Pharmaceutical Product Manufacturing in Australia Industry Market Research Report Now Updated by IBISWorld

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The expiration of patent protection for some key drugs will lead to industry restructuring and the adoption of new business models. For this reason, industry research firm IBISWorld has updated its report on the Pharmaceutical Product Manufacturing industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

The industry will be affected by the expiration of patent protection for some of the world's key drugs.

The Pharmaceutical Product Manufacturing industry is an important component of the pharmaceutical sector. The major global pharmaceutical groups dominate the local industry, although only a small number are engaged in secondary or actives manufacturing (i.e. active pharmaceutical ingredients). An increasing number are involved in the later stages of the manufacturing process, such as dispensing, packaging and the fill-and-finish stage. A large number of players also restrict their activities in Australia to distribution. Industry revenue is expected to grow by a meagre 0.8% over 2013-14, as various internal and external factors take their toll. IBISWorld forecasts that the industry will generate revenue of $9.9 billion in 2013-14, up from $9.0 billion in 2008-09. This equates to annualised growth of 1.7% over the five years. Domestic demand is estimated to be worth $16.8 billion in 2013-14, highlighting the dominant role that imports play in the industry. While the industry is a net importer, with imported products satisfying almost two-thirds of domestic demand, it is also one of Australia's largest high-technology exporters.

In the short term, the industry is expected to continue its gradual transformation process in view of marginal revenue growth, declining research and development (R&D) productivity, increasing competitive pressures and rising safety concerns. Global industry rationalisation may also have implications for the level of pharmaceutical manufacturing and R&D undertaken in Australia. The industry will be affected by the expiration of patent protection for some of the world's key drugs between 2011 and 2015. This means that the pressure for change will escalate as major players lose exclusive manufacturing rights to some of the most profitable drugs in history. This will result in the adoption of new business models as industry participants seek to evolve to ensure their survival.

Industry concentration measures the extent to which a few players dominate an industry. Over the past two decades, there has been a marked increase in the level of concentration in the global pharmaceutical industry, as major players have continued to merge, driven by the escalating costs of research and development, shorter exclusivity times and the need for global marketing power. The Australian Pharmaceutical Product Manufacturing industry is deemed to have a medium level of market share concentration. This partly reflects the number of mergers that have occurred in the past five years. Given the highly globalised nature of the industry, this will continue to rise gradually, in line with the increasing concentration levels on the world stage. The industry major players include Pfizer Australia, AstraZeneca, Aspen Asia Pacific, GlaxoSmithKline, Sanofi-Aventis Australia and Merck Sharp & Dohme. For more information, visit IBISWorld’s Pharmaceutical Product Manufacturing report in Australia industry page.

Follow IBISWorld on Twitter:!/ibisworldau

IBISWorld industry Report Key Topics

The industry comprises companies that manufacture various medicinal and pharmaceutical products for human use from both synthetic (chemicals) and natural sources. Other products include chemical or diagnostic testing agents, blood serums and biotech products. Industry products are distributed directly by the manufacturer or via wholesalers to hospitals and community pharmacies.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised 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 Australian 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 Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit or call (03) 9655 3886.

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Gavin Smith
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