WORLDWIDE MARKET FOR BULK
PHARMACEUTICAL ACTIVES
TO CROSS $77 BILLION BY 2005
The U.S. pharmaceutical industry and the total health care delivery
system have seen numerous changes since BCC last looked at this market in
1997. Many of these changes are market driven. With the stronger presence
of health maintenance organizations (HMOs) in the U.S. health care
delivery marketplace, the end-market dynamics of pharmaceutical sales have
been impacted dramatically. Consolidation and major technological
breakthroughs also have modified the pharmaceutical industry. Although new
bulk actives used in pharmaceutical-formulated drugs have accounted for
major sales increases, the escalating cost of many drugs has caused strong
pressure to be exerted in an effort to control rising health care costs.
The future is very optimistic because of new therapeutic interventions
expected from the success of defining the genetic code and advances in
receptor and enzyme research.
According to a soon-to-be-released study from Business
Communications Co., Inc. (www.bccresearch.com)
RB-108R Bulk Pharmaceutical Actives, the worldwide
production of bulk pharmaceutical actives, i.e., substances in drugs that
perform the desired therapeutic actions, totaled an estimated $49.8
billion in 2000. By 2005 this market is expected to reach $77.4 billion as
it grows at an AAGR (average annual growth rate) of 9.2% during the 5-year
forecast period. The volume of bulk actives is not a corollary to the
dollar volume, since many of the new drugs require smaller volumes of the
active ingredient, the estimated volume production of bulk actives in 2005
was 393.6 million kg. By 2005, this volume is expected to grow at an AAGR
of 5% to reach 502 million kg.
Within this total market, the branded prescription drug segment is the
largest with an estimated market of $43.4 in 2000 and is expected to
comprise over 85% of the total market in 2005. Bulk producers of
pharmaceutical actives include captive, merchant and toll producers.
Although many formulated drug manufacturers lean toward the captive
manufacture of their actives, there is an emerging trend toward
outsourcing. Toll producers and captive producers of prescription drug
actives will see the most growth between 2000 and 2005. Toll producers
also will see major growth in OTC actives for this time period.
The worldwide market for formulated drug sales reached more than $362
billion in 2000 with an estimated 9.3% AAGR through 2005, yielding $565
billion in forecasted sales. The mergers and acquisitions trend that has
pervaded the formulated drug industry is also occurring within the fine
chemical companies, which manufacture and market active pharmaceutical
ingredients. Vertical integration within companies has also taken place as
the result of the mergers of formulated drug companies.
Among the top 25 suppliers worldwide for bulk pharmaceutical actives,
15 are European, seven are American and three are Japanese. In 2000, 10 of
the leading prescription pharmaceutical actives accounted for some 40% of
total world bulk production. Distribution channels for bulk pharmaceutical
actives are varied and include direct sales and sales through distributors
or wholesalers. As can be expected, participants in this industry must
comply with FDA, GMP and ISO regulations.
Worldwide
Market for Pharmaceutical Active Ingredients, through 2005
($ Millions)
|
|
2000
|
2005
|
AAGR %
2000-2005
|
|
Branded prescription drugs
|
43.4
|
66.6
|
9.0
|
|
OTC (Over-the-counter)
|
4.3
|
7.1
|
10.4
|
|
Generic prescription drugs
|
2.1
|
3.7
|
11.7
|
|
Total
|
49.8
|
77.4
|
9.2
|
Worldwide
Market for Pharmaceutical Active Ingredients, 2000-2005
RB-108R Bulk Pharmaceutical Actives
Data and analysis provided courtesy of
BUSINESS COMMUNICATIONS COMPANY, INC., 25 Van Zant Street, Norwalk, CT
06855, Telephone: (203) 853-4266; ext. 309, Email: publisher@bccresearch.com
