Drug sales in emerging mkts to soar: study

Emerging markets such as India and China are set to overtake major developed drug markets of the world, with significant increase in pharmaceutical sales through 2013, says a study.

According to a report by research firm IMS Health, drug sales in China is likely to outpace that of France and Germany, while Brazil, Russia and India will be among the top 13 pharma market by 2013.

"These traditionally peripheral economies are gearing up to turn the tables on the established pharmaceutical world order," IMS Health said. 

The United States would continue to rule the world pharmaceutical market followed by Japan, with China at the third position, the report said.

It further said that Brazil will be on the eight position, Russia at 11th and India at the 13th place.

IMS Health coined the term "pharmerging market" in 2006 in recognition of the major shift in growth away from the mature, developed economies to the seven fast-growing emerging economies of China, Brazil, Russia, India, Mexico, Turkey, and South Korea.

In the three years since then, the regional gap in pharmaceutical growth contribution has widened further as the performance in the major developed markets continued to slow.

IMS Health ranked the "pharmerging markets" on the basis of their market value growth, with China at the forefront.

The second tier comprised Brazil, Russia, India, while the third tier consisted of a group of 13 far flung nations ranging from Argentina to Egypt, Pakistan to Poland and the Ukraine to Vietnam.

"Superpowered by China, shored by Brazil, Russia and India, and spurred by the impetus of the new Tier-3 fast followers, these markets have delivered an outstanding 37 per cent of global growth in 2009, and are forecasted to reach as much as 48 per cent by 2013," the report said.

China is expected to drive $40 billion in growth through 2013, while Brazil, Russia and India are each expected to add $5-15 billion to the pharmaceutical market through 2013.

Meanwhile, the tier-III nations are expected to make a cumulative contribution in each market of $1-5 billion through 2013, IMS Health said.

The huge swing of power to the 17 pharmerging markets is set to intensify as they continue to gain share at the expense of the US and top five European markets.