Pharmaceutical manufacturers will focus their product portfolio on developing biologic drugs.
New York, NY (PRWEB) September 21, 2014
Over the past five years, the patent cliff has enabled more generic drugs to inundate the market, thereby cutting into revenue growth for the Brand Name Pharmaceutical Manufacturing industry. According to data from Industry Canada, the loss of patent protection for branded drugs has cost the industry $1.8 and $2.5 billion in 2010 and 2012, respectively. “In response to many blockbuster, brand-name drugs losing patent exclusivity, which has hampered revenue growth, many pharmaceutical manufacturers have streamlined their operations,” according to IBISWorld Industry Analyst Sarah Turk. For example, by forming networks with public or private companies and academic institutions, industry operators have been able to share research and development (R&D) costs. Further cutting into industry revenue growth, public health insurance (i.e. federally subsidized prescription plans) and private health insurance providers have attempted to bolster generic drug utilization rates to slash healthcare costs.
“In response to more Canadians using high-cost prescriptions, including oncology, biotechnology and specialty drugs, many provinces have implemented low prices for generic drugs, thus intensifying competition for the industry,” says Turk. For example, British Columbia has set generic prices at 20.0% of brand-name drug prices, which is the lowest price across all provinces and territories, thus demonstrating the trend of many provincial drug plans drastically cutting their generic drug prices. As a result, industry revenue is expected to decline at an annualized rate of 2.4% to $16.7 billion during the five years to 2014. However, in 2014, revenue is anticipated to rise 0.4%, thanks to many specialty drugs, such as biologics, increasingly characterizing pharmaceutical manufacturers' drug pipeline. Additionally, the expansion of Canadian's access to primary healthcare services will bolster demand for pharmaceuticals.
During the five years to 2019, industry revenue is forecast to grow. Many pharmaceutical manufacturers will focus their product portfolio on developing biologic drugs, particularly in oncology, autoimmune, antivirals, immunostimulants, immunosuppressants and multiple sclerosis.
For more information, visit IBISWorld’s Brand Name Pharmaceutical Manufacturing in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry develops prescription and over-the-counter products used to treat illnesses in humans and animals. Brand-name drugs have patent protection. This industry does not include nutritional supplement or cosmetics manufacturers.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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