Over the past decade, the health care industry has changed drastically. Various medical groups (such as Aurora Health Care) have bought up hospitals, and patients do not have the personal connections to their doctors as they did in times past. Pharmaceutical sales have risen drastically as well, as the industry restructured its target market.
What pharmaceutical sales are worth
Market research companies estimated the worldwide pharmaceutical industry to be worth $593.1 billion in 2002. Worldwide pharmaceutical sales are expected to hit $901 billion in 2008. Pharmaceutical sales are estimated to make up 24 percent of the revenue generated in the healthcare industry. Pharmaceutical sales have been increasing steadily at about 8 percent per year. The world’s per capita spending on pharmaceuticals has risen from $72 in 2000 to $82.10 in 2002.
Trends to watch
Pharmaceutical sales are expected to be affected by the changing world demographics, as the world’s population ages and turns to medicine to provide relief from their day to day ailments. From back aches to fatal diseases, people turn to medicine to cure their diseases or at least reduce or prevent their pains. The results from research and development have been less successful lately, however, and have been affected by studies (such as the Claritin controversy in 2003) that have shown some drugs do not help the user. Pharmaceutical sales are also foreseen to be influenced by the increasing popularity of online pharmacies.
What each market is worth in pharmaceutical sales
The United States and Canada compromise the North American Market, which grew the fastest and remained the world’s largest market with about a 50 percent share of pharmaceutical sales, well ahead of Europe and Japan. However, in contrast with the US, the pharmaceutical industry in Europe is faced with pricing issues and reimbursement regulations. According to 1999 IMS data, 57 percent of sales of new medicines marketed since 1995 are generated in the US market, compared with 25 percent in the European market. Some key markets like Japan and Latin America are declining because of the recent economic crises affecting their countries. Asia in particular is emerging as a leading pharmaceutical market. The impending World Trade Organization implementation in 2005 is aligning the world pharmaceutical sales market into one global market.
Top drugs in pharmaceutical sales for 2003
The most-prescribed drug in 2003 was Hydrocodone, with 85.1 million prescriptions in pharmaceutical sales. The number two drug was Lipitor (known generically as Atorvastatin), with 65.1 million prescriptions. Synthroid, generically called Levothyroxine, had 47.2 million prescriptions. Atenolol had 40.9 million prescriptions and Zithromax had 39.5 million prescriptions in pharmaceutical sales.
How marketing and pharmaceutical sales have changed
In the past, pharmaceutical companies viewed 'the customer' – from a marketing standpoint – solely as the physician. Currently, increased advertising initiatives, managed care influence, and national attention to increasing health care costs are causing the consumer to be more educated and interested in his or her own health care. This is causing an expansion in the industry's customer base. The clientele of pharmaceutical sales now includes physicians, patients, insurance companies, the government, buying groups, and others.
By Virginia Zignego