Key Dynamics Shaping Market:
- Patent expiries drive exceptional growth in generics
- Return of price increases for innovative products offset by price
reductions in generics
- Market share of new products low in 2007
MONTREAL, Dec. 17 /CNW Telbec/ - The Canadian pharmaceutical market is
expected to grow 6.0 - 6.5 per cent in 2007 to $19 billion in drug store and
hospital sales, according to IMS Health figures released today. This year's
market growth is slower than the 8.4 per cent average rate achieved from 2002
to 2006. The global pharmaceutical market is expected to expand by 6 - 7 per
cent in 2007, a growth rate similar to Canada's.
In 2007, growth in the generics and innovative sectors is 20.1 per cent
and 3.3 per cent, respectively. Excluding biotechnology products, the growth
of innovative therapies is only 1.6 per cent this year. This represents an
unprecedented disparity in growth between the two sectors, primarily the
result of the large number of patent expiries experienced during the year.
"Pharmaceutical products representing $1.2 billion of sales in Canada
faced patent expiries in 2007," says Ian Therriault, senior vice president,
IMS Health Canada. "This figure is four times larger than the patent expiries
expected during the next two years."
In addition to the strong growth experienced in the generics sector,
sales of biotechnology products are up 17.2 per cent in 2007. Biotechnology
therapies represent 10 per cent of total pharmaceutical sales in Canada, but
are responsible for approximately 24 per cent of the market's overall growth
this year. This growth is being fueled by biological response modifiers and
diabetes therapies, offsetting slower sales of oncology products and
erythropoiesis-stimulating agents, which have been the subject of safety
warnings issued by Health Canada and the US Food and Drug Administration.
Public payer cost-containment initiatives, led by Quebec and Ontario,
continue to have a significant impact on drug plan spending. Legislation
introduced in the two provinces allows the prices of innovative-sector
products to rise to levels just below the Consumer Price Index once agreements
are reached with the provinces. At the same time, generics sector products
experienced price roll-backs of approximately 21 per cent in 2007.
Also contributing to more moderate pharmaceutical market growth overall
is the low number of new products this year. New medicines (new molecular
entities and line extensions) launched in Canada in 2007 account for less than
0.3 per cent of total drug store and hospital sales this year as their sales
continue to be affected by market-access delays.
"With the value of patent expiries significantly lower in the next two
years," says Therriault, "it's expected that the disparity in growth between
the innovative and generic sectors will not be as significant as in 2007."
Sales represent the wholesale cost of prescription products purchased by
Canadian hospitals and drug stores. All dollar figures are in Canadian funds
and do not include purchases made by Canadian internet pharmacies for sale to
Operating in more than 100 countries, IMS Health (NYSE: RX) is the
world's leading provider of market intelligence to the pharmaceutical and
healthcare industries. With US$2.0 billion in 2006 revenue and more than 50
years of industry experience, IMS offers leading-edge market intelligence
products and services that are integral to clients' day-to-day operations,
including portfolio optimization capabilities; launch and brand management
solutions; sales force effectiveness innovations; managed care and consumer
health offerings; and consulting and services solutions that improve the
delivery of quality healthcare worldwide. Additional information is available
For further information:
For further information: Sue Cavallucci, IMS Communications, (514)