Sales growth, pharmaceutical

The first control sample was obtained by matching nonpharmaceutical firms with pharmaceutical firms Oil the basis of sales and sales growth the second control sample was obtained by matching nonpharmaceutical firms with p harmaceutical firms on the basis of sales and R D intensity. 

The cost of capital for the pharmaceutical industry was slightly higher than that for control sample I (matched by sales and sales growth) but lower than that for the control sample II (matched by sales and R D). (See table 4-10). Thus, it appears that the higher estimated IRRs of the research-intensive pharmaceutical industry cannot be explained by a higher cost of capital in the pharmaceutical industry. 

Control I Firms similar to pharmaceutical industry in sales and sales growth. 

According to the May 2003 report by IMS Health, the sales of pharmaceuticals through retail pharmacies in 13 major world markets for the 12 months to March 2003 grew at 6% to US 284.4 billion. Biopharmaceutical products make up to about 7% of the total pharmaceutical markets of US 400 billion. However, the growth rate for biopharmaceuticals is high, and it is expected that half the total pharmaceutical market will be biopharmaceuticals within the next 10-20 years. 

Small molecule drugs, defined as drugs with typical molecular weights <500 daltons, have been the main drivers of sales growth for Big Pharma. The projections lean toward a change in this trend by the turn of this decade. The pharmaceutical industry is expected to move rapidly toward biologic products, defined usually, but not exclusively, as protein-based therapeutic agents. Therapeutic... 

President of Mcllvaine, Robert Mcllvaine commented We ve been watching three different market segments as major drivers of RO sales growth semiconductor manufacturing, pharmaceutical processing, and desalination. Of these, w e expect to see the greatest growth in the area of desalination, especially in Asia and the Middle East. ... 

Sales growth in the pharmaceutical industry has been impressive through the 1990s. While a portion of this has been through expansion of markets to... 

In 1993, the United States medical device industry employed 282,000 people, averaging a growth rate of about 4% since 1975. Research and development spending in this industry outpaced that in virtually every other industry. Over 7% of sales were spent on research and development in 1993, amounting to a Httle less than 3 bHHon. This rate reflects both the rapid rate of innovation and short product life-cycle. Medical devices become obsolete far more rapidly than pharmaceuticals (qv), forcing companies continuously to be innovative. 

There has been a steady growth ia the economic importance of therapeutic ensymes, with sales reaching hundreds of millions of dollars per year as of 1992. Table 2 Hsts the trade names and costs of some of the more commonly prescribed enzyme preparations. Despite the magnitude of use of these products, the manufacture and sale of therapeutic enzymes represents a comparatively small fraction of the production and profits of the pharmaceutical houses that market them. 

---