Slow progress: Ongoing reforms and strong import competition limit industry growth

IBISWorld’s Pharmaceutical Product Manufacturing market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.


Industry Analysis & Industry Trends

The Australian Pharmaceutical Product Manufacturing industry has contended with several challenges over the past five years. Echoing trends on the global pharmaceutical stage, these challenges have included a changing regulatory and risk environment, a patent cliff that has seen manufacturers lose exclusive manufacturing rights to some of the most profitable drugs in the industry's history, and reform-driven pricing pressures. On the local front, ongoing reforms to the Pharmaceutical Benefits Scheme (PBS) have been particularly significant, as mandatory price disclosures have continued to reduce prices. Increased regulatory burden and heightened competitive pressures have added to the challenges that local industry players are currently facing...

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Industry Report - Industry Investment Chapter

The Pharmaceutical Product Manufacturing industry's capital intensity is medium, reflecting the capital required for manufacturing facilities to make high-cost, high-technology pharmaceutical products. However, capital investment has slowed over the past five years, with fewer players updating manufacturing capacity or equipment. Trends favouring moving away from manufacturing activities to more basic packaging activities have also been reflected in lower capital investment in the industry.

At the same time, wages as a proportion of revenue have fallen over the past five years in the face of falling employment numbers. In 2016-17, for every dollar that the industry spends on capital, $6.45 is spent on wages. Cap..

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Industry Products

What is the Pharmaceutical Product Manufacturing Industry?

The industry comprises companies that manufacture medicinal and pharmaceutical products for human use from both synthetic (chemical) and natural sources. Other products include chemical or diagnostic testing agents, blood serums and biotech products. Industry activities include manufacturing active pharmaceutical ingredients and synthesising chemical ingredients, late-stage packaging and fill-finish activities.

Industry Products
Benefit-paid pharmaceuticals
All other medications
Vitamins and dietary supplements
OTC medicines
Other complementary medicines
Industry Activities
Antibacterial, antibiotic and antitoxin
Vitamin product
Herbal drug
Ampoule, medicinal capsule, medicinal ointment and vial
Biotechnological pharmaceutical and medicinal products
Serum and blood serum
Diagnostic substance

Table of Contents

About this Industry

Industry Definition
Main Activities
Similar Industries
Additional Resources

Industry at a Glance

Industry Performance

Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle

Products & Markets

Supply Chain
Products & Services
Demand Determinants
Major Markets
International Trade
Business Locations

Competitive Landscape

Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
industry Globalisation

Major Companies

Operating Conditions

Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance

Key Statistics

Industry Data
Annual Change
Key Ratios

Jargon & Glossary

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