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    Home > Active Ingredient News > Drugs Articles > The growth rate of multinational pharmaceutical companies in emerging markets returns to single digits. What's the next step?

    The growth rate of multinational pharmaceutical companies in emerging markets returns to single digits. What's the next step?

    • Last Update: 2015-06-26
    • Source: Internet
    • Author: User
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    Source: Xinkangjie 2015-6-26 although the growth of emerging markets is likely to slow down for the global pharmaceutical industry, the growth of emerging markets still exceeds that of other markets If the latest figures are symbolic, AstraZeneca has overtaken its competitors and led the emerging markets The conclusions come from a report just released by Bernstein, an investment company, in which it analyzes the sales growth of seven global pharmaceutical companies, including AstraZeneca, in the past few years, especially in emerging markets in the first quarter of 2015 In the past four years, AstraZeneca's sales revenue in emerging markets has increased by 14%, 4 percentage points more than that of Pfizer and Sanofi, and AstraZeneca has defeated all competitors in terms of quarter on quarter growth Most of the growth of AstraZeneca's emerging markets comes from the Chinese market, which now accounts for half of its emerging markets So what are the slower growing companies in emerging markets? It could be MSD, which has grown 6% in the past four quarters, or Lilly, which has grown 4% in the first quarter of this year Not to mention GlaxoSmithKline, which was heavily affected by the bribery scandal in China, its emerging markets had stopped breaking through by the end of 2014 In addition, Bristol Myers Squibb does not clearly define its emerging market sales Overall, the seven major pharmaceutical companies grew by an average of 8.8% in emerging markets in the first quarter of this year and 9.4% in the past four years It's true that this is much lower than the double-digit growth of emerging markets many years ago, but it's achieved in the context of the growing price pressures facing the pharmaceutical industry and the overall recession of the global economy Emerging markets are a windfall compared with other markets In the U.S market, the sales of the seven large pharmaceutical companies in the first four quarters fell by 1.3%, and the growth rate in the first quarter of 2015 was only 2% Other international markets suffered even worse, with sales down 2% in the first four quarters and a 3.9% increase in the first quarter of 2015 So which pharmaceutical company is the most dependent on emerging markets? For Sanofi, emerging markets account for 32% of its sales revenue, followed by AstraZeneca (27%) and Novartis (26%) It's worth noting that AstraZeneca's heavy dependence on the U.S market has improved, thanks to the generic drugs of Nexium (esomeprazole) Pfizer's and Roche's emerging market revenues account for 24% of their revenues, while Lilly's dependence on emerging markets is the lowest, at just 16% Despite the slowdown in growth in emerging markets, investment in this market is still worthwhile In an investment briefing, Tim Anderson, an analyst at bainstein, cautioned that this is a strategy in terms of the long-term growth of proprietary brand drugs "While emerging markets are only half as profitable as developed markets, for multinational pharmaceutical companies, that's more than they cost." "The collective presence of these multinational pharmaceutical companies in emerging markets is long-term and gradual, and will inevitably shift from old, patent expired drugs to more profitable, innovative and patented ones," Anderson said
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