ХИМИЯ И ХИМИЧЕСКИЕ ТЕХНОЛОГИИ / 4. Химико-фармацевтическое производство

Gunchenko M.V, Dekhtiarenko N.V., Galkin O.Yu.

National Technical University of Ukraine "Kyiv Polytechnic Institute", Ukraine

WORLD PHARMACEUTICAL MARKET TRENDS ANALYSIS

The pharmaceutical market is one of the most innovative and profitable segment of the global economy. The status of the pharmaceutical industry of the country is one of the key indicators which show national economic development. The global pharmaceutical market at the present stage of development has its specified characteristics. The pharmaceutical market grows relatively rapidly and brings high returns (Fig. 1). The figure shows the size of the world pharmaceutical market, USD in billions. It shows the percentage growth of the market compared to the previous year. Lower growth rate in 2008-2010 is related with the entry of the cheaper generics and the global financial crisis.

Fig. 1. The global pharmaceutical market in 2003-10 [1]

On a geographic basis (Fig. 2), the leaders are developed countries, including the United States (310,6 billion. U.S. dollars), Germany, France, Italy, Spain, United Kingdom (147,4 billion U.S. dollars) and Japan (96,5 billion of USD). Slowing growth of pharmaceutical markets is forecasted for the USA, Europe and Japan, which average annual growth between 2006 - 2010 was respectively 4,6%, 5,6% and 2,6%. The rapid average annual growth between 2006 – 2010 had pharmaceutical markets of China – 23,9%, Brazil – 14,1%, India – 15,7%, Russia – 20,0%. For Ukraine, the growth rate is 11,8%.

Fig. 2. The global pharmaceutical market on the geographic basis [1]

China, which until recently was focused in the generics manufacturing, is one of the world's leader in biotechnology industries today and the main competitor of Western countries. Next to the China are India, Brazil and Russia. Countries with the promising markets are Mexico, Turkey, Poland, Venezuela, Ukraine, Argentina, Indonesia, South Africa, Romania, Thailand, Pakistan, Vietnam. One of the pharmaceutical market important characteristics is the leadership of the companies which implement innovations, including latest biotechnological researches. Brand drugs have patent protection (20 years of monopoly rights), which give companies the right to fix a monopoly prices on these drugs and return extremely high profits. There are pharmaceutical companies Roche Holding, Pfizer, Novartis, Johnson & Johnson, Sanofi-Aventis, GlaxoSmithKline, Merck in the list of the world twenty leaders on R&D (research and development) spending. USA share half of the world's R&D spending (62.27 billion of USD from 138.74 billion) (Fig. 3).

There is redistribution between brand and generic drugs spending in the structure of the global pharmaceutical market. If in 2005 spending for branded products were 70% for generics 20%, so in 2010 spending were 64% and 27% respectively. This is associated with the patents expiry of brand drugs which were created 20-25 years ago.

Fig. 3. Global R&D spending in the pharmaceutical industry

Key developments are targeted to the developed countries market, but do not fight against infectious diseases in developing countries. This is because pharmaceutical companies can receive high profits from the sales of drugs against "civilization diseases".

References.

1. IMS Health Market Prognosis http://www.imshealth.com.

2. The Pharmaceutical Industry in Figures // European Federation of Pharmaceutical Industries and Associations. – 2011. - www.efpia.eu.