Industry Analysis & Industry Trends
Major global pharmaceutical groups dominate the Pharmaceutical Product Manufacturing industry, although only a few manufacture active pharmaceutical ingredients in Australia. Increasingly, firms have been limiting their local activities to the later stages of the manufacturing process, such as dispensing, packaging and fill-finish. Many global manufacturers have also been restricting their Australian activities to distribution.
Domestic industry players have had to contend with the effects of the patent cliff, which has been part of a global trend. Losing exclusive manufacturing rights to some of their most profitable drugs has driven industry participants to adopt new business models to survive... purchase to read more
Industry Report - Starting a New Business Chapter
Substantial barriers to entry to the industry exist, not least of which is the fact that the industry is becoming increasingly globalised, with the dominant major players operating on a large global scale. The high and rising costs of R&D, combined with declining R&D productivity pose another substantial obstacle. A new medicine can cost as much as US$2.6 billion to develop with a 10 to 15 year time frame before it makes it to market. Furthermore according to Medicines Australia, it can then take 22 months to get a new medicine listed on the PBS. High capital expenditure is also required at the onset to establish a manufacturing plant geared to producing high-cost, high-technology drugs.
Government policies can be significant barriers to entry... purchase to read more