Competitive Analysis of U.S. Pharmaceutical Industry, 2011
- ID: 1845470
- June 2011
- Region: North America, United States
- 65 Pages
- Indagatio Research
This report is a detailed analysis of leading pharmaceutical companies in the U.S. pharmaceutical industry. Key players analysed in the report are – Pfizer, Merck, AstraZeneca, Novartis and Eli Lilly.
Comparative analysis of companies is done on the basis of their sales and profits and other financial information. Detailed ratio analysis compares these companies on the basis of their revenue growth, profitability, efficiency, financial strength and investment returns.
This report also presents a brief profile and SWOT analysis of these companies along with their financial analysis and ratio analysis vis-à-vis industry. Lastly, this report analyses the M&A activity in the U.S. Pharmaceutical Industry in recent years.
Key Report Takeaways
- U.S. healthcare spending in 2010 was US$2.3 trillion or 16% of GDP, more than any other country in the world. United States is the largest pharmaceutical market globally, with 2010 sales of US$307 billion or 40% of global sales.
- In 2010, U.S. pharmaceutical sales grew at 2. 3%; and since 2001 market has grown at a CAGR of 6. 6%. Pharmaceutical sales in the United States are expected to reach US$328 billion in 2011 and up to US$420 billion by 2015; growing at a CAGR of 6.4% between 2010 and 2015.
- Highly competitive industry with top 5 companies accounting for leading the pack is Pfizer with a market share of 8.52% followed by Merck (6.11%), AstraZeneca (5.95%), Novartis (5.1%) and Eli Lilly (4.65%).
- Merck, AstraZeneca and Eli Lilly had the best profit margins among the peer group while Pfizer and Eli Lilly had better financial condition and efficiency ratio. In terms of investment ratios, AstraZeneca and Eli Lilly are better placed than their peers.
- In last 2 years, apart from Merck, all other companies ended the period with a positive growth in their share prices with Novartis leading the peer group with 17% increase in its share prices.
- With most of the Big Pharma companies already facing or likely to face patent challenges for their blockbuster products, the companies have been looking towards M&As and in-licensing activities to make up for the loss of revenues that will arise with key products losing patent exclusivity.
In recent years, global pharmaceutical industry has undergone dramatic changes, spurred on by pricing pressures, the emergence of new channels and new markets, considerable generic growth and the development of specialist driven, low volume products. This is opposed to high value, high volume primary care blockbuster products.
Global financial crunch further dented any growth opportunities that pharma giants could have explored. Despite these constraints, global pharmaceutical industry grew at an annual growth rate of 3.5% in 2009 and 5.2% in 2010. In 2010, global pharmaceutical industry generated revenues of more than US$850 billion, compared to US$808 billion in 2009 and US$781 billion in 2008. Over the last decade, the industry has grown at a compound annual growth rate (CAGR) of 8.8% from US$365 billion in 2000. SHOW LESS READ MORE >
1.1. Key Takeaways
1.2. Research Methodology
1.3. Industry Definition
2. U.S. Healthcare Sector
3. Industry Overview
3.1. Global Pharmaceutical Industry
3.2. U.S. Pharmaceutical Industry
3.3. Industry Segmentation
3.3.3. Lipid Regulators
3.4. Industry Forecast
4. Generic Drugs Market Assessment
4.1. Legislative Origin of Generic Drugs
4.2. Generic Drug Pricing
4.3. Generic Industry Trends
4.4. API Manufacturing Industry
5. Distribution and Supply Chain Analysis
5.1. Pharmaceutical Manufacturers
5.2. Wholesale Distributors
5.4. Pharmacy Benefit Managers (PBMs)
6. Trend Analysis
6.1. Generics Market Continues to Evolve
6.2. Soaring Prices of Branded Prescription Drugs
6.3. Growth in R&D Spending
6.4. Growing Pharmaceutical Outsourcing Market
6.5. Focus on Pharmerging or Emerging Markets
6.6. Growing Trends towards IT Outsourcing
7. Growth Drivers and Constraints
7.1. Patents and Intellectual Property Rights
7.2. Competition from International Players
7.3. Industry Consolidation
7.4. Aging Populations
7.5. Technological Developments
7.6. Changing Consumer Profile and Decreasing Influence
7.7. Liability Issues
7.8. Corporate Social Responsibility
8. Government Policies and Regulations
8.1. Healthcare Reforms of 2010
8.2. Health Care and Education Reconciliation Act of 2010
8.3. Expanded & Improved Medicare for All Act (H.R. 676)
8.4. FDA Approvals Process
8.5. Drug Price Competition and Patent Term Restoration Act
8.6. Regulation for Drug Distribution
8.7. Import and Re-Import of Prescription Drugs
9. Competitive Landscape
9.1. Competition Overview
9.2. Analysis of Key Players
9.2.1. Pfizer Inc.
9.2.2. Merck & Co., Inc.
9.2.3. AstraZeneca Plc
9.2.4. Novartis AG
9.2. 5. Eli Lilly & Co.
10. Mergers & Acquisitions Assessment
List of Figures
Figure 1: Global Pharmaceutical Industry Size in USD Billion, 2000-2010
Figure 2: Market Share of Leading Pharmaceutical Markets, 2009
Figure 3: U.S. Pharmaceutical Industry Size in USD Billion, 2001-2010
Figure 4: U.S. Sales Volume of Oral Standard Units and Injectable Standard Units, 2006-2010
Figure 5: U.S. Prescriptions Pharmaceutical Volume Sales in Billion, 2001-2010
Figure 6: U.S. Pharmaceutical Industry by Leading Therapy Classes, 2010
Figure 7: U.S. Sales of Oncolocgy Drugs in USD Billion, 2006-2010
Figure 8: U.S. Sales of Respiratory Drugs in USD Billion, 2006-2010
Figure 9: U.S. Sales of Lipid Regulating Drugs in USD Billion, 2006-2010
Figure 10: U.S. Sales of Anti-Diabetes Drugs in USD Billion, 2006-2010
Figure 11: U.S. Sales of Anti-Psychotic Drugs in USD Billion, 2006-2010
Figure 12: Forecast for U.S. Pharmaceutical Industry in USD Billion, 2006-2015
Figure 13: Change in Average Relative Price of Drug with Increase in Generic Competition
Figure 14: U.S. Generic Drugs Market in USD Billion, 2005-2010
Figure 15: Shipment of Drugs Through the Supply Chain (% of Dollar Value)
Figure 16: Top Pharmaceutical Wholesale Distributors, by Revenue in USD Billion, 2010
Figure 17: Market Share of U.S. Pharmaceutical Sales by Retail Channel, 2010
Figure 18: Market Share of U.S. Prescription Drugs Sales Volume by Retail Channel, 2006-2010
List of Tables
Table 1: Top 15 Therapeutic Classes by Prescriptions Dispensed Volume in Million, 2006-2010
Table 2: Top 20 Drugs by U.S. Sales in USD Billion, 2006-2010
Table 3: U.S. Pharmaceutical Companies by Sales in USD Billion, 2006-2010
Table 4: Pfizer’s Revenues by Business Segments and Geographic Areas, 2008-2010
Table 5: Pfizer’s Revenue for Biopharmaceutical Segment, 2008-2010
Table 6: Pfizer’s Revenues of Major Drugs, 2008-2010
Table 7: Merck’s Pharmaceutical Revenues by Therapeutic Areas and Products, 2008-2010
Table 8: AstraZeneca’s Revenue by Therapeutic Area and Products, 2008-2010
Table 9: Novartis’ Revenues by Therapeutic Areas and Products, 2009-2010
Table 10: Eli Lilly’s Revenue by Products, 2009-2010
Table 11: Eli Lilly’s Revenue by Therapeutic Areas, 2008-2010
Table 12: Summary of M&A Activity in Global Pharmaceutical Industry, 2010
Table 13: Major M&A Deals in U.S. Pharmaceutical Industry, 2009-2010
Table 14: Forecast of Top 5 Oncology Products Worldwide, 2016