GMP Summit Market Analysis and Reports | USA Conference Series

Market Analysis - GMP Summit 2017

The global market for pharmaceutical and biopharmaceutical contract manufacturing, research and packaging was $219.9 billion in 2012. This market is estimated to reach $242.2 billion in 2013 and $374.8 billion by 2018, a five-year compound annual growth rate (CAGR) of 9.1%.
The U.S. pharmaceutical market is the world’s most important national market. Together with Canada and Mexico, it represents the largest continental pharma market worldwide. The United States alone holds some 40 percent of the global pharmaceutical market. In 2014, this share was valued around 365 million U.S. dollars. Many of the global top companies are located in the United States. In 2014, six out of the top eleven companies were U.S. based. Research-based pharmaceutical companies operate under a challenging, high-stakes business model in which the failure rate is high. The R&D and regulatory review process for new drugs can often take over a decade and require hundreds of millions, if not billions, of dollars in investments. Around half of new medicines fail in the late stages of clinical trials, and even those that succeed often fail to make a profit. Only two of out of 10 medicines generate returns that exceed average R&D costs. In the United States, more than 90 percent of biopharmaceutical companies do not earn a profit. The United States is a major hub for drug manufacturing, as imports account for only around a quarter of the market by value. Nevertheless, the sheer size of the U.S. market means that imports were valued at over $86 billion in 2015, making it the world’s largest importer of pharmaceuticals
Pharmaceutical companies have traditionally funded their internal R&D efforts totally on their own by investing 15% or more of their top line revenues to pay for these endeavours’. In addition, in order to tap into R&D going on outside their companies, pharmaceutical companies has financially supported external R&D efforts in deals with small biotech companies, research institutes, and universities. In fact, as funding for agencies like the NIH has stagnated over recent years, pharma has become an important source of funds to support early stage research.
The R&D Funding Forecast notes that there is a continuing shift in where R&D investments are being made, with fewer in the U.S. and Europe and more in Asian countries. The U.S. now accounts for less than a third of global spending, while Europe’s 34 countries account for less than 22% and Asian countries account for nearly 40%, a trend that has continued for the past five years. This trend is expected to continue through the end of the decade with China’s R&D investments surpassing those of the U.S. by about 2022. The worldwide market for pharmaceuticals is projected