The Pharma Report: Top 20 Pharma Companies
Loss of product exclusivity, low levels of product growth and safety issues dogged the industry in 2007, causing the US drug market to grow by 3.8%. “These trends will continue to shape the marketplace,” explains Diana Conmy, IMS Health's director of market insights. “Overall we are seeing a new lower growth environment in the US market. It was much higher in 2006 because of the Medicare Part D program, primarily. That boost did not duplicate in 2007. What we were left with were these other underlying dynamics.”
Conmy views 2007 as a year where some of pharma's bigger players finally may have reached critical mass, at least from a sales perspective.
“Whether or not they are likely to change that, I wouldn't want to predict, but if you look at the top five companies, they are the folks that (also) have big blockbusters going off patent. Additionally, some of the safety issues are also prevalent within the top 10. They have the challenges that they have to face in the market going forward.”
As larger drugmakers are impacted by the slew of patent expiries slated for 2008 (See Fig. 10), smaller or mid-size companies may be better positioned to take advantage of the current marketplace due to their involvement in specialist-driven areas, which grew by 10.5% in 2007.
Conmy adds: “The pharma industry is still very large in terms of its size and in terms of its dollar value and is still experiencing positive growth. There are still a lot of areas of unmet need. There is research and development going on to bring products to the market. We still see room for innovation. We still see room for success.”