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Research and Markets: North America Pharmaceuticals Sectors: A Company and Industry Analysis (July 2008) - in 2007, Total Drugs Spending in Canada Totalled C$27 Billion (US$26.75 Billion)

Posted on: Friday, 10 October 2008, 15:00 CDT

Research and Markets (http://www.researchandmarkets.com/research/0f0df7/north_america_phar) has announced the addition of the "North America Pharmaceuticals Sectors : A Company and Industry Analysis (July 2008)" report to their offering.

This report updates the previous North American pharmaceuticals report, focusing on the markets in Canada and the United States

Current Environment - Key Points

- During 2007, most Big Pharma companies, including Bristol-Myers Squibb, AstraZeneca, GlaxoSmithKline Plc, Pfizer Inc, Merck & Co, Johnson & Johnson and Novartis announced plans to cut staff

- Over the past six months, few major blockbuster M&A deals took place

There were, however, several acquisition deals and licensing and/or development alliances

- The Canadian pharmaceutical sector saw generally poorer sales performances over the last six months, with key companies seeing sluggish results overall

- The Canadian pharmaceutical industry appeared to ride on the global pharmaceutical M&A wave, with pharmaceutical M&A activity seeming to pick up in the past six months

Industry Profile - Key Points

- While the US market remains the largest single market, its growth rate fell dramatically, resulting in the US market's contribution to global growth declining to its lowest point ever

- Most pharmaceutical companies in the US are highly research-oriented and spend billions of dollars on drug research investment

- Growth wise, investment in R&D by US-based pharmaceutical research companies grew moderately last year, despite a challenging economic environment and a continuing sharp deceleration in drug spending growth

- There were several key policy and regulatory changes in the US pharmaceutical industry over the last year

A lot of these changes, like others in previous recent years, focused on regulating the pharmaceutical industry more efficiently and improving public access to safe food and drugs

- In 2007, total drugs spending in Canada totaled C$27 billion (US$26.75 billion)

- Over the last ten years, drugs have represented the second largest component of Canadian health spending after hospitals

- One of the major contributing factors to market growth moderation in 2007 was a significant expansion in the use of generic products due to patent expiries of several major brand-name products

Market Trends and Outlook - Key Points

- Faced with poor R&D productivity, patchy pipelines, expiring patents, and regulatory pressure over safety, major pharmaceutical companies are continuing to turn to the potentially lucrative biotech industry for innovation

- The generic drugs sector of the US prescription drugs market continues to grow steadily, both in terms of prescriptions and sales

- Soaring drug development costs over the past decade are driving pharmaceutical companies to look for better ways to conduct clinical research

Driven by mounting market pressures, companies are increasingly implementing outsourcing strategies to boost revenues through faster drug development

- Sales levels and the rate of market growth in the US pharmaceutical industry are set to slow even further in 2008

- Some of the drivers include a leveling off of growth from the introduction of the Medicare Part D prescription drug benefit in the US, patent expiration of branded products and an associated increase in the use of lower-cost generics

- Spending on prescribed and over-the-counter drugs in Canada outpaced overall health spending last year, and grew faster than the rate of inflation.

Key Topics Covered:

Current Environment - US - Sector Overview - Sector Performance - Drug Industry Leaders - Mergers, Acquisitions and Alliances Current Environment - Canada - Sector Overview - Sector Performance - Drug Industry leaders - Mergers, Acquisitions and Alliances Industry Profile - US - Industry Size and Value - Research and Development - Policy and Regulatory Environment Industry Profile - Canada - Industry Size and Value - Research and Development - Policy and Regulatory Environment Market Trends and Outlook - US - Pharma-Biotech Alliances on the Rise as Innovation Drops - Generics Gain Market Share - Pharmaceutical Outsourcing Becomes Imperative Market Trends and Outlook- Canada - Drug Expenditure Takes a Larger Slice of Healthcare Spending - Generics in Canada Cost More than in the US - Market Outlook Currency Conversion Table The Scope of this Report Key References Comparative Data Reports Coverage

For more information visit http://www.researchandmarkets.com/research/0f0df7/north_america_phar

Source: Business Wire

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