The pharmaceutical industry is one of the vital and distinct industries as it deals with the lives of the people. At present, pharmaceutical drugs are the most preferred therapeutic treatments for the global population of 6.45 billion. The Global Pharmaceutical Industry Survey 2005 covers all these major domains of the value chain, focusing at industry and company levels. The global pharmaceutical market has grown by 5.95% to USD582.71 billion in 2005. The market has witnessed the lowest growth rate in the last five years owing to increase in patent expiries and measures taken in major markets to curtail the increasing healthcare budget. In 2005 alone, drugs worth USD12 billion have lost their patent protection. According to estimates by Cygnus Research, the global pharmaceutical market is expected to grow by 7-8% to reach a figure of USD624-629 billion in 2006.

This report provides the overview of the global pharmaceutical industry in terms of size, segments (geography, therapeutics), trends, growth rate and major therapeutic classes and drug products in the last three years. It gives an insight into the major growth drivers, issues and challenges faced by the industry and its impact on the performance, the major and widely-used technologies in drug discovery, drug delivery, manufacturing and marketing and also some of the promising technologies of the future. Outlining the overview of the major markets including the US, Europe, Japan and other emerging markets, the report also profiles the top 10 pharmaceutical companies.

The report includes regulations, regulatory bodies and major regulatory changes in 2005 in the major markets and regulations pertaining to intellectual property rights. It also gives an insight into the mergers and acquisitions (M&A) scenario in terms of driving factors, trends and the top 10 M&A in the last three years, critical success factors and the future outlook of the industry. This report is useful as an important business directional guide for professionals in Life Sciences industry as well as a key learning aid for other business professionals.

Total Pages: 172, Tables: 55, Figures: 53

Countries covered:

US
Japan
Europe
Mexico
Brazil
China

1. Executive Summary

2. Highlights

3. Industry Overview
3.1 Global pharmaceutical market, 3.2 Segmentation of the market, 3.2.1 By geography, 3.2.2 By therapeutic segment, 3.3 Major therapeutic classes, 3.4 Major products, 3.5 Demand–supply, 3.6 Trends shaping the pharmaceutical industry, 3.6.1 Increasing consolidation, 3.6.2 Increasing outsourcing market, 3.6.3 Geographical shift, 3.6.4 Increasing R&D costs, 3.6.5 Increasing dependence on biotechnology, 3.7 Conclusion, 3.8 Bibliography

4. Growth Drivers
4.1 Introduction, 4.2 Major growth drivers, 4.2.1 Increase in aging population, 4.2.2 Shifting disease patterns, 4.2.3 Increasing healthcare expenditure, 4.2.4 Increasing biotechnology based products, 4.2.5 Direct-to-consumer advertising, 4.2.6 Technological developments, 4.3 Conclusion, 4.4 Bibliography

5. Issues and Challenges
5.1 Introduction, 5.2 Major issues and challenges, 5.2.1 Decreasing R&D productivity, 5.2.2 Tightened regulatory environment, 5.2.3 Increase in patent expiries, 5.2.4 Pricing pressure owing to intense competition, 5.2.5 Realization from partnering arrangements, 5.2.6 Maximizing marketing productivity, 5.2.7 Parallel trade in the European Union, 5.3 Conclusion, 5.4 Bibliography

6. Technology
6.1 Introduction, 6.2 Technology in drug development, 6.2.1 Combinatorial chemistry and high throughput screening, 6.2.2 Chemoinformatics 6.2.3 Medical imaging, 6.2.4 Pharmacogenomics, 6.3 Technology in drug delivery, 6.3.1 Nanotechnology in drug delivery, 6.3.2 Transdermal drug delivery, 6.3.3 Chronopharmaceutical delivery, 6.4 Technology in manufacturing, 6.4.1 Process Analytical Technology, 6.5 Technology in marketing, 6.5.1 Customer relationship management, 6.6 New technologies, 6.6.1 Super computers in drug discovery, 6.6.2 Polymorph screening, 6.6.3 Microdosing in clinical trials, 6.7 Conclusion, 6.8 Bibliography

7. Major Markets
7.1 Introduction, 7.2 US, 7.2.1 Market size, 7.2.2 Market segmentation, 7.2.3 Major players, 7.1.4 Outlook, 7.2 Japan, 7.2.1 Market size, 7.2.2 Market segmentation, 7.2.3 Outlook, 7.3 Europe, 7.3.1 Market size, 7.3.2 Major markets, 7.3.3 Outlook, 7.4 UK, 7.4.1 Market size, 7.4.2 Market segmentation, 7.4.3 Outlook, 7.5 Emerging markets, 7.5.1 Mexico, 7.5.2 Brazil, 7.5.3 China, 7.6 Conclusion, 7.7 Bibliography

8. Major Players
8.1 Pfizer, 8.1.2 Financial profile, 8.1.3 Stock performance, 8.1.4 Key strategies, 8.1.5 Outlook, 8.1.6 Intellectual property assets, 8.2 Johnson & Johnson, 8.2.1 Business profile, 8.2.2 Financial profile, 8.2.3 Stock performance, 8.2.4 Key strategies, 8.2.5 Outlook, 8.2.6 Intellectual property assets, 8.3 Glaxo SmithKline, 8.3.1 Business profile, 8.3.2 Financial profile, 8.3.3 Stock performance, 8.3.4 Key strategies, 8.3.5 Outlook, 8.3.6 Intellectual property assets, 8.4 Sanofi-Aventis, 8.4.1 Business profile, 8.4.2 Financial profile, 8.4.3 Stock performance, .4.4 Key strategy, 8.4.5 Outlook, 8.4.6 Intellectual property assets, 8.5. Novartis, 8.5.1 Business profile, 8.5.2 Financial profile, 8.5.3 Stock performance, 8.5.4 Key strategies, 8.5.5 Outlook, 8.5.6 Intellectual property assets, 8.6 Roche, 8.6.1 Business Profile, 8.6.2 Financial profile, 8.6.3 Stock performance, 8.6.4 Key strategies, 8.6.5 Outlook, 8.6.6 Intellectual property assets, 8.7 AstraZeneca, 8.7.1 Business profile, 8.7.2 Financial profile, 8.7.3 Stock performance, 8.7.4 Key strategies, 8.7.5 Outlook, 8.7.6 Intellectual property assets, 8.8 Merck, 8.8.1 Business profile, 8.8.2 Financial profile, 8.8.3 Stock performance, 8.8.4 Key strategies, 8.8.5 Outlook, 8.8.6 Intellectual property assets, 8.9 Bristol-Myers Squibb, 8.9.1 Business profile, 8.9.2 Financial profile, 8.9.3 Stock performance, 8.9.4 Key strategies, 8.9.5 Outlook, 8.9.6 Intellectual property assets, 8.10 Wyeth, 8.10.1 Business profile, 8.10.2 Financial profile, 8.10.3 Stock performance, 8.10.4 Key strategies, 8.10.5 Outlook, 8.10.6 Intellectual property assets, 8.11 Conclusion, 8.12 Bibliography

9. Regulatory Aspects
9.1 Introduction, 9.2 Regulatory bodies, 9.2.1 US, 9.2.2 European Union, 9.2.3 Japan, 9.3 Laws governing the industry, 9.3.1 Regulations in the US, 9.3.2 Regulations in Japan, 9.3.3 Regulations in Europe, 9.4 International agreements on intellectual property rights protection, 9.4.1 General Agreement on Tariffs and Trade, (GATT), 9.4.2 Trade Related Aspects of Intellectual Property Rights (TRIPS), 9.4.3 The Paris Convention (PCPIP), 9.4.4 The Patent Co-operation Treaty (PCT), 9.5 Prolonging Patent Protection, 9.5.1 GATT & TRIPS, 9.5.2 The Waxman-Hatch Act, 9.6 Recent regulatory amendments, 9.6.1 US, 9.6.2 EU, 9.6.3 Japan, 9.7 Conclusion, 9.8 Bibliography

10. Mergers & Acquisitions
10.1 Introduction, 10.2 M&A drivers, 10.2.1 Need for low cost pharmaceuticals, 10.2.2 Growing generics market, 10.2.3 To replenish decreasing R&D pipeline and shrinking patented drug list, 10.2.4 Focus on areas of core competence, 10.3 M&A trends, 10.3.1 Pharmaceutical M&A accounted for more than one-fourth of total healthcare M&A in deal value, 10.3.2 Pharmaceutical deals declined in terms of number and value in 2005, 10.3.3 Smaller value deals dominated the M&A scenario in 2005, 10.3.4 Top 10 M&As (2005, 2004 and 2003), 10.4 Impact of Hexal and Eon Labs acquisition on Sandoz (Generic subsidiary of Novartis), 10.4.1 Financial impact, 10.4.2 Impact on product portfolio, 10.4.3 Impact on market penetration, 10.5 Conclusion, 10.6 Bibliography

11. Critical Success Factors
11.1 Introduction, 11.2 Success factors, 11.2.1 Alliances and acquisitions, 11.2.2 Outsourcing to low cost destinations, 11.2.3 Absorption of technological innovations, 11.2.4 Improving sales force effectiveness, 11.2.5 Critical mass, 11.2.6 Need for blockbuster drugs, 11.3 Conclusion, 11.4 Bibliography, 12. Future Outlook, 12.1 Bibliography

LIST OF FIGURES

Figure 3.1: Global Pharmaceutical Market Size & Growth Rate, 2000 – 2005, Figure 3.2: Regional nature of the Pharmaceutical Industry - 2000 & 2005, Figure 3.3: Major Therapeutic Segments of the Industry- 2005, Figure 3.4: Merger & Acquisition activity by year, 1995 -2005, Figure 3.5: Global Pharmaceutical Outsourcing Market Size, 2001 – 2005, Figure 3.6: Pharmaceutical R&D Expenditure, 1990 – 2004, Figure 4.1: Percentage of population aged 0-24 as a percentage of total population (2000-2025), Figure 4.2: Percentage of population aged 55 & above as a percentage of total population (2000-2025), Figure 4.3: Percentage distribution of DALYs by cause - Global scenario (2000-2030), Figure 4.4: Healthcare expenditure as a % of GDP, Figure 4.5: Pharmaceutical expenditure as a % of total healthcare expenditure (1993-2003), Figure 4.6: Biotech vs pharma growth (2000 - 2004), Figure 5.1: Number of new drugs approved and R&D spend (2001-2005), Figure 5.2: Patent expiries by value (2005-2010), Figure 5.3: Global sales of Prozac (2000-2003), Figure 7.1: GDP growth rate of the US, 2001-2005, Figure 7.2: Pharmaceutical market in the USA, 2001-2005, Figure7.3: Pharmaceutical market segmentation in the US, 2005, Figure 7.4: Pharmaceutical market share by value in the US, 2005, Figure 7.5: GDP growth rate of Japan, 2001-2005, Figure 7.6: Pharmaceutical market in Japan, 2001-2005, Figure 7.7: Pharmaceutical market segmentation in Japan, 2005, Figure 7.8: Pharmaceutical market in Europe, 2001-2005, Figure 7.9: Major Pharmaceutical markets in Europe, 2005, Figure 7.10: GDP growth rate of the UK, 2001-2005, Figure 7.11: Pharmaceutical market in the UK, 2001-2005, Figure 7.12: Pharmaceutical market segmentation in the UK, Figure: 7.13: GDP growth rate of Mexico, 2001-2005, Figure 7.14: Pharmaceutical market in Mexico, 2001-2005, Figure 7.15: Pharmaceutical market segmentation in Mexico, 2005, Figure 7.16: GDP growth rate of Brazil, 2001-2005, Figure 7.17: Pharmaceutical market in Brazil, 2001-2005, Figure 7.18: Pharmaceutical market segmentation in Brazil, 2005, Figure 7.19: GDP growth rate of China, 2001-2005, Figure 7.20: Pharmaceutical market in China, 2001-2005, Figure 8.1: Pfizer Price Movement in 2005 (NYSE), Figure 8.2: Johnson & Johnson Price Movement in 2005 (NYSE), Figure 8.3: GlaxoSmithKline ADR Price Movement in 2005 (NYSE), Figure 8.4: Sanofi-Aventis ADR Price Movement in 2005 (NYSE), Figure 8.5: Novartis Price Movement in 2005(Swiss Exchange), Figure 8.6: Roche Price Movement in 2005 (Swiss Exchange), Figure 8.7: AstraZeneca ADR Price Movement in 2005 (NYSE), Figure 8.8: Merck Price Movement in 2005 (NYSE), Figure 8.9: BMS Price Movement in 2005 (NYSE), Figure 8.10: Wyeth Price Movement in 2005 (NYSE), Chart 9.1: EU Centralized Drug Approval Procedure, Chart 9.2: EU decentralized Drug Approval Procedure , Figure 10.1: Generics retail market estimates (USDbn) - 2005 & 2010, Figure 10.2: Pharmaceutical M&A 2005, Figure 10.2: Pharmaceutical M&A as a % of total healthcare M&A in terms of number of deals and deal value - (2000-2005), Figure 10.3: Number of Pharmaceutical M&A - (2001 - 2005), Figure 10.4: Deal value of Pharmaceutical M&A - (2001 - 2005), Figure 10.5: Net Sales of Sandoz Including and Excluding Acquisitions (2004 & 2005)

LIST OF TABLES

Table 3.1: Annual Sales of the Top Ten Therapy Classes, Table 3.2: Top 10 Best Selling Drugs, Table 5.1: Major drug withdrawals in 2004 and 2005, Table 8.1: Top ten firms in 2005, Table 8.2: Key Financials for Pfizer Inc., Table 8.3: Top ten products of Pfizer, 2005, Table 8.4: Drugs Approved/Launched, Table 8.5: Drugs Pending Regulatory Approvals, Table 8.6: Drugs in late stage development, Table 8.7: Key Financials for Johnson & Johnson, Table 8.8: Top ten products of J&J, 2005, Table 8.9: Drugs Approved/Launched, Table 8.10: Drugs Pending for regulatory approval, Table 8.11: Drugs in late stage development, Table 8.12: Key Financials for GlaxoSmithKline, Table 8.13: Top ten products of GSK, 2005, Table 8.14: Drugs Approved/Launched, Table 8.15: Drugs Pending Regulatory Approvals, Table 8.16: Drugs in late stage development, Table 8.17: Key Financials for Sanofi-Aventis, Table 8.18: Top ten products of Sanofi-Aventis, 2005, Table 8.19: Drugs Approved/Launched, Table 8.20: Drugs Pending Regulatory Approvals, Table 8.21: Drugs in late stage development, Table 8.22: Key Financials for Novartis, Table 8.23: Top ten products of Novartis, 2005, Table 8.24: Drugs Approved/Launched, Table 8.25: Drugs Pending for regulatory approval, Table 8.26: Drugs in late stage development, Table 8.27: Key Financials for Roche, Table 8.28: Top ten products of Roche, 2005, Table 8.29: Drugs Approved/Launched, Table 8.30: Drugs Pending for regulatory approval, Table 8.31: Drugs in late stage development, Table 8.32: Key Financials for AstraZeneca,, Table 8.33: Top ten products of AstraZeneca, 2005, Table 8.34: Drugs Approved/Launched, Table 8.35: Drugs Pending for regulatory approval, Table 8.36: Drugs in late development, Table 8.37: Key Financials for Merck & Co, Table 8.38: Top ten products of Merck, 2005, Table 8.39: Drugs Approved/Launched, Table 8.40: Drugs Pending for regulatory approval, Table 8.41: Drugs in late stage development, Table 8.42: Key Financials for Bristol Myers Squibb, Table 8.43: Top ten products of BMS, 2005, Table 8.44: Drugs Approved/Launched, Table 8.45: Drugs Pending for regulatory approval, Table 8.46: Drugs in late stage development, Table 8.47: Key Financials for Wyeth, Table 8.48: Top ten products of Wyeth, 2005, Table 8.49: Drugs Approved/Launched, Table 8.50: Drugs in late stage development, Table 10.1: Top 10 M&A 2005, Table 12.1: Major Pharmaceutical and Biopharmaceutical Drugs Losing Patents in 2006