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A Global Pharmaceutical Industry Report

The global pharmaceutical industry is a multinational industry that is a highly regulated, capital intensive, and which is driven by large research and development expenditures. The industry is primarily privately owned and is technologically sophisticated. The global pharmaceutical market is forecasted to grow to US$ 842 billion in 2010, an equivalent CAGR of 6.9% over the next five years. The strong growth in the ten European market that joined the European Union in 2004 will help to boost European sales over the next five years. Of the leading product classes in 2005, cytostatics and angiotensin-II inhibitors generated the greatest year on year growth. There were sixteen blockbuster drugs in 2005, generating a combined sales of US$ 18.1 billion. The total pharmaceutical sales from the top ten companies accounted for more than 40% of the total market.

Despite a growth rate of 7% down sliding from 2004 and the lowest since 1998, in 2005 the total global pharmaceutical sales reached US$602. Among the ten leading international markets combined, which account for 81% of world wide sales, audited growth was just 5.7%, down from 7.2% in 2004. Emerging markets such as China, South Korea, Brazil, Russia and Turkey experienced double-digit growth signaling an important shift occurring in the pharmaceutical industry. As growth in the mature markets flatten, industry attention is shifting to smaller, developing markets that are doing exceptionally well. Many of these developing nations are experiencing significant gross domestic product growth which helps finance the healthcare systems, increase patient access and fuels the double digit growth. Pharmaceutical measures are gearing up to the challenges of meeting the unmet needs of these markets.

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