The global pharmaceutical market is projected to grow between 4% and 6% in 2010 on the reformation in the US healthcare system and much improved performance of emerging markets.
IMS Health has recently reviewed its previous forecast and stated that the global pharmaceutical market would grow between 4% and 6% to reach a value of $825 Billion in 2010, as reported by PHARMEXEC
In the next five years period ending 2013, the global pharmaceutical market is expected to grow in the range of 4%-7%, an improvement of 1% from previous prediction of 3%-5% announced in April 2009, said IMS Health.
While the revised forecast brings in good news for the industry, the firm categorically remarked that the projected growth rate was substantially lower than past growth trends.
The US pharmaceutical market is expected to refurbish in short term on account of rise in pharmacy stocks this year (2009). The US government initiative of overhauling the healthcare system will infuse life in dying sales of prescription drugs since a large number of uninsured people will go for preventive treatments. Sales of preventive medicines like drugs for controlling cholesterol and diabetes will tick upward. The prospects of generic drugs sales also seem bright in view of insurers extra emphasis on introducing incentives for encouraging people to use generic medicines.
A leading market research firm RNCOS
also published a report titled "Global Pharmaceutical Market Forecast to 2012
” in October 2008 and said that Europe’s top five pharmaceutical markets would register sluggish growth in the next five year period (till 2012). However, emerging markets in Eastern and Central Europe would give cushion to the overall European pharmaceutical market.
The situation in Asia Pacific region will be paradoxical of Europe owing to large untapped population and strong economic growth in some major countries of the region, said the RNCOS report.
Price increase of protected drugs has maintained a good rate. Earlier, IMS predicted that drug prices would slump with the worsening of economic downturn, but pharmaceutical firms showed tough resistance to the slowdown and kept their drugs prices intact. Traditionally, drug manufacturing companies raised the prices of their branded medication by 5%-6% annually.
The efforts of Chinese government to reform the healthcare system for bringing preventive care within the reach of common people will drive the pharmaceutical market in the country and make medical care affordable for everyone.
According to a Research Analyst at RNCOS
, “Emerging pharmaceutical markets will continue to sail on high growth trajectory in the next five years but the impact of economic slowdown on them could not be ruled out. Countries like Russia, Mexico and Turkey are striving hard to recover their growth momentum.”
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