in splintered market, industry seeks solutions

By Jim FreDerick

NEW YORK — For pharmaceutical manufacturers, wholesalers or retailers, the distinct chill over the past couple of years isn’t just some abstract news from the nation’s financial press; it’s the downdraft created by falling U.S. demand for brand-name prescription medicines.

Stymied by weak demand in a recessionary economy, intensifying generic competition, a relative dearth of research-and-development breakthroughs and an ongoing loss of patent protection for some of their biggest-selling pioneering medicines, branded pharmaceutical manufacturers have scrambled over the last three years to restore their once-enviable track record for product innovation and sales growth. And 2009 was no exception.

Reporting on industry trends for the 12-month period ended June 2009, IMS Health tracked a dismal performance record for the branded drug industry. While total retail prescription drug sales rose 4.2% to roughly $300 billion, the real action was almost all in the generic and specialty/biotech segment of the market. Sales of brand-name pharmaceuticals were up 2.7% for the period, thanks

Source: IMS Health, MIDAS, National Sales Perspectives, Rx-only, June 2009

Sales growth of prescription drugs
Market share of retail and institutional channels

Continued on page 6

0.3%

4.7%

0.9%

0.4%

Top 10 drug classes

ma T JUNe 2009

10.7%

LEADING CLASSES
US$*

MARKET
SHARE
%
GROWTH

35.0%

U.s. iNDUs Try

$291,804

100.0%

3.2%

11.5%

1. Lipid regulators

16,811

5. 8

- 3. 2

2. Antipsychotics, other

14,222

4.9

3. 3

7.1%

3. Proton-pump inhibitors

13,891

4.8

-0.9

4. Antidepressants

11,420

3. 9

- 1. 9

16.7%

12.6%

5. Angiotensin II antagonists

7,946

2. 7

12. 9

6. Seizure disorders

7,773

2. 7

- 18. 1
7. Antineoplastic monoclonal
antibodies

7,670

2. 6

9. 3

Chain
Independents
Mail service
Food stores
Clinics
Hospitals
Long-term care
Home health care

8. Erythropoietins

6,450

2. 2

- 12. 9

5,938

2.0

13. 6

HMO Other

9. Antiarthritis, biologic
response modifiers

10. Analogs of human insulin

5,699

2.0

28. 8

TOP 10

$97,819

33.5%

0.4%

Source: IMS Health, National Sales Perspectives, June 2009

*In millions
Source: IMS Health, National Sales Perspectives, June 2009

References:

http://CEdrugstorenews.com

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