G LOBAL P HARMACEUTICAL

I NDUSTRY : O VERVIEW
A closer look at the market drivers, major
players and factors affecting growth and development

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 Global Pharmaceutical Market: Overview

Index
1. Executive Summary
2. Industry Overview

2.1 Global pharmaceutical market

2.2 Segmentation of the market
2.2.1 Geographic segmentation
3.2.2 Therapeutic segmentation
3.3 Major therapeutic classes
3.4 Major products
3.5 Demand–supply
3.6 Trends shaping the pharmaceutical industry
3.7 Conclusion
3.8 Bibliography

4. Growth Drivers

4.1 Introduction
4.2 Major growth drivers
4.3 Conclusion
4.4 Bibliography

5. Issues and Challenges

5.1 Introduction
5.2 Major issues and challenges
5.3 Conclusion
5.4 Bibliography

6. Technology

6.1 Introduction
6.2 Technology in drug development
6.3 Technology in drug delivery
6.4 Technology in manufacturing
6.5 Technology in marketing
6.6 New technologies
6.7 Conclusion
6.8 Bibliography

7. Major Markets

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 Global Pharmaceutical Market: Overview

7.1 Introduction
7.2 US Market size and Market segmentation
7.3 Japan Market size and Market segmentation
7.4. Europe Market size and Major markets
7.5. UK Market size and Market segmentation
7.5 Emerging markets
7.5.1 Mexico
7.5.2 Brazil
7.5.3 China
7.5.4. India
7.6 Conclusion
7.7 Bibliography

8. Major Players

8.1 Pfizer
8.2 Johnson & Johnson
8.3 Glaxo SmithKline
8.4 Sanofi-Aventis
8.5. Novartis
8.6.Roche
8.7 AstraZeneca
8.8 Merck
8.9 Abbot Laboratories
8.10 Eli Lilly
8.11 Conclusion
8.12 Bibliography

9. Regulatory Aspects

9.1 Introduction
9.2 Regulatory bodies
9.2.1 US
9.2.2 European Union
9.2.3 Japan
9.3 Laws governing the industry
9.3.1 Regulations in the US
9.3.2 Regulations in Japan
9.3.3 Regulations in Europe
9.4 International agreements on intellectual property rights protection
9.4.1 General Agreement on Tariffs and Trade (GATT)
9.4.2 Trade Related Aspects of Intellectual Property Rights (TRIPS)
9.4.3 The Paris Convention (PCPIP)
9.4.4 The Patent Co-operation Treaty (PCT)
9.5 Prolonging Patent Protection

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 Global Pharmaceutical Market: Overview

9.5.1 GATT and TRIPS

9.5.2 The Waxman-Hatch Act
9.6 Recent regulatory amendments
9.6.1 US
9.6.2 EU
9.6.3 Japan
9.7 Conclusion
9.8 Bibliography

10. Mergers & Acquisitions

10.1 Introduction
10.2 M&A drivers
10.3 M&A trends
10.4 Top 10 M&A deals (2007, 2008 and 2009)
10.5 Conclusion
10.6 Bibliography

11. Critical Success Factors

11.1 Introduction
11.2 Success factors
11.2.1 Alliances and acquisitions
11.2.2 Outsourcing to low cost destinations
11.2.3 Absorption of technological innovations
11.2.4 Improving sales force effectiveness
11.2.5 Critical mass
11.2.6 Need for blockbuster drugs
11.3 Conclusion
11.4 Bibliography

12. Future Outlook

13. Bibliography

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 Global Pharmaceutical Market: Overview

2. 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
is estimated to be about 50. The global pharmaceutical industry
is expected to reach $830 billion by
This report gives a brief
description on the global end of 2010 with a growth rate of
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.

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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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