutical market shall more than double in value and reach $1.3 trillion by 2020, driven by soaring worldwide demand for medicines as the population grows, ages and becomes more obese and as chronic conditions and infectious diseases tied to global warming increase. It is warned that the current pharmaceutical business model is unsustainable and the industry must fundamentally change the way it operates if it is to capitalize on future growth opportunities.

The E7 countries – Brazil, China, India, Indonesia, Mexico, Russia and Turkey – could account for as much as one-fifth of global pharmaceutical sales by 2020, an increase of 60 percent since 2004. Further, as these countries become more prosperous, the chronic conditions in the developing world will increasingly resemble those of the developed world, with a significant rise in hypertension and diabetes. Many scientists also predict that global warming and rise in greenhouse gases will have a major effect on the world’s health, with the spreading of diseases such as malaria, cholera and higher prevalence of respiratory illnesses such as asthma and bronchitis.

The pharma industry will not be able to meet the challenge unless R&D productivity improves. The Pharma Industry lacks innovation. The industry is investing twice as much in R&D as it was a decade ago to produce two-fifths of the new medicines it then produced. It is simply an unsustainable business model. The current pharmaceutical industry business model is both economically unsustainable and operationally incapable of acting quickly enough to produce the types of innovative treatments that will be demanded by global markets. Pharmaceutical companies are facing a dearth of new compounds in the pipeline, poor share value performance, rising sales and marketing expenditures, increased legal and regulatory constraints and tarnished reputations.

In the next decade, the industry must invest in research and focus less on sales and marketing. Pharma’s traditional strategy of placing big bets on a few small molecules, marketing them heavily into primary care with the aspiration of achieving blockbuster sales, will no longer be viable. The Industry must focus on the development of medicines that prevent, treat or cure. These must demonstrate tangible benefits and tackle unmet medical needs. Governments and payers must play their part and ensure the industry is rewarded for these efforts.”

Some of the major changes expected are:

The blockbuster sales model shall be replaced by a smaller, smarter and more effective sales force, led by key account managers who will negotiate contracts based on therapeutic benefit and outcomes. The quality of value shall prevail over the quantity. Integrated packages of medicines and services, and some services, such as personalized patient monitoring and disease management, shall be more valuable than the medicines themselves.

Emphasis on outcomes to increase. Successful companies will prove that their products really work and add value. Companies also will be financially rewarded for developing new therapies versus me-too medicines. Risk-sharing agreements will become more mainstream with drug manufacturers adjusting prices according to the results of outcomes analysis data that demonstrates drug efficacy.

Compliance monitoring becomes win-win for patients, payers and providers. Solutions to monitor and ensure that patients are fully compliant with their medications could generate more revenue a year in new sales, and would improve outcome and patient safety. Pharmaceutical companies will revise their proposition, employ new technologies and develop personalized compliance monitoring techniques as a value-added service to patients, payers and providers.

Prevention shall come first than treatment. Pharma companies health management, with wellness programs, compliance monitoring and a significant increase in the production of vaccinations. Vaccines market is estimated to grow to $42 billion by 2015.

New technologies will drive R&D. Technological transformations such as genetic-based diagnostics, human genome etc., shall reshape the business strategies.

The current linear R&D process will give way to in-life testing and live licensing. Phase I, II III and IV clinical trials will be replaced by collaborative in-life testing and ‘live license’ issued contingent on the ongoing performance.

Greater international regulatory cooperation. There may well be one global regulatory system by 2020. Such a system would help to reduce the spiraling costs of regulatory compliance and reduce time to market.

The supply chain functions will become revenue generating. The future supply chain will be revenue generating rather than a cost center. 2020 will likely give rise to ‘made to order’ therapies.

More sophisticated direct-to-consumer distribution channels shall diminish the role of wholesalers. Growing self medication sector, automated dispensing direct to consumers, automated prescriptions etc., will supplant reliance on wholesalers.

The entire global health care system is being subjected to a seismic shift or upheaval that will force the pharmaceutical companies to change the way they operate. The challenges are steep, but the rewards could be significant.

(Adapted from http://www.PharmaManufacturing.com)

Global Pharma Market Overview

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