Industry Analysis & Industry Trends
The Pharmaceutical Product Manufacturing industry is dominated by major global pharmaceutical groups, although only a small number are engaged in the manufacture of active pharmaceutical ingredients in Australia. An increasing number of firms are limiting their local activities to the later stages of the manufacturing process, including dispensing, packaging and the fill-and-finish stage. A large number of global manufacturers also restrict their Australian activities to distribution.
As with operators in the global pharmaceutical industry, domestic players are currently contending with the effects of the patent cliff. Since 2011, some of the world's highest selling drugs have lost patent protection... purchase to read more
Industry Report - Industry Investment Chapter
Historically, the Pharmaceutical Product Manufacturing industry has displayed a medium level of capital intensity, reflecting the level of capital required for manufacturing facilities to make high-cost, high-technology pharmaceutical products. However, this has changed with capital intensity currently at a low level. Capital investment has slowed, with fewer players updating manufacturing capacity or equipment. Moreover, trends favouring the move away from manufacturing activities to more basic packaging activities are being reflected in lower capital investment levels in the industry.
In contrast, wages are rising as a proportion of revenue despite reductions in employment numbers. This is occurring as revenue declines at a faster rate than wages... purchase to read more