Industry Analysis & Industry Trends
The Pharmaceutical Product Manufacturing industry is dominated by major global pharmaceutical groups, although only a small number are engaged in local manufacture of active pharmaceutical ingredients. An increasing number of firms are limiting their Australian involvement to the later stages of the manufacturing process, such as dispensing, packaging and the fill-and-finish stage. A large number of players also restrict their Australian activities to purely distribution.
As with the global pharmaceutical industry, the local industry is currently contending with the fallout associated with the patent cliff. Between 2011 and 2015, some of the world's highest selling drugs have already lost or are due to lose patent protection... purchase to read more
Industry Report - Industry Investment Chapter
The Pharmaceutical Product Manufacturing industry has a medium level of capital intensity, reflecting the level of capital tied up in manufacturing facilities capable of producing, high-cost, high-technology drugs. In 2014-15, for every dollar that the overall industry spends on capital, $7.80 is spent on wages. Capital labour intensity ratios vary between product segments, with the patented prescription product segment having a considerably higher ratio than the generic and OTC product segments.
Falling levels of capital investment growth have recently characterised the industry, with fewer players investing in updating manufacturing capacity or equipment... purchase to read more