By: Azhar Azam
Our life is throttled by daunting challenges to earn, grow, and prosper but in the process of getting all the amenities; we compromise the most important fortune, the health. At the same time, when billions pursue to harbor or restore their health; millions earn related to drug industry including pharmaceuticals, consumer health, medical devices, diagnostics, and vaccines etc.
It is not just the thirst of money and power that drives us ailing; there are wars and conflicts across the world that aids a doughty impetus to the business of titanic pharmaceutical industry.
Where lethal weapons of “developed-nations” destroy infrastructure and massacre people, their drug “cure” them and at pricey costs. So besides arms, construction, surveillance sectors; drug industry is also one of the major beneficiaries of wars and conflicts.
And don’t forget that many doctors who are provided sizzling incentives in terms of kick-backs, sponsored foreign travels, and giveaways for prescribing company’s brands; varies by region. And all of them rise over the shoulders of their market; the patients.
US Centers for Medicare and Medicaid Services (CMS) operates a federal Open Payments program, made public every year; that collects information about the payments, drug and device companies made to physicians and teaching hospitals on account of travel, research, gifts, speaking fees, and meals.
Open Payments Data has published total records of 28.2 million for the period from 2012 to 2015 on January 17, 2017. According to the data, 1,868 companies paid a total of $16.6 billion to 812,000 physicians and 1,180 teaching hospitals in the United States for the period.
The data also includes ownership interests of physicians or their family members in these companies. The program is paradigm for other countries to serve as a watchdog on physicians’ interests, influences, and researches.
A study conducted by Genevieve Pham-Kanter, PhD, says that two-third of Americans see doctors who got paid by the drug companies. Nearly 65% of the doctors surveyed by the Assistant Professor had received payments or gifts from pharmaceutical or medical device companies.
“These findings tell us that if you thought that your doctor was not receiving any money from industry, you’re mostly likely mistaken”, she said.
Global Pharmaceuticals Industry Landscape
The worldwide pharmaceuticals industry was estimated at $1-trillion in 2015 and is expected to grow at CAGR of 4.9% to reach at $1.3 trillion by 2020, according to “2016 Top Markets Report-Pharmaceuticals” released by International Trade Administration, Department of Commerce, United States of America.
United States, $333 billion is the largest pharmaceuticals market in the world; nearly three time more than its closest rival, China ($108 billion). Its total healthcare expenditure is $3.12 trillion; 17.4% of the GDP that includes government and private healthcare expenditures of $1.49 trillion (47%) and $1.63 trillion (53%) respectively. Japan, Germany, France, Brazil, Italy, UK, Canada, and Spain are the other major pharmaceutical markets.
Evaluate Ltd. in its “EvaluatePharma World Preview 2016” observed top-20 companies in USA ($250bn), Europe ($110.7bn), and Japan ($52.3bn) who sold $413.0 billion of prescription drugs; 55.6% of total worldwide prescription drugs sales ($741.5 billion).
Top-15 Pharmaceutical Companies by Drug Sales in 2016
According to PharmaCompass, top-15 pharmaceutical companies worldwide generated revenue of $550.0 billion in 2016; including drug sales of $455.9 billion. The companies’ rankings in drug sales for 2016 were:
1. Pfizer - $51.1bn
2. Novartis - $48.8bn
3. Roche - $40.6bn
4. Merck & Co. - 35.2bn
5. GlaxoSmithKline - $34.9bn
6. Johnson & Johnson - $33.5bn
7. Sanofi - $32.7bn
8. Gilead - $29.9
9. Abbvie - $25.6bn
10. Bayer - $23.9bn
11. Amgen - $21.9bn
12. AstraZeneca - $21.3bn
13. Teva - $20.7bn
14. Eli Lilly - $18.1bn
15. Bristol-Myers Squibb - $17.7bn
Top-20 Blockbuster Drugs in 2016
Blockbuster drugs are referred to the drugs that generate revenue of $1 billion a year for the pharmaceuticals companies producing them. Medications for diabetes, cholesterol, high blood pressure, asthma and cancer are few of the blockbusters drugs.
Pharmaceutical companies gain huge revenues through blockbuster drugs but the problem surfaces when their patent expires. “Once the patent expires, competitors can introduce generic versions to the market at lower price, thus leading to a major loss in the market share for the original developer.” When Pfizer lost patent protection for Lipitor in 2011, its sales fell by over 90%.
Top-15 Global Therapy Areas by Revenue for 2013-15
Our life is throttled by daunting challenges to earn, grow, and prosper but in the process of getting all the amenities; we compromise the most important fortune, the health. At the same time, when billions pursue to harbor or restore their health; millions earn related to drug industry including pharmaceuticals, consumer health, medical devices, diagnostics, and vaccines etc.
It is not just the thirst of money and power that drives us ailing; there are wars and conflicts across the world that aids a doughty impetus to the business of titanic pharmaceutical industry.
Where lethal weapons of “developed-nations” destroy infrastructure and massacre people, their drug “cure” them and at pricey costs. So besides arms, construction, surveillance sectors; drug industry is also one of the major beneficiaries of wars and conflicts.
And don’t forget that many doctors who are provided sizzling incentives in terms of kick-backs, sponsored foreign travels, and giveaways for prescribing company’s brands; varies by region. And all of them rise over the shoulders of their market; the patients.
US Centers for Medicare and Medicaid Services (CMS) operates a federal Open Payments program, made public every year; that collects information about the payments, drug and device companies made to physicians and teaching hospitals on account of travel, research, gifts, speaking fees, and meals.
Open Payments Data has published total records of 28.2 million for the period from 2012 to 2015 on January 17, 2017. According to the data, 1,868 companies paid a total of $16.6 billion to 812,000 physicians and 1,180 teaching hospitals in the United States for the period.
The data also includes ownership interests of physicians or their family members in these companies. The program is paradigm for other countries to serve as a watchdog on physicians’ interests, influences, and researches.
A study conducted by Genevieve Pham-Kanter, PhD, says that two-third of Americans see doctors who got paid by the drug companies. Nearly 65% of the doctors surveyed by the Assistant Professor had received payments or gifts from pharmaceutical or medical device companies.
“These findings tell us that if you thought that your doctor was not receiving any money from industry, you’re mostly likely mistaken”, she said.
Global Pharmaceuticals Industry Landscape
The worldwide pharmaceuticals industry was estimated at $1-trillion in 2015 and is expected to grow at CAGR of 4.9% to reach at $1.3 trillion by 2020, according to “2016 Top Markets Report-Pharmaceuticals” released by International Trade Administration, Department of Commerce, United States of America.
United States, $333 billion is the largest pharmaceuticals market in the world; nearly three time more than its closest rival, China ($108 billion). Its total healthcare expenditure is $3.12 trillion; 17.4% of the GDP that includes government and private healthcare expenditures of $1.49 trillion (47%) and $1.63 trillion (53%) respectively. Japan, Germany, France, Brazil, Italy, UK, Canada, and Spain are the other major pharmaceutical markets.
Evaluate Ltd. in its “EvaluatePharma World Preview 2016” observed top-20 companies in USA ($250bn), Europe ($110.7bn), and Japan ($52.3bn) who sold $413.0 billion of prescription drugs; 55.6% of total worldwide prescription drugs sales ($741.5 billion).
Top-15 Pharmaceutical Companies by Drug Sales in 2016
According to PharmaCompass, top-15 pharmaceutical companies worldwide generated revenue of $550.0 billion in 2016; including drug sales of $455.9 billion. The companies’ rankings in drug sales for 2016 were:
1. Pfizer - $51.1bn
2. Novartis - $48.8bn
3. Roche - $40.6bn
4. Merck & Co. - 35.2bn
5. GlaxoSmithKline - $34.9bn
6. Johnson & Johnson - $33.5bn
7. Sanofi - $32.7bn
8. Gilead - $29.9
9. Abbvie - $25.6bn
10. Bayer - $23.9bn
11. Amgen - $21.9bn
12. AstraZeneca - $21.3bn
13. Teva - $20.7bn
14. Eli Lilly - $18.1bn
15. Bristol-Myers Squibb - $17.7bn
Top-20 Blockbuster Drugs in 2016
Blockbuster drugs are referred to the drugs that generate revenue of $1 billion a year for the pharmaceuticals companies producing them. Medications for diabetes, cholesterol, high blood pressure, asthma and cancer are few of the blockbusters drugs.
Pharmaceutical companies gain huge revenues through blockbuster drugs but the problem surfaces when their patent expires. “Once the patent expires, competitors can introduce generic versions to the market at lower price, thus leading to a major loss in the market share for the original developer.” When Pfizer lost patent protection for Lipitor in 2011, its sales fell by over 90%.
Top-20 Drugs by Sales - 2016
(US$ million)
|
|||||
S.
No
|
Product
|
Active Ingredient
|
Main Therapeutic Indication
|
Company
|
Revenue
|
1
|
Humira
|
Adalimumab
|
Immunology
(Organ Transplant, Arthritis etc.)
|
16,078
|
|
2
|
Harvoni
|
Infectious
Diseases (HIV, Hepatitis etc.)
|
9,081
|
||
3
|
Enbrel
|
Etanercept
|
Immunology
(Organ Transplant, Arthritis etc.)
|
8,875
|
|
4
|
Remicade
|
Infliximab
|
Immunology
(Organ Transplant, Arthritis etc.)
|
8,234
|
|
5
|
MabThera/Rituxan
|
Oncology
|
7227
|
||
6
|
Revlimid
|
Oncology
|
6,974
|
||
7
|
Avastin
|
Oncology
|
6,715
|
||
8
|
Herceptin
|
Oncology
|
6,714
|
||
9
|
Lantus
|
Diabetes
|
6,057
|
||
10
|
Prevnar/Prevenar 13
|
Pneumococcal
7-Valent Conjugate
|
Anti-bacterial
|
5,718
|
|
11
|
Xarelto
|
Cardiovascular
Diseases
|
5,392
|
||
12
|
Eylea
|
Aflibercept
|
Ophthalmology
|
5,046
|
|
13
|
Lyrica
|
Neurological/Mental
Disorders
|
4,966
|
||
14
|
Neulasta
|
Blood
Disorders
|
4,648
|
||
15
|
Seretide/Advair
|
Respiratory
Disorders
|
4,252
|
||
16
|
Copaxone
|
Neurological/Mental
Disorders
|
4,223
|
||
17
|
Sovaldi
|
Infectious
Diseases (HIV, Hepatitis etc.)
|
4,001
|
||
18
|
Tecfidera
|
Neurological/Mental
Disorders
|
3,968
|
||
19
|
Januvia
|
Diabetes
|
3,908
|
||
20
|
Opdivo
|
Nivolumab
|
Oncology
|
3,774
|
|
Top-15 Global Therapy Areas by Revenue for 2013-15
Oncology and Diabetes remains the largest segment that has been and is forecasted to shunting the pharmaceutical market for years to follow.
Out of estimated $954.1 billion of drugs sales in 2015 by IMS Health; Oncology and Diabetes accounted for $78.9 billion and $71.4 billion respectively. In growth terms, Viral Hepatitis had the largest growth of 439.1% for 2013-15 whereas anti-hypersensitive drugs sales fell by 16.65 for the same period.
EvaluatePharma World Preview 2015 also conjectures Oncology to be the largest segment through 2020; from $79.2 billion in 2014 to 153.1 billion in 2020 at CAGR of 11.5%. Diabetes would be the second largest segment in drugs sales through 2020; from $41.6 billion in 2014 to $60.5 billion in 2020 at CAGR of 6.4%, less than half of Oncology.
Roche is predicted to lead the Oncology market with worldwide market share of 32.6% at $28.5 billion in 2020; more than three times of its rival, Celgene (9.4%). Celgene’s Revmilid (Linalidomide) however would be the top Oncology product; expecting worldwide sale of $9.6 billion.
In Diabetes, Novo Nordisk would the key player foreseeing global market share of 30%; at nearly 18.0 billion in 2020. Sanofi, Merck, and El Lilli would be competing closely for the next three spots with less than a half of Novo Nordisk. Anti-rheumatic, vaccines, and ant-virals are the other segments to grow substantially through 2020, according to the world preview.
Global Pharmaceuticals Raw Material Preview & Pakistan Standing
Nearly 80-90% of the raw material is supplied to the world by just two countries; China and India. The trend has forced even US and Europe to produce the raw material for pharmaceutical industry. Between China and India, there are about 60,000 manufacturing companies; 25% of which are either FDA approved or WHO compliant.
The total size of Pakistan pharmaceuticals market was about $2.86 in 2015 and is growing fast at a growth rate of 12% per annum. The industry meets nearly 90% of domestic pharmaceuticals needs of the country. 650 companies are manufacturing drugs in Pakistan however the top-100 takes share of around 98.9% of the total market.
Out of estimated $954.1 billion of drugs sales in 2015 by IMS Health; Oncology and Diabetes accounted for $78.9 billion and $71.4 billion respectively. In growth terms, Viral Hepatitis had the largest growth of 439.1% for 2013-15 whereas anti-hypersensitive drugs sales fell by 16.65 for the same period.
EvaluatePharma World Preview 2015 also conjectures Oncology to be the largest segment through 2020; from $79.2 billion in 2014 to 153.1 billion in 2020 at CAGR of 11.5%. Diabetes would be the second largest segment in drugs sales through 2020; from $41.6 billion in 2014 to $60.5 billion in 2020 at CAGR of 6.4%, less than half of Oncology.
Roche is predicted to lead the Oncology market with worldwide market share of 32.6% at $28.5 billion in 2020; more than three times of its rival, Celgene (9.4%). Celgene’s Revmilid (Linalidomide) however would be the top Oncology product; expecting worldwide sale of $9.6 billion.
In Diabetes, Novo Nordisk would the key player foreseeing global market share of 30%; at nearly 18.0 billion in 2020. Sanofi, Merck, and El Lilli would be competing closely for the next three spots with less than a half of Novo Nordisk. Anti-rheumatic, vaccines, and ant-virals are the other segments to grow substantially through 2020, according to the world preview.
Global Pharmaceuticals Raw Material Preview & Pakistan Standing
Nearly 80-90% of the raw material is supplied to the world by just two countries; China and India. The trend has forced even US and Europe to produce the raw material for pharmaceutical industry. Between China and India, there are about 60,000 manufacturing companies; 25% of which are either FDA approved or WHO compliant.
The total size of Pakistan pharmaceuticals market was about $2.86 in 2015 and is growing fast at a growth rate of 12% per annum. The industry meets nearly 90% of domestic pharmaceuticals needs of the country. 650 companies are manufacturing drugs in Pakistan however the top-100 takes share of around 98.9% of the total market.