Global Pharmaceuticals & Medicine Manufacturing Industry Market Research Report from IBISWorld has Been Updated

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Higher healthcare standards in emerging economies will continue to drive growth for the industry, while the expiration of brand-name patents give rise to generic drugs. For these reasons, industry research firm IBISWorld has added a report on the Global Pharmaceuticals & Medicine Manufacturing industry to its growing industry report collection.

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Having saturated the developed world, operators are turning to emerging nations for growth

Over the five years to 2012, the Global Pharmaceuticals and Medicine Manufacturing industry has enjoyed steady growth despite a number of changes to the industry's landscape. According to IBISWorld industry analyst Anna Son, “Industry revenue has grown on the back of increased access to more comprehensive healthcare in developing countries and demographic shifts necessitating more healthcare expenditure.” The growing number of middle-class people around the world has also translated into a dramatic increase in demand for pharmaceuticals. Industry growth has been restrained, however, by the potent combination of a historically high level of patent expirations on blockbuster drugs, accelerating competition from generics and a depleted product pipeline with fewer new medicines making it to market. Growing price pressures from governments and health insurance organizations throughout the world has also strained the industry.

Industry revenue has grown from $840.0 billion in 2007 to about $1.0 trillion in 2012, representing annualized growth of 4.0%. In 2012, the Global Pharmaceuticals and Medicine Manufacturing industry has been challenged by key patent expirations and continued pricing pressures amid changing healthcare access and funding issues. At the same time, emerging markets (such as China, India and Brazil) have been driving sales of pharmaceuticals. Growth from these markets is significantly exceeding growth rates in more mature markets, such as the United States and Western Europe. “This is because in the more mature markets, companies have had to contend with increased regulation and significant changes in healthcare policy due to various austerity measures and healthcare reforms,” says Son. Overall, revenue is forecast to grow 3.0% in 2012.

In the short term, the industry is expected to continue its gradual transformation process. Emerging markets will continue to grow in importance as the geographic base of the industry continues to gradually move away from the traditional powerhouses. Meanwhile, diversification strategies and merger and acquisition activity will remain key features characterizing the industry's evolution. Though the industry will likely maintain its low level of market share concentration, major players, like Pfizer and Merck, will acquire other companies to grow global marketing power and maximize research and development capabilities. For more information, visit IBISWorld’s Global Pharmaceuticals & Medicine Manufacturing industry report page.

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IBISWorld industry Report Key Topics

This industry comprises companies that manufacture biological, medicinal and pharmaceutical products in various forms, including ampoules, tablets, capsules, vials, ointments, powders, solutions and suspensions. The overall pharmaceutical market can be segmented between prescription-based (or ethical) products and over-the-counter medications. The products are predominantly distributed via wholesalers and are then sold via pharmacies or distributed in hospitals.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
IBISWorld
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