Melbourne, Australia (PRWEB) August 06, 2012
The Pharmaceutical Product Manufacturing industry is an important component of the pharmaceutical sector. IBISWorld anticipates that the industry will generate revenue of $9.58 billion in 2012-13, up marginally (0.4%) from $9.46 billion in 2007-08. This will equate to an annualised growth rate of just 0.3% over the five years through 2012-13. According to IBISWorld industry analyst Arna Richardson, “While the industry is a net importer, with imported product satisfying about two-thirds of domestic demand, it is also one of Australia's largest high-technology exporters”. In the near term, the industry is expected to continue its gradual transformation process in view of slight revenue growth, declining research and development (R&D) productivity, increasing competitive pressures and rising safety concerns. Continued global industry rationalisation may also have implications for the level of pharmaceutical manufacturing and R&D undertaken in Australia.
The industry will continue to be affected by the expiration of patent protection of some of the world's key drugs between 2011 and 2015, including the world's largest selling drug Lipitor, for which patent protection expired in late 2011. “The pressure for change will escalate as major players lose exclusive manufacturing rights to some of the most profitable drugs in history,” Richardson says. This will result in the adoption of new business models, as industry participants seek to evolve in order to ensure their continued survival. Over the five years through 2017-18, industry revenue is expected to grow despite the effects of patent expirations.
The major global pharmaceutical groups dominate the local industry, although only a small number are engaged in secondary or actives manufacture (active pharmaceutical ingredients), with an increasing number involved in just the later stages of the manufacturing process such as dispensing and packaging, and the fill and finish stage. A large number of players also restrict their activities in Australia purely to distribution. The Pharmaceutical Product Manufacturing industry in Australia is deemed to have a medium level of market share concentration. This partly reflects the number of mergers that have occurred in recent years. Given the highly globalised nature of the industry, concentration will continue to rise gradually, in line with the increasing concentration levels on the world stage. The top four players are Pfizer Australia Holdings, GlaxoSmithKline Holdings, AstraZeneca and Sanofi-Aventis Australia.
For more information, visit IBISWorld’s Pharmaceutical Product Manufacturing report in Australia industry page.
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IBISWorld industry Report Key Topics
The Pharmaceutical Product Manufacturing industry comprises companies that manufacture various medicinal and pharmaceutical products, including drugs, medicines (including herbal medicines), medicinal chemicals as well as nappies and feminine hygiene products. Industry products are then either distributed by the manufacturer or via wholesalers to hospitals, pharmacies and other retail outlets such as supermarkets.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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 http://www.ibisworld.com.au or call (03) 9655 3886.