Pharmaceutical sales, globalization

Table 2 Global Population and Pharmaceutical Sales (by value) by Region, 1997...

The U.S. pharmaceutical and biotechnology industry continues to lead the world in innovation and product sales. It accounts for nearly 40% of global pharmaceutical sales [34]. This industry is in fact one of the few in which the United States retains a commanding global lead. If the twenty-first century is to become known as the biotech era and the new pharmaceutical century, it will be very important to the United States that this leadership position be retained. 

In 2004 total global pharmaceutical sales were reported to have been about 550 billion in U.S.-dollar equivalents (IMS Intelligence 2005), only a tiny fraction of total global gross national product (GNP) of about 35 trillion (FinFacts 2005). 

Table 1. Leading products by global pharmaceutical sales, 2006...

TABLE 10.2 Leading Therapy Classes In 2002 Global Pharmaceutical Sales... 

The import of drugs consists of approximately 15 percent of global requirement by amount, and is around 52 percent of monetary value (Scrip 1996). In recent years, according to the MOHSW and Central Statistical Office, the Polish pharmaceutical market has increased greatly, from less than US 600 million in 1990 to about US 2 billion in 1996 (of which more than 10 percent was in 1995). The expected value for the beginning of year 2000 is more than US 4 billion (Scrip 1991) (Scrip 1996) (Forum International Conference Warsaw 1996). Details on pharmaceutical sales are presented in Figures 1 and 2. 

The U.S.A., Japan, and Europe are the key markets for the international pharmaceutical industry and make up around 80% of global pharmaceutical sales (2). However, there are major differences in the financial policies, government roles, and cultural expectations of these maricets which have affected the investment efforts and influenced those of the industries in the regions. 

However, despite their practical and societal value, vaccines remain only a small component of the global pharmaceutical market ( 5 billion out of 350 billion sales in 2000). The vaccine market is dominated by just four large manufacturers GlaxoSmithKline, Aventis Pasteur, Wyeth, and Merck Co. There is, however, a strong resurgence of interest in vaccines, with a growing cluster of small vaccine companies and biotech hrms, led by Chiron. 

After the approval of the first product, recombinant insulin, in 1982, progress in the development of new recombinant protein pharmaceuticals was slow ([10], Fig. 17.1). The number of biotechnology-derived drugs and vaccines approved by the US Food and Dmg Administration (FDA) has increased significantly only since 1995. More recently, sales of biologies have skyrocketed, e.g. from 900 million in 1999 to an estimated 3.5 billion in 2001 for monoclonal antibodies [11]. The annual global market for biopharmaceuticals is estimated to have increased from 12 billion US to 30 billion US in 2003 [12]. 500 candidate biopharmaceuticals are undergoing clinical evaluation and over one hundred protein-based therapeutics are in the... 

The top 10 pharmaceutical companies in July 2007 are shown in Table 1.4. These 10 companies account for almost half the global sales of drugs. Of significance is that, in the same period, the companies collectively spent in excess of US 40 billion in research and development (R D). This amount is more than 10% of their sales revenues, showing the importance of R D for these companies. 

Can this separation be made Is there any connection between the use of a price for pharmaceutical products in a given country and the level of R D in that country Fora country like country U whose purchases constitute a very large share of the world drug market, the connection is obvious the buying decisions of a major player obviously affect local drug companies as well as those elsewhere. For a smaller country, like country T, the connection is less obvious R D often would be undertaken based on expected global sales, primarily in other countries, and the level of local sales need not appreciably... 

Therapeutic Categories. This classification is important for the pharmaceutical industry, as many companies specialize in selected therapeutic classes. The ranking of the major ones is shown in Table 11.5. Together, they account for 30% of global drug sales. 

Animal health is a segment of the life sciences industry at the interface of pharmaceuticals and agrochemicals. Global sales were 15 billion in 2005 ( 14.5 billion in 2004, 13.8 billion in 2001, inflation-adjusted). Of the top 10 companies, 9 are business units or spinoffs from pharmaceutical companies (see Table 11.9). The industry is rather concentrated, with the top 10 companies accounting for 75% of total sales. As they do in pharma, US companies dominate in animal health products. Many of the veterinary products in the portfolios had originally been developed for human use or as pesticides. In the pet (respectively companion animal) segment, which comprises cats, dogs, birds, some rodents, reptiles, and horses and represents about 40% of the total market, the association with human health is particularly prominent. 

---