Australian Drugmakers Optimistic

While 75% of Australian drug manufacturers responding to a surveyconducted by Coopers & Lybrand feel that industry conditions will be tougher over the next year, they are still confident that the market will be profitable in the longer term.

50% of respondents thought conditions were difficult in the past year, and 79% said they were likely to expand in the next year, through either increasing exports, boosting investment or through acquisitions or alliances. The three main concerns these companies had were government policy, competitiveness and sales and marketing, according to the the report.

The results indicated that the industry was becoming more competitive, as government, pharmacists and consumers became more concerned about prices, and as new players entered the market, Coopers & Lybrand consumer goods group partner Patrick Medley told Reuters. Some companies could consider reducing local manufacturing as well as R&D activity, he said, and they might even consider moving operations offshore.