London, United Kingdom (PRWEB) May 25, 2012
The UK is the eighth-largest pharmaceutical market in the world. As such, the industry commands important positions in the local economy (with the overall pharmaceutical sector being the third-largest contributor to UK economic growth) and the global pharmaceutical market. IBISWorld industry analyst Arna Richardson says, “the industry is particularly important in terms of its research and development contribution and the development of new drugs”. In the past decade, the Pharmaceutical Preparations Manufacturing industry has been subject to a number of conflicting forces. On the one hand, it has benefited from the combination of increasing life expectancies and an ageing population, both of which increase demand for some drugs, particularly for degenerative diseases. On the other hand, the industry has had to contend with a dry pipeline, rising costs, heightened regulatory scrutiny, safety concerns and increased pricing pressures.
The combination of these variables has restrained growth in the past five years, with growth rates now significantly slower than in the industry's heyday. Over the five years through 2012-13, the industry is expected to post annualised revenue growth of just 1.8%. Richardson adds, “in 2012-13, the industry is forecast to generate revenue of £18.9 billion, a 2.7% increase over 2011-12 as it contends with the fall-out effects associated with the global patent cliff it is facing”. The bulk of industry revenue is derived from export sales. At the same time, imports satisfy the lion's share of domestic demand, reflecting the global nature of the industry and the high degree of intra-firm trade that occurs. The United Kingdom is one of the world's largest exporters of pharmaceuticals by value. The combination of intensifying global forces and growing internal pressures will be translated into further pressure for change over the next five years. Industry players will have to contend with a wide assortment of issues as they adapt to changing economic and operating environments. Over the next five years to 2017-18, industry revenue is forecast to grow.
The Pharmaceutical Preparations Manufacturing industry has a low level of market share concentration. Despite the number of mega mergers and the perceived dominance of the pharmaceutical titans, the top four industry players account for less than 20% of the market. This is the case for all main product segments. Major companies include GlaxoSmithKline, AstraZeneca, Novartis UK and Sanofi.
For more information on the Pharmaceutical Preparations Manufacturing industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
This industry includes companies that manufacture medicaments (including vaccines and homeopathic preparations), chemical contraceptive products, medical diagnostic preparations, radioactive in-vivo diagnostic substances and biotech pharmaceuticals. It also includes those that manufacture medical impregnated wadding, gauze, bandages and dressings, and the preparation of botanical products for pharmaceutical use.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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