(1)
(2)
% CONTRIBUTION TO GROWTH
4.2 8.6 5.9 6.6 2.6 14.2 12.4
0 5 10 15 20
34%
7% 63% 37% 38% 42%
Generics
% GROWTH CONSTANT US $
(1) Market segmentation, Rx only (excludes OTC). (2) Numbers are not mutually exclusive and will not add to 100%. Source: IMS Health. MIDAS. MAT December 2010
MAT December 2010 Rank Worldwide 1 Pfizer 2 Novartis 3 Merck & Co. 4 sanofi-aventis 5 AstraZeneca 6 GlaxoSmithKline 7 Roche 8 Johnson & Johnson 9 Abbott 10 Lilly Top 10 US $ Billion 791.4 55.5 46.8 38.4 35.8 35.5 33.6 32.7 26.8 23.8 22.1 351.0 % Market Share 100.0 7.0 5.9 4.9 4.5 4.5 4.3 4.1 3.4 3.0 2.8 44.4 Constant US $ % Growth 4.2 -3.5 10.7 -1.3 -1.4 2.5 -4.3 -0.4 -0.4 3.5 8.1 0.9 CAGR 05-09 6.1 -1.4 6.6 3.0 2.6 8.1 0.3 12.1 -0.4 7.1 9.3 3.7
Source: IMS Health, MIDAS, Dec 2010
Top 10 markets sales and growth
Audited markets in 2010
2010 Country 10 Key Markets United States Japan Germany France China Italy Spain Canada United Kingdom Brazil
Source: IMS Health. MIDAS. Worldwide. MAT December 2010
Big Pharma faces major challenges…
% Market Share MAT December 2010 100.0 9.2 7.3 6.3 6.1 5.2 4.7 4.5 4.4 3.5 3.3 54.5 45.5
Global Rank Top 10
Oncologics Antipsychotics
4.2%
3.7%
28.9
28.4 26.6 20.0 17.5 15.2 12.7
6.3%
6.2% 5.8% 4.4% 3.8% 3.3% 2.8%
7.8%
-5.6% 7.6% 2.5% 11.9% 3.8% 6.8%
The global pharmaceutical market performance declined in 2010
Global Pharma Historical Market Dynamics & Current Environment
Global Sales and Market Growth Pharma market challenges
Roche Abbott Pfizer & Amgen AstraZeneca Merck & J&J
$8.9 billion $8.5 billion $8.0 billion $7.7 billion $7.6 billion
6. Rituxan (cancer)
7. Lantus (diabetes) 8. Advair (asthma/COPD) 9. Herceptin (cancer)
% Growth, Constant US $ 3.9 3.3 0.4 3.0 0.9 21.9 2.2 2.6 2.6 3.8 20.1
CAGR 2006-2010 5.0 4.6 2.4 3.6 2.7 23.9 3.7 6.6 6.4 4.2 13.5
China is becoming the 3 largest market, Brazil the Global metrics all point to China as a land of huge 6th opportunity Change headline
Autoimmune agents
Antidiabetics HIV antivirals Anti-epileptics Narcotic analgesics Erythropoietins
11.3
11.1
2.5%
2.4%
7.3%
2.5%
Hospital solutions
MS therapies
Bolded corporations exceeded the overall industry’s +1.4% growth in MAT December 2010. Source: IMS Brogan. Canadian Drug Stores and Hospital Purchases. MAT December 2010.
Canadian market's top 10 corporations (purchases), MAT Dec 2010
Rank $ Billions MAT December 2010 CANADA 1 2 3 4 5 6 7 8 9 10 Pfizer/Wyeth AstraZeneca Merck/Schering-Plough Apotex Johnson & Johnson Teva Novartis GlaxoSmithKline Abbott Bristol-Myers Squibb Total Top 10 Total All Others $22.34 2.06 1.63 1.41 1.35 1.16 1.06 0.99 0.98 0.79 0.74 $12.17 $10.17 % Growth MAT December CAGR 2010 2005-2009 +1.4 -30.1 +12.6 +5.7 -12.6 +0.9 +14.7 +11.5 +5.9 -7.6 +10.4 -4.0 +8.7 +6.9 +2.8 +6.6 +5.2 +13.1 -2.0 +19.7 +9.2 +0.7 +14.0 +5.6 +6.0 +9.8
• The US/top 5 Europe/Japan no longer the main growth drivers • The economic crisis impact has been different across pharmaceutical markets • New product launches are not replacing revenues lost to generic competition, especially in primary care • The most attractive areas for growth are in emerging, generics and specialty markets
2011 Strategic management presentation
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rd
Most Global market segments record healthy growth, except primary care
Global contribution to growth, 2010
Global Market Biologics Oncologics Specialist-driven Primary Care-driven Pharmerging Markets
Source: IMS Health, MIDAS, Dec 2010
Sales, US $ Billions 614.9 310.7 85.8 40.0 38.9 32.8 25.2 22.0 21.6 20.3 17.5
% Market Share 100 50.5 13.9 6.5 6.3 5.3 4.1 3.6 3.5 3.3 2.9
10. NovoRapid (diabetes) Novo Nordisk
Source: Reuters
Top 10 corporations lag market growth – significantly
Global pharma2010
Global Rank
Top 10
Lipid regulators Respiratory agents Anti-ulcerants Angiotensin II antag. Antidepressants Antidiabetics, oral Platelet aggr. inhib. Vitamins & minerals Cephalosporins & combs.