The True State of the Pharmaceutical Industry

Summary

This new report analyses 141 pharmaceutical companies and draws some thought-provoking conclusions as to the state of the global industry. Stripping away the effects of M&A and currency fluctuations, the report reveals the true trends in revenue, profit and costs and answers key questions:

• Which companies are really driving growth?
• Which companies are effectively stagnating?
• What is the long-term impact on profits of M&A activity?
• Are the trends in R&D spending reflected in overall performance, and what might happen in the future?
• What has been the true impact of exchange rates on companies' performance?

in 150 Information-Packed Pages The Report Provides:

• A detailed commentary and graphical presentation of the major events and trends in key performance areas
• A company-by-company 5-year analysis of major financial reporting lines for 141 leading companies worldwide.

Companies Evaluated in The Report

Abbott Laboratories; Abraxis BioScience; Ajinomoto; Alcon; Alkermes; Allergan; Alpharma; Altana; Amgen; Amylin Pharmaceuticals; Angiotech Pharmaceuticals; Asahi Kasei; AstraZeneca; Axcan; Barr; Baxter; Bayer; Bentley Pharmaceuticals; Biogen Idec; BioMarin Pharmaceutical; Biotest; Boehringer Ingelheim; Bristol-Myers Squibb; BTG International; Cangene; Celgene; Cephalon; Chugai; Columbia Laboratories; Crucell; Cubist Pharmaceuticals; CV Therapeutics; Cytogen; Daiichi Sankyo; Dainippon Sumitomo Pharma; Dr Reddy's Laboratories; Draxis Health; Eisai; Eli Lilly; Encysive Pharmaceuticals; Endo Pharmaceuticals; Enzon Pharmaceuticals; Forest Laboratories; Fresenius; Gedeon Richter; Genentech; Genzyme; Gilead Sciences; GlaxoSmithKline; GPC Biotech; Hospira; Human Genome Sciences; Imclone Systems; ImmunoGen; Incyte; Indevus Pharmaceuticals; Innogenetics; Inspire Pharmaceuticals; InterMune; Ipsen; Isis Pharmaceuticals; Japan Tobacco; Johnson & Johnson; King Pharmaceuticals; Kissei Pharmaceutical; KV Pharmaceuticals; Kyorin Pharmaceutical; Kyowa Hakko Kirin; Ligand Pharmaceuticals; Lundbeck; Medarex; Medicis Pharmaceutical; Meiji Seika; Merck & Co.; Merck KGaA; Millennium Pharmaceuticals; Mitsubishi Tanabe Pharma; Mylan; Myriad; Nabi Biopharmaceuticals; Nektar Therapeutics; Neurocrine Biosciences; Nippon Shinyaku; Nipro; Novartis; Noven Pharmaceuticals; Novo Nordisk; NPS Pharmaceuticals; Nycomed; Ono Pharmaceutical; Orion; Oscient Pharmaceuticals; OSI Pharmaceuticals; Otsuka; Paladin Labs; Palatin Technologies; PDL BioPharma; Pfizer; Procter & Gamble; Protherics; QLT; Questcor Pharmaceuticals; Ranbaxy Laboratories; Recordati; Regeneron; Roche; Salix Pharmaceuticals; sanofi-aventis; Santen; Savient; Schering-Plough; SciClone; Sepracor; Shionogi; Shire; SkyePharma; Solvay; STADA Arzneimittel; Sumitomo Chemical; SuperGen; Taisho Pharmaceutical; Takeda Pharmaceutical; Teijin; Terumo; Teva; Toray Industries; Toyama Chemical; Trimeris; UCB; United Therapeutics; Valeant; Vertex; ViroPharma; Vivus; Warner Chilcott; Watson Pharmaceuticals; Wockhardt; Wyeth; XOMA; Yakult Honsha; Zeltia

Contents

• Foreword
• Introduction
  • Industry Trends
    • Patent Protection and Generics
    • Pricing constraints
    • Private Healthcare Provision
    • research effectiveness
• Methodology
  • Currencies
  • Table 1: Dollar Exchange Rates 1999 - 2007
  • Economic Background
  • Table 3: Industry Employment 1997 - 2007
  • Figure 2: Industry Employment 1997 - 2007
  • Table 4: Industry Productivity 1999 - 2007
  • Figure 3: Industry Productivity 1999 - 2007
  • Table 5: Assets per Employee 1999 - 2007
  • Figure 4: Assets per Employee 1999 - 2007
• Revenues
  • Table 6: Basic League for Pharmaceutical Sales - The Billion Dollar Companies (Annual Average Dollar Exchange Rates)
  • Table 7: The ""Billion Dollar"" Companies at 1999 Constant Exchange Rates
  • Table 8: Cumulative Share of Sales 2003 & 2007 (%)
  • Table 9: Individual Shares of Sales 2003 & 2007 (%)
  • Figure 5: Individual and Cumulative Shares 2003 & 2007
  • Table 10: Selected Pharmaceutical Sales Growth Rates 2003 & 2007 (%)
  • Figure 6: 2003 Pharmaceutical Sales Growth Rates
  • Figure 7: 2007 Pharmaceutical Sales Growth Rates
  • Figure 8: 2003 Constrained Growth Rates
  • Figure 9: 2007 Constrained Growth Rates
  • Table 11: Selected Annual Growth Rates
  • Figure 10: Average Annual Pharmaceutical Sales Growth Rates 2000 - 2007
  • Table 12: Pharmaceutical Industry Sales
  • Figure 11: Pharmaceutical Industry Sales
  • Table 13: Pharmaceutical Industry Sales excluding Pfizer
  • Figure 12: Pharmaceutical Industry Sales Excluding Pfizer
  • Figure 13: Comparative Growth Rates
  • Table 14: Pharmaceutical Industry Sales 2003 - 2007
  • Figure 14: Pharmaceutical Industry Sales 2003 - 2007
  • Table15: Pharmaceutical Industry Sales 2003 - 2007 Excluding Pfizer
  • Figure 15: Pharmaceutical Industry Sales 2003 - 2007 Excluding Pfizer
  • Figure 16: Growth Rate Comparison
• Operating Cost Structures
  • Table 16: Cost of Sales
  • Figure 17: Cost of Sales 1999 CER
  • Table 17: SG&A Expenses
  • Figure 18: SG&A Expenses 1999 CER
  • Table 18: Research and Development Expenditure
  • Figure 19: Research and Development Expenditure 1999 CER
  • Table 19: Full Costs
  • Figure 20: Full Costs 1999 CER
  • Table 20: Constituent Costs as a Percentage of Total Costs
  • Figure 21: Constituent Costs as a Percentage of Full Costs
  • Figure 22: R&D and SG&A Percentage Movements 1999 - 2007
  • Figure 23: Cost Structures; SG&A and R&D Expenditure Shares in 1999
  • Figure 24: Cost Structures; SG&A and R&D Expenditure Shares in 2007
  • Table 21: Cost Components as a Percentage of Full Industry Costs
  • Figure 25: Cost Components as a Percentage of Full Industry Costs
  • Table 22: Constituent Costs as a Percentage of Consolidated Revenues
  • Figure 26: Constituent Costs as a Percentage of Consolidated Revenues
• Profits
  • Table 23: Gross Profit; Revenue less Cost of Sales
  • Figure 27: Gross Profit
  • Table 24: Gross Industry Profit
  • Figure 27: Gross Industry Profit
  • Figure 28: Gross Industry Profitability
  • Table 25: Underlying Profit; Revenue less Cost of Sales, SG&A Expenses and R&D Expenditure
  • Figure 29: Underlying Profit
  • Table 26: Underlying Profit Excluding Pfizer
  • Figure 30 Underlying Profit Excluding Pfizer
  • Table 27: Underlying Industry Profit
  • Figure 31: Underlying Industry Profit
  • Figure 32: Underlying Industry Profitability
  • Table 28: Net Profit
  • Figure 33: Net Profit
  • Table 29: Net Profit Excluding Pfizer
  • Figure 34: Net Profit Excluding Pfizer
• Cash Flows
  • Table 29: Cash Generated from Operations
  • Figure 35: Cash Generated from Operations
  • Table 31: Industry Cash Generated as a Percentage of Revenues
  • Figure 36: Industry Cash Generated as a Percentage of Revenues
  • Table 32: Industry Cash Generated as a Percentage of Total Assets
  • Figure 37: Industry Cash Generated as a Percentage of Assets
  • Table 33: Cash Carried Forward
  • Figure 38: Cash Carried Forward
  • Table 33: Average Liquidity
  • Figure 39: Average Liquidity
  • Table 34: Industry Liquidity
  • Figure 40: Industry Liquidity
  • Table 35: Capital Expenditure
  • Figure 40: Capital Expenditure
  • Table 36: Industry Capital Expenditure as a Percentage of Tangible Assets - Investment Rates
  • Figure 41: Industry Investment Rates
  • Table 37: Industry Investment Rates against Industry Liquidity
  • Figure 42: Industry Investment against Industry Liquidity
• The Credit Crisis and The Expected Recession
  • The Current Economic Crisis Summarised
• Implications for The Pharmaceutical Industry
  • liquidity
  • leverage - debt to equity
  • cash Generation
• Outcomes - A Need for Absolute Liquidity or ""Who's Got The Most Cash?""