WPCP Market Analysis and Reports | USA Conference Series

Market Analysis - WPCP 2017

The Pharma Industry is responsible for the development, production and marketing of medications. In 2012 the size of the global pharmaceutical market reached $940 billion. In monetary terms it grew by 6%. In the future the sector is expected to grow at no less than 3% to 4% a year and if this happens the global pharmaceutical market is expected to reach $1.1 trillion by 2015 and will reach $1.2 trillion in 2016 and up to $1.5 trillion by 2020 with a compound annual growth rate (CAGR) of 8.8% over the five-year period, 2015 to 2020. The global demographic, epidemiological and economic changes are transforming the pharmaceutical market. The world population is growing rapidly and is projected to raise from 7 billion in 2011 to 7.7 billion in 2020 and 9.6 billion in 2050, hence an increase in the demand for pharmaceuticals. The global pharmaceuticals market is worth US$300 billion a year, a figure expected to rise to US$400 billion within three years. Economically, the Middle East (ME) is well positioned to be the one of next growth engine of global pharmaceutical business several countries in the region enjoy robust economic growth and the highest cash reserves per capita in the world. The pharmaceutical Industry is consequently flourishing as the expanding middle class demands better care, and government healthcare spending continues to grow. The pharmaceutical market in the Middle East is likely to grow by between ten and 15 percent annually over the next three years, outstripping more mature markets, forecasts a report from URCH Publishing. The Middle East pharma markets are showing consistent growth over the last years in particular in the area of specialized medication. The market for pharmaceutical products is still expected to grow in many countries across the region.

In 2016, there were 273,320 working pharmacists and an estimated 343,550 pharmacy technicians in the U.S. workforce. This corresponds to a national average of 87 pharmacists and 108 pharmacy technicians per 100,000 populations. According to the Bureau of Labor Statistics, the total number of pharmacists in the U.S. is expected to increase by 69,700 (25%) between 2010 and 2020 and by 95,680 (35%) by 2030. In 2015, 22,960 pharmacists and 28,670 pharmacy technicians and aides served approximately 38 million Californians. This ratio of 63 pharmacists and 79 pharmacy technicians per 100,000 populations indicates that California still lags the nation despite the growing supply of pharmacy professionals throughout the state. The number of graduates has almost doubled since 2002, to approximately 13,000 today. Furthermore, an additional 17 pharmacy schools have been established over the past 4 years, meaning they have not yet had a graduating

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Fig 1. Graphical representation for continent wise market growth of pharmaceuticals

The United States is the world’s largest market for pharmaceuticals and the world leader in biopharmaceutical research. According to the Pharmaceutical Research and Manufacturers Association (Pharma), U.S. firms conduct the majority of the world’s research and development in pharmaceuticals and hold the intellectual property rights on most new medicines. U.S. government support of biomedical research, along with its unparalleled scientific and research base and innovative biotechnology sector, make the U.S. market the preferred home for growth in the pharmaceutical industry. Atlanta is considered as a world city and with a gross domestic product of $270 billion. Atlanta’s economy ranks 15th among world cities and sixth in the nation. More than 30 colleges and universities situated in the city, Atlanta is known as a Centre for higher education.

Retail pharmacists make up to 63% of all pharmacists in the U.S. and work at a variety of locations, ranging from dedicated franchises such as CVS Caremark and Walgreens to mass merchandisers such as Wal-Mart and Kroger to smaller community pharmacists. Hospital Pharmacists sometimes referred to as health system pharmacists are the second-most-prevalent pharmacist segment, comprising 26% of all pharmacists in the nation spending on medicines will reach nearly $1,100Bn in 2015, reflecting a slowing growth rate of 3-6% over the five year period compared to 6.2% annual growth over the past five years. Absolute global spending growth is expected to be $210-240Bn, compared to $251Bn since m2005.The U.S. share of global spending will decline from 41% in 2005 to 31% in 2015, while the share of spending from the top 5 European countries will decline from 20% to 13% over the same period. Meanwhile, 17 high growth emerging markets led by China will contribute 28% of total spending by 2015; up from only 12% in 2005.The next five years will also see an accelerating shift in spending toward generics, rising to 39% of spending in 2015, up from 20% in 2005.

Clinical pharmacy has a rich history of advancing practice through innovation. Although collaboration facilitates innovation, academic institutions and health care systems/organizations are not taking full advantage of this opportunity. The next few years will see spending on drugs in established markets in North America, Europe and Japan grow by just 1-4% annually. The global pharmacy market reached nearly $3.0 billion in 2012. This market is expected to grow to nearly $3.2 billion in 2013 and $4.9 billion in 2018 with a compound annual growth rate (CAGR) of 8.8% over the five-year period, 2013 to 2018.

The world population is growing rapidly and is projected to raise from 7 billion in 2011 to 7.7 billion in 2020 and 9.6 billion in 2050, hence an increase in the demand for pharmaceuticals. The global pharmaceuticals market is worth US$300 billion a year, a figure expected to rise to US$400 billion within three years. Economically, the Middle East (ME) is well positioned to be the one of next growth engine of global pharmaceutical business: several countries in the region enjoy robust economic growth and the highest cash reserves per capita in the world. The pharmaceutical Industry is consequently flourishing as the expanding middle class demands better care, and government healthcare spending continues to grow by 2020 about 9.4% of the world population (719.4 million people) will be 65 or above, compared with 7.3% (477.4 million) in 2005 (UN, 2013). Clinical advances reinforce this trend. The improvements of the past few decades have already converted some previously terminal illnesses into chronic conditions, thus increasing long-term demand for therapies to manage these diseases. Older people consume more medicines than younger people: four in five of those aged over 75 take at least one prescription product, while 36% take four or more. Therefore, the population age structure makes it possible to forecast an increase in the demand for medicines in this age group. Many producers of original medicines will have their patents expire very shortly. This “patent cliff” and the mass production of generics will cause a significant reduction in prices as a result of which the income of the pharmaceutical market will decrease by $148 billion between 2012 and 2018.