US Rx drug market in relative decline

A study by IMS Health has forecast a relative decline for the USA's share of the global drug market, partly because of rapid expansion in some developing countries, but also because of factors which inhibit growth domestically. The report titled: IMS Health's 2008 Global Pharmaceutical Market and Therapy Forecast predicts worldwide pharmaceutical sales to expand between $735.0 million and $745.0 billion next year (see also page 17).

IMS Health estimates that treatment costs per day have fallen 20%-40% during 2007 in therapy areas affected by the loss of market exclusivity for blockbuster products, such as US drug major Merck & Co's cholesterol-lowering agent Zocor (simvastatin) and global drug behemoth Pfizer's antihypertensive Norvasc (amlodipine besylate) and selective serotonin reuptake inhibitor Zoloft (sertraline).

These are expected to continue throughout 2008, according to Mr Aitken. He noted that the expected entry of generic competitors for osteoporosis therapy Fosamax (alendronate sodium) and proton pump inhibitor Protonix (pantoprazole), marketed by Merck & Co and Wyeth Pharmaceuticals, respectively, is likely to result in 10%-25% reductions in drug treatment costs during 2008.