I researched and read the
article, OTC Pharmaceuticals in the
United States, One of the most interesting things I found about this
article is that it is behind revenue sales of comparative countries. United States
market generated total revenues of $28.3 billion in 2010. the European and
Asia-Pacific markets grew over the same period, to reach respective values of
$44.5 billion and $37.3 billion in 2010 (page 6). Even though the United States
grew steadily it was not as great as other countries. This was interesting
because the United States is so advanced, but was still beat out by other
markets around the world. One question I would further like to explore about
pharmaceuticals is if substitutions are a major threat to limiting or getting
rid of this industry. Is it possible for prescription drugs to wipe out the
need for pharmaceuticals and what is the pharmaceutical industry going to do to
address this issue? The pharmaceutical industry is growing steadily and is
predicted to stay that way. The United States OTC pharmaceuticals market grew
by 2.8% in 2010 to reach a value of $28,309.4 million (page 2). In 2015, the
United States OTC pharmaceuticals market is forecast to have a value of
$32,613.4 million, an increase of 15.2% since 2010 (page 2). It although does
have issues that can escalate in the future, one being the possibility of
prescription drug substitutes and the other is market rivalry. The US OTC
pharmaceutical market is highly fragmented, with the top three players holding
27.9% of the total market by value (page 2). One interesting fact in, OTC Pharmaceuticals in the United States, was
my company, Pfizer Inc., accounts for a further 5.9% of the market (page 11).
This is the second largest share below Johnson & Johnson at 18.2%. The
market is highly fragmented and that is why it is much further behind the
leading company, Johnson & Johnson. With the three top contenders holding
27.9% of the market the other companies divide the rest of the 72.1%.
OTC
Pharmaceuticals in the United States (2012).( pp.1-34). Retrieved from <http://360.datamonitor.com/Product?pid=83EF29C2-D796-42BB-AEE4-07906912804E>.
I also think it is very shocking that the United States is behind revenue sales of other countries and areas of the world. I always thought that America was much more advanced than other countries in Europe and parts of Asia. It is very surprising to know that the United States comes in third of all pharamceutical revenue sales in the world. I did not think that Europe and the Asian-Pacific markets were more advanced in the pharmaceutical industry than America is. These statistics also tell us a lot about the other regions of the world. Their revenue sales are going up because more and more people in Europe and the Asian-Pacific markets are buying more medicine than people in the United States. This means that people in other countries are getting more sick than we are and needing more medication, or they are more dependent on medicine than the United States is. Either of those situations can be a massive problem, and should be looked at more thoroughly to determine why there are so many people in need of medicine in those countries.
ReplyDeleteI was also surprised with the United States being behind Europe and Asia. I had thought that since the US makes up a majority of the market that they would bring in the most revenues. But its kind of nice knowing that citizens of the US don't really need drugs as much as the other countries, meaning that we relatively healthy.
ReplyDeleteThat is actually a little surprising to read that the United States came in 3rd in revenue, with Europe and Asia taking the leads, respectively. But in a way, it does make sense that Asia is ahead, as Asia has been making vast improvements in many economic industries in the past years, including the pharmaceutical industry. I don't think it is possible that prescription drugs can eliminate the need for pharmaceuticals, since there is always a need for new medicines and improvement of current medicines, which would then influence the demand of pharmaceuticals.
ReplyDeleteOne reason I think could be attributed to the stagnation of the over the counter pharmaceutical companies is the emergence of e-commerce, where people are purchasing their medication online. How this is being done and the channels of distribution would be worth looking at and the company that is in better shape to adapt to this trend is worth thinking about investing in. But generally the three top companies were the same as the report I read but in different orders, they are worth remembering. Should we look into companies that are international or just distributing to the United States because if pharmaceutical growth is growing overseas, shouldn't we consider to invest in a company that could go global?
ReplyDeleteEmma, good start and it was really interesting to read that the U.S. pharmaceutical industry is growing slower than the pharmaceutical industries in some international economies. For your future blogs, make sure to delve deeper in your analysis and examine why something could be that way – as such, what reason could you think why the U.S. market is growing slower than European and Asian markets? Another good tip is to connect the facts you’re reading to concepts covered in class!
ReplyDelete