Source: The Wall Street Journal (Online)
Global pharmaceutical sales are expected to increase 4% to 6% next year to more than $825 billion, though overall market growth likely will remain at historically low levels, according to research firm IMS Health (RX).
Executive Murray Aitken said, “While our outlook for the global market is more positive” than earlier this year, the industry still faces funding pressures, a potential gap between new drugs and expiring patents, potential health-care law changes and a weakened global economy.
Stronger-than-expected growth in the U.S. market contributed to the company raising its 5-year global-growth forecast by one percentage point to of 4% to 7%. It predicts the pharmaceutical market to expand to more than $975 billion by 2013. Pricing flexibility and inventory management contributed to the stronger-than-expected U.S. growth, said IMS, but it expects a significant gap between product introductions and patent losses over the next five year, limiting prospects.
Near-term U.S. pharmaceutical sales growth prospects have strengthened in recent months, aided by price increases and tight inventories. The U.S. market is expected to grow 4.5% to 5.5% this year and 3% to 5% in 2010.
IMS noted increases have slowed in countries where there is high out-of-pocket spending on drugs and steep economic downturns, particularly Russia, Mexico and South Korea. But strong growth is likely to hold up in some emerging markets, notably China, where pharmaceutical sales are seen rising more than 20% a year.
Author: Tess Stynes
Date: 13/10/2009
Location: http://online.wsj.com/article/BT-CO-20091008-706578.html