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Global pharmaceutical market growth accelerates to 11% in 1999

IMS HEALTH data shows that the world pharmaceutical market grew by 10.7% in 1999, with estimated sales reaching $337.2 billion, up from $304.7 billion in 1998.

This robust growth is expected to continue, despite continued government pressure on pricing and a number of blockbuster drugs going off-patent. IMS HEALTH projections show average annual global sales growth of 8.1% over the next five years, which would expand the global pharmaceutical market to $506 billion by 2004.

The growth can be attributed to a number of factors, including the recent launches of drugs such as Celebrex and Vioxx, which are contributing to the industry momentum. Simultaneous multi-country launches, improved sales force productivity and direct-to-consumer promotion will continue to yield strong and faster sales in the lifecycle of new drugs.

The data are a snapshot of IMS HEALTH's annual World Review report of global pharmaceutical market performance in 1999, using audited sales of prescription drugs and certain over-the-counter products in more than 60 countries. Growth in sales is measured in US dollars. World Review is consolidated using IMS HEALTH's on-line global database, MIDAS.

Leading countries

The top ten worldwide markets represent approximately 79% of all unaudited and audited sales.

Leading countries in 1999 global pharmaceutical sales
Rank
Country
1999 Sales US$Bn
% Global Sales
% Growth Year-on-Year*
1United States130.139%17%
2Japan53.516%23%
3Germany18.55%1%
4France17.85%0%
5Italy11.33%3%
6United Kingdom11.03%8%
7Spain6.62%6%
8Brazil6.32%(-26%)
9China6.22%12%
10Canada5.52%11%

Source: IMS HEALTH World Review 2000 (*Growth measured in US Dollars)

The US remains the largest pharmaceutical market by far, growing 17% to $130.1 billion in sales in 1999, and representing 39% of the total worldwide market. Japan, the second largest market, recovered last year from three consecutive years of negative performance, growing 23% with sales of $53.5 billion.

Within the top five European markets, Germany remains in the lead, achieving sales of $18.5 billion with 1% growth over 1998. The fastest growing Western European markets in 1999 were the UK, growing 8%, and Spain, with 6% growth over 1998.

Brazil, the seventh largest audited world pharmaceutical market in 1998, dropped to eighth place last year, experiencing a 26% decline in growth due to economic conditions. China, ranked ninth for the third consecutive year, achieved $6.2 billion in 1999 sales and 12% year-over-year growth.