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The world pharmaceutical industry is in rapid growth: R&D expenditures will reach $204 billion in 2024

According to the report prepared by the Ministry of Commerce, global R&D expenditures in the pharmaceutical and pharmaceutical products sector, which reached $186 billion by the end of 2019, are expected to reach $204 billion in 2024.

It is estimated that the pharmaceutical industry, which has a rapid growth trend worldwide, will reach a market size of more than $1.5 trillion in 2023.

The Ministry of Commerce prepared a sector report on pharmaceuticals and pharmaceuticals. In the report, it was pointed out that the pharmaceutical industry is among the sectors that provide the highest added value.

CHANGES IN THE WORLD GROW THE PHARMACEUTICAL INDUSTRY

In the report, which stated that the world pharmaceutical industry has entered a rapid growth process in recent years, “Demographic change, increase in life expectancy, changes in disease patterns, social globalization, increase in access to health services and the emergence of the welfare state phenomenon played an important role in the growth of the world pharmaceutical industry.”

According to the IMS (International Medical Statistics) data, it was pointed out in the report that the industry reached a total market volume of $1.2 trillion with a 5% growth in 2018, and that 95% of the world pharmaceutical market is owned by companies operating in the international arena.

In the report, which was informed that approximately 40% ($485 billion) of world drug sales in 2018 was in the USA, it was emphasized that this country was followed by China with 11% ($132 billion) and Japan with 7% ($86 billion).

Underlining that the three countries in question account for almost half of the world market share, the report said, “The growth trend in the pharmaceutical industry, which is the world’s third largest industry, is expected to continue in the coming period, and the industry is expected to reach a market size of more than $1.5 trillion in 2023.”

R&D EXPENDITURES IN THE SECTOR

In the report, which stated that 15% of the total R&D expenditures in the world in 2019 were made by the pharmaceutical industry, it was stated that pharmaceutical R&D expenditures require long processes and high costs.

In the report, it was stated that the conversion of a molecule into a human drug can take an average of 10-15 years and high investment amounts are needed.

In the report, which is informed that the global R&D expenditures of the pharmaceutical industry amounted to approximately $186 billion as of the end of 2019, the following was noted:

“Global R&D expenditures in the sector are expected to reach $204 billion in 2024. While the leading company in R&D expenditures globally is Roche, it is estimated that Celgene and Novo are among the companies that increase their R&D expenditures the fastest. The USA is the most important actor in the sector in terms of its share in R&D expenditures, drug consumption per capita, research drug industry and being the center of many of the world’s leading companies in terms of turnover. In the pharmaceutical sector, the leadership of the USA is expected to continue, with a growth of 1-4% predicted for the North American continent in the past. On the other hand, while the European Union (EU) is the second largest production center in the pharmaceutical industry after the USA, Japan follows the EU.”

The report also stated that the production of biosimilar drugs, which started in Europe, is now concentrated in developing countries (China, India, South Korea), and resources are allocated for biotechnological products in countries such as Brazil and Mexico.

Source: Sabah / Translated by Irem Yildiz

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