Global pharmaceutical market remains in declining growth trend

The global pharmaceutical market continued to show declining growth through 2010. According to new data from advisory firm Decision Resources’ Pharmaview suite, global pharmaceutical sales grew year-over-year by a mere 3.2% to reach $669 billion, compared with 3.5% year-over-year growth in 2009 and 7.5% year-over-year growth in 2008. Over the next seven years, the global market is expected to record a compound annual growth rate (CAGR) of 2.2 percent, reaching $778 billion in 2017.

In the USA, sales continued to stagnate, with 0.7% year-on-year growth in 2010, increasing to $283 billion. The US market will continue to idle, with an expected compound annual growth rate (CAGR) of 1.7% between 2010 and 2017, reaching $318 billion in 2017.

“The limited growth is not surprising as patent expires, payer cost-containment strategies and lack of research and development productivity continue to negatively impact the pharmaceutical market,” said Decision Resources’ Pharmaview director Alasdair Milton. “In response, many large pharmaceutical companies are revamping R&D efforts, diversifying their business models into consumer health and generics, and collaborating with small biotechs and peer companies. They are also looking at emerging markets; while the sheer size of patient numbers involved make these geographies attractive targets, companies should realize that doing business in these areas poses its own unique challenges,” he pointed out.