European and American pharmaceutical companies are facing greater market pressure

Sales in the global pharmaceutical industry reached $800 billion, but 2016/17 has not been a good year for big U.S. and European pharmaceutical companies, with experts predicting that sales of the top 10 pharmaceutical companies will grow by only 2 percent and that the top 10 to 20 pharmaceutical companies are expected to grow by 4.5 percent. European and American companies generally face greater market price pressure, coupled with the slow pace of approval of new drugs, may lead to a significant reduction in product research and development investment revenue. Deloitte consultancy Deloitte believes the industry's leading companies' return on research and development has fallen from 10 per cent in 2010 to 3.7 per cent today, and HSBC experts expect the industry's mergers and acquisitions to accelerate. Last year, the U.S. Drug Administration approved only 22 new drugs, half as many as in the previous two years, and the German government approved 30 new drugs, down 25 percent from 2015. Business newspaper commented that only by continuously improving research and development investment and drug quality can European and American pharmaceutical companies ensure sustainable development, and have to face the dual challenge of improving the efficiency of drug innovation and taking on greater market risks. (Ministry of Commerce)