Moving into emerging markets

Posted on 10 July 2009

For the first time in a half-century, sales of prescription drugs are forecast to decline during 2009 in the US, historically the industry's biggest and most profitable market. Pending legislation from the new Obama administration could lead to reductions in medicine prices in the US, further adding to the worries of manufacturers.

As a result, developing countries have begun to look more attractive to the industry. Sales of prescription drugs in emerging markets reached $152.7 billion in 2008, up from $67.2 billion in 2003, according to IMS Health, which tracks the industry. IMS forecasts sales will climb to $265 billion by 2013.

In an article in the Wall Street Journal, Avery Johnson explores how companies are moving into Venezuela as part of a strategic shift in the $770 billion pharmaceutical industry to target the working poor in the developing world.