Developing Markets for Pharmaceuticals, 2006-2011
The purpose of this visiongain report is to examine the prospects for the growth of pharmaceutical revenues in the developing economies of Asia, Latin America and Eastern/Central Europe at both regional and national level.
- The growth of pharmaceutical markets in the developing nations has the potential to offset serious problems currently experienced by the global industry. The principal challenge is slow growth in North America, Western Europe and Japan.
- In contrast, visiongain predicts that all the leading developing markets will exhibit strong growth from 2006-2011. Rapid economic growth and large, under-served populations will drive that expansion. There will be significant growth in sales of both branded and generic drugs through increasing demand from both public and private healthcare sectors.
Developing Markets for Pharmaceuticals, 2006-2011, examines developing pharmaceutical markets critically through comprehensive research and analysis. Visiongain applied techniques such as financial forecasting, SWOT analyses and discussion of qualitative factors. Societal, political, economic and commercial issues are covered. The result is a comprehensive market-based report with detailed analysis and informed opinion.
In particular, Developing Markets for Pharmaceuticals, 2006-2011, concentrates on the following themes:
- A forecast of the global pharmaceutical market from 2006-2011, with key issues discussed
- Forecasts of sales revenues and growth rates for leading developing markets in Asia, Latin America and Eastern/Central Europe from 2006-2011
- Drivers and opportunities in those markets
- Restraints and threats in those markets
- Discussion of key players and important therapeutic areas
- Discussion of relevant regulatory, societal and economic issues
Why you should buy this report:
- To receive a comprehensive analysis of the prospects for developing regional and national markets for pharmaceuticals in Asia, Latin America and Central/Eastern Europe from 2006-2011
- To discover predicted revenues, growth rates and other key metrics for developing markets from 2006-2011
- To determine the forces that influence pharmaceutical sales in the developing markets:
- Competitive characteristics of the market
- Regulatory, technological, societal and political issues
- Drivers and restraints
- Strengths, weaknesses, opportunities and threats
The dominant pharmaceutical markets of North America, Western Europe and Japan currently account for approximately 85% of revenues for prescription drugs. However, there is concern about the relatively low growth of those established markets in recent years. Consequently, international pharmaceutical companies are very interested in raising their profile in the developing markets of Asia, Latin America and Eastern/Central Europe.
Growth of the pharmaceutical markets in developing nations will clearly surpass that of the established markets. That situation will provide one of the greatest opportunities currently available to the international pharmaceutical industry. Many developing countries have strongly growing economies; that factor constitutes a driving force in the reform and broadening of healthcare systems. Improvements in both the quality and reach of these healthcare provisions will drive the sales of branded and generic products. Private healthcare will undergo similar developments.
Manufacturers of pharmaceuticals are currently working hard to address unmet healthcare needs in developing countries. By doing so, they are making better treatments available to millions of patients and improving the overall performance of their companies.
Table of Contents
- 1. Executive Summary: Developing Markets for Pharmaceuticals, 2006-2011
- 2. The Global Pharmaceutical Industry Faces Significant Challenges - Will Expansion into Developing Markets Prove to Be the Answer?
- 2.1 The World Pharmaceutical Market Continues to Grow at a Moderate Rate
- 2.2 The Principal Markets Are the US, Japan and Leading EU Economies - But Leading Developing Nations Are Narrowing the Gap in Pharmaceutical Revenues
- 2.3 China is the Ninth Largest World Pharmaceutical Market
- 2.4 North America, Europe and Japan Continue to Dominate the World Pharmaceutical Market, But Sales in the Developing Markets Are Increasing More Rapidly
- 2.5 High Growth in the Developing Markets
- 2.6 China is a Most Exciting Prospect for the Pharmaceutical Industry
- 2.7 Latin America Exhibits Great Promise for Growth of Pharmaceutical Revenues
- 2.8 WTO Agreements Affect Pharmaceutical Developments In Emerging Markets
- 2.9 The Continuing Success of the Pharmaceutical Industry is Dependent Upon Important Drivers and Restraints
- 2.10 Pharmaceutical Companies Will Jostle Vigorously for Position in Developing Markets
- 2.11The Pharmaceutical Sector Is Gradually Changing Its Strategic Focus to Overcome Challenges in the Market
- 2.12 Sales of Generic Products Continue to Encroach Upon the Market for Branded Drugs
- 2.13 Patent Protection Strategies Form a Cornerstone of Lifecycle Management
- 2.14 Is Innovation Declining in the Pharmaceutical Industry?
- 2.15 There Are Strong Forces Acting on Pharmaceutical Pricing In Leading Markets - The Industry Is Under Pressure
- 2.15.1 The US Branded Market Faces Significant Challenges From Generics and Parallel Trade
- 2.15.2 Mandatory Price Reductions in Europe Continue to Harass the Pharmaceutical Industry
- 2.15.3 Governmental Price Controls Are an Established Part of the Japanese Pharmaceutical Market
- 2.15.4 It Is Possible That Mandatory Cost-Controls in Germany Will Serve As A Precedent For Wider Governmental Controlling of Prices
- 2.15.5 Reducing Efficiencies in R&D Result in Concerns Over Thinning Pipelines
- 2.16 Maximising the Impact of Product Launches Yields Commercial Advantages
- 2.17 Strong Branding is Vital - Both in Established and Emerging Markets
- 2.18 Expansion Into Developing Countries Will Help to Reinvigorate The Pharmaceutical Industry from 2006-2011
- 3. The Chinese Pharmaceutical Market
- 3.1 The Chinese Market for Pharmaceuticals Will Expand to $25bn in 2011
- 3.2 Growth in National and Personal Prosperity Will Raise Demand for Pharmaceutical Products in China
- 3.3 Remaining Concerns About the Commercial Environment in China Will Act As a Restraint to Market Growth
- 3.4 The Pharmaceutical Market in China Will be Driven by the Especially Strong Performance of the Chinese Economy from 2005 to 2011
- 3.4.1 Political and Economic Reform Has Led to a Burgeoning Private Sector - International Pharmaceutical Companies Have Already Established Themselves in China
- 3.4.2 China's Economic Output May Rise to $4 Billion by 2020
- 3.4.3 Greater Expectations for Healthcare and Increasing Resources to Pay for Treatments Will Further Drive the Chinese Pharmaceutical Market
- 3.4.4 Marked Disparities Exist Between the Cities and the Rural Areas - Relative Poverty Is a Continuing Problem for China, With Implications for the Pharmaceutical Market
- 3.4.5 Both The Chinese Economy and Its Pharmaceutical Market Benefit from Having the World's Largest Population and Labour Force
- 3.4.6 Expansion of Education and Training in China Will Increasingly Benefit the Pharmaceutical Sector
- 3.5 The State Food and Drug Administration is The Main Pharmaceutical Regulator in China
- 3.6 Western Medicine is Gradually Superseding Traditional Medications in China
- 3.7 Yangzijiang Pharmaceutical Was the Market Leader in 2005 With International Pharmaceutical Leaders Also Performing Well
- 3.7.1 Novartis Is a Leading Pharmaceutical Investor in China
- 3.7.2 Pfizer Reported Initiatives to Expand its Presence In China and To Align Itself More Closely With Healthcare Authorities
- 3.7.3 Novo Nordisk Recently Announced Expansion of Production in China
- 3.8 Mandatory Pricing Reductions Cause Some Concerns to the Industry
- 3.9 The Centralised Tendering System Has an Effect on Pharmaceutical Revenues
- 3.10 Counterfeiting and the Violation of Patents Are Still Problematical In China
- 3.10.1 Protection of Intellectual Property is Gradually Improving In China But Serious Concerns Remain
- 3.10.2 Many Sales of Counterfeits and Illegal Generics Occur via the Internet
- 3.10.3 Pfizer Recently Initiated an Anti-Counterfeiting Programme in Shanghai
- 3.10.4 The Chinese Authorities Are Tightening Regulations and Enforcement
- 3.11 Visiongain Concludes That China is The Largest and Most Attractive Developing Market
- 4. The Indian Pharmaceutical Market
- 4.1 The Indian Pharmaceutical Market Will Expand Rapidly from 2005-2011
- 4.2 The Indian Pharmaceutical Market Will Benefit from Many Important Drivers
- 4.3 Potential for Growth In the Indian Market Is Exciting, But Poverty and Lack of Developments Remain Serious Hurdles
- 4.4 India Is the Second Fastest Growing Major Economy After China
- 4.5 Political And Economic Reforms Have Eased India's Transition into the Modern, Globalised Economy
- 4.6 Widespread Poverty Remains a Major Problem in India - There is a Vast Potential Market for Pharmaceuticals But Usually Only Limited Resources for Purchasing Branded Drugs
- 4.7 India Has an Expanding Professional Class Which Serves As a Strong Driver of Growth in The Pharmaceutical Market
- 4.8 Domestic Companies Generated 75% of Sales in the Indian Pharmaceutical Market in 2005
- 4.8.1 Leading International Brands are Aimed at More Exclusive Market Niches Than Cheaper Domestic Products
- 4.8.2 India Has a Particularly Strong Generics Industry - With the Profile of That Sector Growing Internationally Despite Reduced Domestic Opportunities
- 4.8.3 The Re-Introduction of Patent Protection Will Increasingly Drive the Market for Branded Products, Especially Those From International Companies
- 4.8.4 Indian Companies Are Engaging in Joint Ventures and Spin-Off Ventures to Perform Original R&D
- 4.8.5 The Indian Pharmaceutical Sector is Attractive to Foreign Investors
- 4.9 State Governments Are Responsible for Providing Healthcare - However Patients Are Very Reliant on The Private Sector
- 4.9.1 The National Rural Health Mission (NRHM) Should Provide a Significant Boost to Public Healthcare
- 4.9.2 Physicians Often Make Prescribing Decisions Based Upon the Resources of the Patient
- 4.9.3 Changes to the Indian Pricing System are Imminent
- 4.9.4 The Government in Combination With the Gates Foundation Has Announced the Establishment of Public Health Institutes in India
- 4.10 India Currently Has A Fragmented Procedure for Drug Approval - The Establishment of a National Drugs Agency Should Rationalise the Process
- 4.11 India Is a Highly Attractive Location for R&D Activities
- 4.12 The Indian Pharmaceutical Market: Conclusions
- 5. The Russian Pharmaceutical Market
- 5.1 The Russian Pharmaceutical Market Will Expand to $7.9bn in 2011
- 5.2 Drivers of the Russian Pharmaceutical Market
- 5.3 Potential for Growth In the Russian Market Is Exciting, But Poverty and Lack of Developments Remain Serious Hurdles
- 5.4 Rapid Development of The Post-Communist Russian Economy Has Led to Economic Instability and Widespread Poverty
- 5.5 The Russian Economy Is Growing Steadily, With an Expanding Market for Pharmaceutical Products
- 5.6 While Healthcare in Russia is Mostly Provided by the State, There is a Growing Market for Privately-Funded Healthcare
- 5.7 Retail Prescription Sales Drive the Russian Pharmaceutical Market
- 5.8 The Highest Revenue-Generating Companies in the Russian Prescription Drug Market Are International Companies
- 5.9 The Ministry of Health Regulates Pharmaceuticals via a Complex System
- 5.9.1 Several Mechanisms Regulate Drug Prices
- 5.10 Generic Products Predominate in the Highly Competitive Russian Pharmaceutical Market
- 5.10.1 Ranbaxy May Acquire Leading Russian Generics Company Akrikhin
- 5.11 Counterfeit Pharmaceuticals Inundate the Russian Market
- 5.12 The Russian Market for Pharmaceuticals: Conclusions
- 6. Developing Pharmaceutical Markets in Asia
- 6.1 Asia Constitutes the World's Largest Developing Market for Pharmaceuticals, With Immense Potential for Growth from 2005 to 2011
- 6.2 Developing Asian Pharmaceutical Markets Have Important Advantages for Companies
- 6.3 Low Per Capita Healthcare Spending Constitutes the Most Significant Restraint to the Asian Pharmaceutical Market
- 6.4 It is Not Yet Clear How Well Public and Private Initiatives Will Raise Standards of Healthcare Consistently in Asia
- 6.5 Prices in Asia Face Increasing Pressure from Governmental Controls and Market Forces
- 6.6 Protection of IP is a Key Concern in Asia
- 6.7 Markets for Generics Will Show Continuing Growth as Asian Markets Depend Heavily on Basic Drugs
- 6.8 The Asian Market Will Be Strongly Driven by Growth in Key Therapeutic Categories
- 6.9 The Pharmaceutical Market in South Korea
- 6.9.1 The US Welcomes South Korea's New Policy on Pharmaceuticals
- 6.10 The Pharmaceutical Market in Turkey
- 6.11 The Pharmaceutical Market in Taiwan
- 6.12 The Pharmaceutical Market in Indonesia
- 6.13 The Pharmaceutical Market in the Philippines
- 6.14 The Pharmaceutical Market in Thailand
- 6.15 Overview of Developing Pharmaceutical Markets in Asia
- 7. Developing Pharmaceutical Markets in Latin America
- 7.1 Latin America Will Provide a Very Large and Fast Growing Market for Pharmaceutical Products from 2005 to 2011
- 7.2 Latin American Pharmaceutical Markets Are Driven By Several Important Factors
- 7.3 As In Other Developing Regions, Widespread Poverty Remains A Serious Limiting Factor
- 7.4 Growth in GDP Will Drive Growth in The Latin American Pharmaceutical Markets
- 7.5 Protection of IP and Other Regulatory Issues Will Remain Prominent in Latin America
- 7.5.1 Governmental Intervention Will Attempt to Widen Access to Medications
- 7.5.2 IP Issues Remain Contentious in Parts of Latin America
- 7.5.3 There are Also Concerns About Safety and Efficacy of Domestic Products
- 7.6 Significant Challenges Remain for the Public and Private Sectors in The Improvement of Healthcare in Latin America
- 7.7 The Pharmaceutical Market in Mexico
- 7.8 The Pharmaceutical Market in Brazil
- 7.9 The Pharmaceutical Market in Argentina
- 7.10 The Pharmaceutical Market in Venezuela
- 7.11 The Pharmaceutical Market in Puerto Rico
- 7.12 Overview of Developing Pharmaceutical Markets in Latin America
- 8. Developing Pharmaceutical Markets in Eastern and Central Europe
- 8.1 Pharmaceutical Markets in Eastern and Central Europe (CEE) will Develop Strongly as Governments Attempt to Close the Gaps Between East and West
- 8.2 Developing Central and Eastern European Pharmaceutical Markets Have Many Advantages
- 8.3 As In Other Developing Regions, Widespread Poverty Remains A Serious Limiting Factor
- 8.4 Funding Significant Improvements in Healthcare Will Be a Challenge in Developing CEE Nations
- 8.4.1 Economic Growth in the CEE Region is Strong With Further Economic Benefits Expected
- 8.4.2 Russia Has the Strongest Fiscal State in the Region, But the New EU States Have Also Benefited
- 8.4.3 Improving Healthcare Provision Remain a Priority for CEE Governments
- 8.4.4 Accession to the EU Will Benefit Some States But Increase Disparities in Healthcare Provision in the Region
- 8.4.5 EU Accession Will Make the Environment for Generics Manufacturers More Difficult But Should Benefit Sales of Branded Pharmaceuticals
- 8.5 Improving Healthcare in Central and Eastern Europe Will Constitute Both a Great Challenge and Opportunity for Governments and the Pharmaceutical Industry
- 8.6 The Pharmaceutical Market in Poland
- 8.7 The Pharmaceutical Market in Hungary
- 8.8 The Pharmaceutical Market in the Czech Republic
- 8.9 Overview of Developing Pharmaceutical Markets in Central and Eastern Europe
- 9. Conclusions
- 9.1 China Will Produce the Largest Revenues of All the Developing Pharmaceutical Markets As Well As the Highest Growth Rate
- 9.2 Overall Growth of the Leading Developing Markets from 2005-2011 Will Be More than Twice that of the Global Pharmaceutical Market
- 9.3 The Leading Developing Markets Combined Will Generate More Than a Sixth of Global Pharmaceutical Revenues in 2011
- 9.4 The Main Drivers of Developing Markets Will Be Increasing Prosperity and High Un-met Needs for Modern Treatments
- 9.5 The Main Restraint to Growth Will Be Continuing Poverty in the Developing World
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