Pharm Exec's Ninth Annual Industry Audit - Pharmaceutical Executive


Pharm Exec's Ninth Annual Industry Audit

Pharmaceutical Executive

Macro Benchmarks: Sales and Sales Growth

1: Annual Sales
Total sales and sales growth are two indicators that provide a window on overall market conditions facing the entire sector, from Big Pharma to the smallest biotech. There was little change over 2008 in the rankings of the 24 in terms of size (see Table One). The top three—Johnson & Johnson, Pfizer, and Novartis—remain, while AstraZeneca, Abbott, and Merck posted higher sales sufficient to move up the ranks, to fourth, fifth, and eighth, respectively. Sanofi-Aventis, Glaxo-SmithKline and BMS each dropped a notch, taking sixth, seventh, and tenth place.

Audit Data Sources and Key
Among stealth pharma, Gilead achieved the biggest gain, pushing sales up 31 percent over 2008, to occupy 14th place, followed by generic powerhouse Teva at 25 percent, putting it in the 12th spot.

Do I Hear Emerging Markets?

Overall, the group averaged sales growth of only 6.6 percent over 2008, better than last year but low from a historical point of view. The trend reflects the anemic economic prospects and harsher reimbursement climate in the mature markets of the US, Europe, and Japan. Still, the performance is generally in line with IMS data that pegged drug sales at 7 percent growth worldwide last year. With most of the forecast expansion in sales now slated to take place in emerging markets, those among the 24 that possess global reach should be in a position to benefit. IMS is also predicting an uptick in US market growth after 2013, as the patent cliff erodes and the expansion of insurance cover under health reform is phased in. Hence, we can safely conclude that the sales are for the taking, but the competition to attract skeptical customers with a fresh value proposition will be more intense.

With this as the background context, let's review the details driving results for the 24 surveyed companies.


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