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Overview North American Market
Market size: $135.6
Market growth: 17%
Market forecast 1998-2002: 10% CAGR
North America's market grew
by 17% in 1999, with sales standing at $135.6 billion, with
the US accounting for 96 % of sales. Although the Canadian
market is significantly smaller, it has different market dynamics
and must be considered as a separate entity.
US Market Key Facts
Market size: $130
Market growth: 17%
The US market grew by 17% in 1999 to achieve sales of US$130
billion.
With US public sector spending on healthcare outpacing the
growth in private expenditure, the Clinton Administration
is focused on expanding and overhauling Medicare and encouraging
recipients to move into managed care systems.
Cost-containment through tightly controlled prescribing practices
has increased due to the use of formularies by most HMOs,
all Pharmacy Benefit Managers (PBMs) and hospitals. As more
Medicare and Medicaid beneficiaries join managed care programs,
more of the population will be subject to prescribing controls.
Although there are no government price controls, there were
signs that price increases were becoming a driver of market
growth. Generic prices, however, have been decreasing. Despite
few major new products, a cluster of new generic introductions
will boost the over the next two years.
Canadian Market Key Facts
Market size: $5.5 billion
Market growth: 11%
The Canadian market achieved sales of $5.5 billion in 1999,
an 11% growth in constant US$ terms on 1996 levels. In Canada
there is still considerable central government control over
healthcare, however a process of regionalisation has led to
each province being responsible for the funding or managing
of drugs. Pharmaceutical costs have been growing at a faster
rate than total healthcare costs and it is viewed as a primary
target for cost-containment. Expenditure on drugs represents
around 14-15% of total healthcare expenditure. In general,
measures have been taken by the provinces that shift the financial
burden away from the state and on to the consumer, such as
charges per pharmaceutical item and patient co-payments for
pensioners.
Detailed
reports of sales for the Top 20 Corporations,
Products,
Countries
and Therapy
Areas in 1998 and 1999 are available to buy online.
*Source: World
Review 2000.
Please note Data
collection, values and definitions.
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