LONDON--(BW HealthWire)--March 23, 1999--
IMS HEALTH Annual Data Show Expanding Pharmaceutical Market Growth
Three-Way Tie for No. 1 in Global Pharmaceutical Sales
IMS HEALTH (NYSE:RX) today released data showing that the 1998
world audited pharmaceutical market grew by 7 percent over 1997. IMS
HEALTH is the world's leading provider of information solutions to the
pharmaceutical and healthcare industries.
"Momentum is accelerating in the pharmaceutical industry," said
Victoria R. Fash, chief executive officer of IMS HEALTH. "Growth is
almost half a percent greater than the 6.6 percent achieved in 1997."
"We are forecasting further expansion to 8 percent annual
compound growth worldwide over the next five years," said Fash. "Our
projections show more value is being added to the industry by new drug
launches than is being subtracted by drugs going off-patent. IMS
HEALTH has identified 29 compounds in the global pipeline with
potential to attain 'blockbuster' status, each forecast to achieve
peak annual sales of over $500 million during its patent lifetime."
"Furthermore, a new pattern of drug lifecycle management is
emerging, exemplified by the recent launches of Lipitor and Viagra,"
continued Fash. "Simultaneous multi-country launches, improved sales
force productivity coupled with direct-to-consumer promotion are
yielding higher sales, faster, in the lifecycle of a new drug. This
change is worth billions in future profitability to the industry."
The data are a snapshot of IMS HEALTH's annual World Review
report of global pharmaceutical market performance in 1998, utilizing
retail and hospital audits from over 60 countries around the world.
Growth in sales is measured in local currencies, enabling analysis
without the influence of fluctuating exchange rates. World Review is
consolidated using IMS HEALTH's on-line global database, MIDAS.Leading Countries
The top ten worldwide markets represent 84 percent of all global
audited pharmaceutical sales (TABLE I). The top ten markets represent
approximately 75 percent of all unaudited and audited sales.
The U.S., which is the largest market, grew by 11 percent to
$99.5 billion in 1998, representing nearly 40 percent of the total
worldwide market. Japan, while experiencing its second year of 1
percent negative growth as the Japanese government re-sizes
pharmaceutical pricing, remains the world's second largest market with
sales of $38.8 billion. Within the top five European markets, Germany
remains in the lead, achieving sales of $18.2 billion, representing 5
percent growth over 1997. The fastest growing Western European markets
in 1998 were Spain, growing 11 percent, and Italy, growing 9 percent
over 1997. Brazil retains it place as the seventh largest audited
world pharmaceutical market, but experienced a 5 percent negative
year-to-year growth due to economic conditions. Of the top ten
markets, all but Japan and Brazil showed accelerated growth in 1998.
"Outside of the top ten markets there is also good news," said
Jim Newell, president, IMS HEALTH global services. "Central Europe
grew at 28.5 percent, Middle East Africa at 10.1 percent, and South
East Asia at 8.4 percent, bouncing back from 6.1 percent in 1997,
which reflected the region's economic weakness that year."-0-*T
TABLE I
Leading Countries in 1998 Global Pharmaceutical Sales
1998 Percentage Percentage
RANK Sales Global Growth
US$B Sales Year-over-Year
1 United States (a) 99.5 39.6% +11%
2 Japan (a) 38.8 15.4% -1%
3 Germany (a) 18.2 7.2% +5%
4 France 14.1 5.6% +4%
5 Italy (a) 10.9 4.3% +9%
6 United Kingdom (a) 10.2 4.1% +8%
7 Brazil 6.5 2.6% -5%
8 Spain 5.3 2.1% +11%
9 Canada (a) 4.9 1.9% +1%
10 Argentina 3.6 1.4% +6%
TOTAL $ 251.3(a) includes hospital sales
Source: IMS HEALTH World Review 99. Growth in sales is measured in
Local Currency Dollars.*T
Taking into account the rest of the world, as well as mail order
in the U.S. and other channels which are not audited in our annual
review, IMS HEALTH calculates the total worldwide market for ethical
pharmaceuticals is $302 billion today.Leading Therapy Classes
The top ten therapy classes accounted for nearly 30 percent of
the total world market in 1998 (TABLE II). Three out of the leading
ten, Cholesterol & Triglyceride Reducers, Antidepressants and
Antipsychotics, are growing at 20 percent or more, year-over-year.
The Antiulcerant class, which represents treatments for stomach
ulcers, is valued at $12.9 billion, and remains the leading
therapeutic class worldwide in 1998, as it has for the past eight
years. Losec (omeprazole)(Trade name: Prilosec in the US), the world's
leading antiulcerant product, accounts for nearly 30 percent of all sales
in this class. The Cholesterol & Triglyceride Reducers class, drugs used to
reduce cholesterol in the bloodstream, grew at a very strong 20
percent, placing this class at No. 2 in the rankings. Antidepressants,
used to treat chronic depression, grew by an even greater 21 percent,
placing this class of drugs in the No. 3 position.
"Outside of the top ten classes, by far the fastest growing
sub-class is Erectile Dysfunction, which grew by 277 percent in 1998,
driven by the blockbuster launch of Viagra," said Newell. "This class
is worth $0.7 billion, and is ranked in 79th place. The second fastest
growing class is compounds used to treat heart indications, the Angiotensin II Antagonists. Currently in 56th place, Angiotensin II
Antagonists grew last year by 104 percent to $1.1 billion."
TABLE II
Leading Therapy Classes in 1998 Global Pharmaceutical Sales
RANK 1998 Percentage Percentage
Sales Global Growth
US$B Sales Year-over-Year
1 Antiulcerants 12.9 5.1% +3%
2 Cholest & Triglyceride
Reducers 9.6 3.8% +20%
3 Antidepressants 9.4 3.7% +21%
4 Calcium Antagonists Plain 8.7 3.4% +1%
5 Cephalosporins &
Combinations 6.8 2.7% -1%
6 ACE Inhibitors Plain 6.5 2.6% +4%
7 Non-Narcotic Analgesics 6.2 2.5% -4%
8 Antirheumatic Non-Steroidals 6.0 2.4% +4%
9 Antipsychotics 3.9 1.6% +30%
10 Broad Spectrum Penicillins 3.8 1.5% +4%
Leading 10 ATCs at Level 3 $73.8 29.4% +7%
Total Audited World $251.3 100.0% +7%*T
"It is worth noting that new compounds coming out of the R&D
pipeline energize an otherwise slow growth therapeutic class," said
Newell. "Celebrex, as one of the first Cox-2 inhibitors, has drawn
attention to the Non-Steroidal Anti-Inflammatory category of drugs,
which has not seen significant growth for quite some time. This bodes
well for other therapies launching in this category, such as Merck's
Vioxx, and other innovative drugs in the pipeline for lower growthcategories."
Leading Corporations
"Looking at the 1998 global sales data, we believe the top three
pharmaceutical companies are in a three-way tie for first place," said
Fash. "Novartis, Merck and Glaxo Wellcome are separated by just
millions of dollars, and it is, in our view, a race that is too close
to call (TABLE III). Novartis' strong performance of Lamisil and
Aredia in 1998 helped keep them at the top, while Merck benefited from
strong sales of Zocor, Fosamax and Cozaar. Glaxo Wellcome managed the
de-Rxing of Zantac effectively in 1998 and saw growth from Flixonase
and Serevent. Pfizer, ranked No. 4, is well-poised to jump ahead of
its fourth position based on its 1998 growth rate of 21 percent, aided
by the continued success of its cardiovascular drug Norvasc and, of
course, the early effects of the global Viagra launch," concludedFash.
Within the total audited world market, the leading 20
pharmaceutical companies account for 57.3 percent of all sales. The
percentage market share of the leading 10 companies increased slightly
in 1998, from 35.4 percent in 1997 to 36.1 percent in 1998.
Within the top 20 companies, Warner-Lambert experienced the
highest growth rate at 37 percent, thus moving up from 16th to 15th
place in the rankings. This growth was fuelled by the company's
cholesterol-reducing drug Lipitor which grew by 199 percent, and
Rezulin, a new antidiabetic drug, up by 97 percent over 1997. Eli
Lilly achieved 17 percent growth, and is ninth in the ranking, helped
by 95 percent growth of its antidepressant Zyprexa.-0-*T
TABLE III
Leading Companies in 1998 Global Pharmaceutical Sales
RANK 1998 Percentage Percentage
Sales Global Growth
US$B Sales Year-over-Year
1 Novartis 10.6 4.2% +5%
1 Merck & Co 10.6 4.2% +8%
1 Glaxo Wellcome 10.5 4.2% +1%
4 Pfizer 9.9 3.9% +21%
5 Bristol-Myers Squibb 9.8 3.9% +11%
6 Johnson & Johnson 9.0 3.6% +8%
7 American Home 7.8 3.1% +1%
8 Roche 7.6 3.0% +6%
9 Lilly 7.4 2.9% +17%
10 Smithkline Beecham 7.3 2.9% +6%
Leading 10 Corporations $90.7 36.1% +8%
11 Astra 6.9 2.8% +16%
12 Abbott 6.4 2.5% +8%
13 Hoechst Marion Roussel 6.2 2.5% +2%
14 Schering Plough 6.2 2.5% +14%
15 Warner-Lambert 6.0 2.4% +37%
16 Bayer 5.2 2.1% +1%
17 Rhone Poulence Rorer 4.6 1.8% +7%
18 Pharmacia & Upjohn 4.5 1.8% +8%
19 Zeneca 3.7 1.5% +16%
20 Boehringer Ingelheim 3.6 1.4% +6%
Leading 20 Corporations $143.9 57.3% +9%
Audited World $251.3 100.0% +7%*T
"These insights in sum show an industry that is picking up
speed," said Fash. "Our customers are using innovative R&D, their
global presence, smarter sales and marketing strategies, new
promotional techniques and entirely new ways of looking at the product
lifecycle. This is the Golden Age of the pharmaceutical industry." |
