Pharmaceuticals growth hurt by patent expiries, rationalisation

The expiration of patents, industry
restructuring and other factors will put a squeeze on the pharmaceutical industry,
according to a new report.

 

IBISWorld has updated its Pharmaceutical
Product Manufacturing
in Australia report, citing various influences that will crimp revenue
growth, tipped at “a meagre 0.8 per cent over 2013-2014”.

 

The industry is defined as “companies thatmanufacture various medicinal and pharmaceutical products for human use fromboth synthetic (chemicals) and natural sources.”

 

The research firm notes that the
industry surveyed employs 15,275 at 147 businesses nationally, and revenues
will reach $9.9 billion for the year (up from $9.0 billion in 2008-2009). Annualised
revenue increases are put at 1.7 per cent.

 

It is also, despite being a net
importer, one of Australia’s leading high-tech exports.

 

Dragging on growth, explains the
report, are a number of key medicines coming off-patent in 2011-2015, as well
as increased safety concerns and global rationalisation.

 

The report follows tough predictions made by IBISWorld in January last year, estimating industry revenue would decline by 2.1 per cent for 2012-13.

 

Image: www.pharmaceutical-int.com