Pharmaceutical Industry Revenue to Grow in 2011
Pharmaceutical marketers expect sales to increase going into 2011. While the largest jumps will occur in emerging markets like China, consumers in the U.S. will be buying more medications, too. Overall, according to IMS Health, pharmaceutical companies will bring in an amount equivalent to US$880 billion in 2011, globally, which represents a growth rate of between 5-7%. All of this growth will likely be spurred by new ad campaigns.
IMS Health studies show that the U.S. remains the largest market in the world for pharmaceuticals. Total sales of these products in this country will reach $320-$330 billion in 2011. (Note that this figure does not include off-invoice discounts and rebates.)
At the same time, some drug makers expect a challenging business environment. Several well-known products will lose their patent protections in 2011 and face competition from generics. Familiar products in this situation include Lipitor, Plavix and Levaquin. Revenue loss to generics along with tight controls by health care payers may squeeze pharma company profit margins.
But IMS Senior Vice President Murray Aitken says he expects new treatment options to come online for metastatic melanoma, multiple sclerosis and acute coronary syndrome next year. Some of these new drugs will fall into the blockbuster category – defined as generating sales of more than $1 billion annually. To introduce these new medications, pharma companies will be rolling out ad campaigns to both the physician and consumer markets.
[Source: IMS Health Forecasts Global Pharmaceutical Market Growth of 5-7 Percent in 2011, Reaching $880 Billion. IMSHealth.com. 6 Oct. 2010. Web. 29 Oct. 2010]