Emerging Business Models in the Pharmaceutical Industries ...

Geographic Overview
Introduction
North America is the major pharma market, but Europe is also
receiving increased attention from the main players. While the
geographic behaviour of the pharma market is directly proportionate
to a country’s spending capacity, awareness, and government
regulations, while size of population does not have any real effect.
North America - Leading Pharma Market
North America is the largest pharma market and has the least
restrictions. America has larger funding than European and Asian
countries, and growth is expected to continue. R&D investment is
also higher, with 13 approved NME companies. Companies in the
US show increasing export sales. The ban on drug imports from
Canada is believed to have resulted in windfall profits of $150 billion
for the US pharmaceutical industry, and the issue has provoked
passionate debate on campaign trails.
European Pharma Industry Gaining Momentum
The EU countries comprise the second largest market for pharma
companies. Saturation in the North American market has led all the
pharma companies to focus on the EU market. However, since the
government is the biggest drug buyer in the EU, it can impose
restrictions on the pricing and profits of pharma companies.
This year the European market has been affected by the new
Refund list, cuts in regulated drug prices, growing market
competition, and tax cuts. "The market is growing more slowly than
we expected this year. But in the future Poland will be one of
Europe's most attractive drug markets. I expect it to grow by 8-10%
in the coming years“, says Jacek Szwajcowski, chief executive of
PGF, Poland's largest drug distributor.
Billion US $
250
200
150
100
50
Geographic Distribution of the Pharma
Market Size
Strategic Analysis of the Pharma Market, Future Revenue Models and Key Players 16
16%
0
6% 6%
24%
North America
48%
North America
Europe
Japan
Key Geographic Markets
Europe
Source: JSB Intelligence
Japan
Asia, Africa and Australia
Asia, Africa and
Australia
Latin America
Latin America
2000
2001
2002
2003