Healthcare & Pharmaceuticals

U.S. Pharmaceutical Market Relatively Fragmented

The global pharmaceutical market is traditionally dominated by the U.S. market, which despite its decreasing growth rates, has captured almost a 45% market share as of 2008. Moreover, it benefits from the fact that the majority of European companies export products to the U.S. and invest in research and new technology solutions in this market. The majority of new drugs have been introduced in the U.S. market first, before launching in Europe.

The U.S. pharmaceuticals market grew by 1.0% in 2008 to reach $273.9 billion, representing a compounded annual growth rate (CAGR) of 3.7% for the period from 2004 to 2008.

According to Datamonitor, U.S. pharmaceuticals command a 44.5% share of the global pharmaceutical market. In comparison, the European pharmaceuticals market holds 28.9% of the market’s revenue. The central nervous system segment was the market's most lucrative in 2008, generating total revenue of $64.3 billion, equivalent to 23.5% of the market's overall value.

Major players within the pharmaceutical market are typically large, multinational companies, with a high level of capital investment. The U.S. market is relatively fragmented with four major companies sharing about 30% of the U.S. market value. Pfizer Inc. is a leading company in the U.S. pharmaceuticals market with 8.7% market share. GlaxoSmithkline Plc holds another 7.4% share of this market.