Pharmaceutical Manufacturing

First Research, Inc.
December 22, 2014
10 Pages - SKU: FRRS5418006
Countries covered: United States

Pharmaceutical Manufacturing

Brief Excerpt from Industry Overview Chapter:

Companies in this industry manufacture and process pharmaceutical products. Major companies include Bristol-Myers Squibb, Eli Lilly, Johnson & Johnson, Merck & Co, and Pfizer (all based in the US), as well as AstraZeneca (UK), Bayer (Germany), GlaxoSmithKline (UK), Novartis (Switzerland), Roche Holding (Switzerland), and Sanofi (France).

The global pharmaceutical manufacturing industry generates more than $1 trillion in annual revenue. Worldwide spending on medicines is increasing due to economic growth in developing nations and the rising cost of specialty drugs. The US and the EU remain the largest importers of pharmaceuticals, but manufacturers are targeting emerging economies for growth. Key growth opportunities include Brazil, China, India, and Russia (the BRIC nations).

The US pharmaceutical manufacturing industry includes about 2,200 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $200 billion.

COMPETITIVE LANDSCAPE

Demand for pharmaceuticals is driven by the desire to cure illness and disease. The profitability of individual companies depends on their ability to discover and market new drugs. Large companies benefit from their economies of scale in research, manufacturing, and marketing. Small companies can compete effectively by specializing in drugs that target one or two specific ailments and by partnering with larger drugmakers. The US industry is highly concentrated: the 50 largest companies account for more than 80 percent of revenue.

The pharmaceutical manufacturing industry is marked by rapid advances in scientific knowledge that produce ever-more effective medicines. The traditional drug manufacturing industry increasingly...



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