Amit Rangnekar
NMIMS-PhD-2004
Industry Brief
US Europe Japan
Origin Pharmacies, dyes Pharmacies, dyes Pharmacies
Wyeth, BMS, Lilly, Roche, Hoechst, Ciba, Takeda
Merck, Pfizer, Sandoz
Traditional Pharma, healthcare Chemicals,agro,dyes, Pharma
focus on Pfizer, Merck, drugs, OTC- Hoechst, Takeda,
Wyeth, J&J Bayer, Ciba, Sandoz Sankyo
Drivers Resistors
• Demographics • Drug discovery
• Biologicals • Patent expiries
• Emerging markets • Generic onslaught
• Innovation • Attrition rates of new molecules
Concerns
• Drug safety
? Opportunities
• Therapy niches
• Drug prices • Lifestyle diseases
• Industry credibility • Unmet needs
• Outsourcing
Big Pharma Marketshare (1995-2004)
Strivers
Big Pharma v/s World Pharma Growth %
Big pharma growth (%) World pharma growth (%)
Region WMS No 1 No 2 No 3
%
North America 47 Pfizer GSK J&J
•Bayer decreased focus, lost MS, confirming lack of focus results in MS decline
•EU Big Pharma increased pharma focus thrice as much as the US companies
Strategies of Survivors
Origin Organic M&A Co- Strategic Alliances
growth promotion stake
Pfizer US ++ +++ + ++
Merck US +++ + +
BMS US + + +++
GSK Eur ++ +++ +
Roche Eur ++ ++ ++
Novartis Eur +++ + ++ +
BMS US + + +++ + +