Pharma industry 'strategic crisis'


The pharma industry is grappling with a ‘strategic crisis’ according to three quarters of companies surveyed in a report from consultancy firm Roland Berger. The problem is shrinking margins, caused by price and cost pressure, regulatory change and expiring patents.

The top 10 pharma companies increased sales by 13% from 2009 to 2010, but their profits dropped during the same period by 4%. Compounding the problem in the long term, R&D costs have risen 80% over the past 10 years, while the number of new product launches has dropped by 43%.

Emerging markets offer the biggest growth – their market share is set to rise to 40% by 2016. The market for pharmaceutical products will grow on average by 4.5% annually until 2016. But growth in emerging markets will increase by almost 12%. China, Brazil, India and Russia (the so-called BRIC economies) in particular are experiencing high growth.

Half of the companies said they would be willing to move their administration, R&D and sales departments to emerging market regions.


Related Content

Weathering the storm

6 January 2014 Business

news image

Pharmaceutical industry roundup 2013

The hunt for innovation

31 January 2014 Premium contentFeature

news image

Big pharma companies are embracing a more open and collaborative approach. Nuala Moran discovers who’s working with whom

Most Commented

Lithium–sulfur batteries ready to go the distance

3 December 2013 Research

news image

Innovative electrodes set to put electric cars in the fast lane with a new design that holds double the energy of ordinary li...

Graphene made in a kitchen blender

22 April 2014 Research

news image

High quality flakes of two-dimensional material exfoliated from graphite points way to bulk production