Executive Summary
Canada represents one of the largest markets for pharmaceuticals in the world, with a huge potential for generics. Generics in 2007 accounted for more then 46% prescriptions and 19% sales out of the total pharmaceutical market. The market is currently being driven by several factors, such as patent expiry of several blockbuster drugs, lower costs, cost containment measures by the government, and rapidly ageing population, according to "Generic Drug Market in Canada" - a market research report that provides an exhaustive analysis on the generic market in Canada.
The report thoroughly evaluates the factors that distinguish Canada from all other generic markets both in positive and negative ways. A major factor that differentiates the Canadian generic market from the US and most European markets is the comparatively high price of generics and lower price erosion. This allows manufacturers to fetch better margins from their drugs, and is a major reason which is attracting foreign players to enter this market.
Currently, drugs against chronic diseases occupy most of the pharmaceutical market, with cardiovascular drugs holding the top spot. However, strong growth is expected in other chronic segments also, particularly in cancer and diabetes.
Although the market has huge potential, growth can be significantly hampered by recent government regulations and various other challenges. However, the low cost of generics, coupled with billion dollar drug patent expiries, is expected to enable the generic market to continue its double-digit growth in the next five years.
Key Findings
- The penetration of generics is rapidly increasing in the Canadian pharmaceutical market, with generics expected to account for nearly 26% of the entire pharmaceutical sales by 2012.
- Apotex has been the leader of the Canadian generic market, controlling around 34% of the market in 2006.
- Nearly 5 Million people in Canada will be above 65 years by 2011, increasing the demand for drugs, specifically those for chronic diseases.
- Generics substitution is preferred by pharmacists as they give better returns than branded drugs.
- The top four generic companies presently control more then 70% of the generic market, but the market is expected to undergo more fragmentation in future.
- Projected growth of generics at a CAGR of 14% during 2007-2012 will surpass that of pharmaceutical market at a CAGR 7.6% during the same period.
Key Issues & Facts Analyzed
- Evaluation of past, current and future market trends.
- Discussion about the size and growth of the market.
- Study of various distribution channels prevailing in the market.
- Analysis of healthcare indicators.
- Future prospects of the generic market.
- Profile discussion of key players in this market.
- Analysis of various challenges and opportunities for the market.
Key Players Analyzed
This section provides the overview, key facts, and financial information of prominent players in the Canadian generic market, including Teva Pharmaceutical Industries Limited, Apotex Inc, Ratiopharm GmBH, Pharmascience Inc., etc.
Research Methodology
Information Sources: The information has been compiled from authentic and reliable sources like books, newspapers, trade journals, and white papers, industry portals, government agencies, trade associations, monitoring industry news and developments, and through access to more than 3000 paid databases.
Analysis Method: Methods like historical trend, linear regression analysis using software tools, judgmental forecasting, and cause and effect analysis have been used in the report for rational analysis.
Table of Contents
Section 1 Analyst View
Section 2 Canadian Pharmaceutical Market
2.1 Market Size & Growth
2.1.1 Prescriptions
2.1.2 Sales
2.2 Key Therapy Areas
2.3 Branded & Generic Drugs
2.4 Sources of Drug Payment
2.5 Key Players
2.5.1 Prescriptions
2.5.2 Sales
2.6 Top Selling Drugs
2.6.1 Prescriptions
2.6.2 Sales
Section 3 Canadian Generic Market
3.1 Market Size & Growth
3.1.1 Prescriptions
3.1.2 Sales
3.2 Key Players
3.2.1 Prescriptions
3.2.2 Sales
3.3 Market Segmentation
3.3.1 Distribution Channels
3.3.1.1 Retail Pharmacies
3.3.1.1.1 Sales
3.3.1.1.2 Key Players
3.3.1.2 Hospital Pharmacies
3.3.1.2.1 Sales
3.3.1.2.2 Key Players
3.3.2 Authorized & Independent Generics
3.3.3 Province/Territory
3.3.3.1 Drug Consumption
3.3.3.2 Prescriptions
3.3.3.3 Sales
3.4 Generic Approval Process
3.4.1 Abbreviated New Drug Submission
3.4.2 Notice of Allegation
Section 4 Industry Analysis
4.1 Market Drivers
4.1.1 Huge Cost Savings
4.1.2 Favorable Political Environment
4.1.3 Patent Expirations
4.1.4 Ageing Population
4.1.5 High Returns for Pharmacists
4.2 Opportunity Areas
4.2.1 Cardiovascular Drugs
4.2.2 Cancer Drugs
4.2.3 Psychotherapeutics
4.2.4 Antidiabetics
4.2.5 Drug Packaging & Delivery Market
4.3 Restraining Factors
4.3.1 Extension of Data Exclusivity
4.3.2 Export Restrictions
4.3.3 Evergreening of Drug Patents
4.3.4 Authorized Generics
4.4 Future Outlook, 2008-2012
4.4.1 Driving & Restraining Forces
4.4.2 Future Scenario, 2008-2012
Section 5 Supporting Databases
5.1 Macroeconomic Indicators
5.2 Population Profile
5.3 Age Profile
5.4 Healthcare Spending & Infrastructure
Section 6 Key Player Profiles
6.1 Apotex Inc
6.2 Mylan Laboratories Inc
6.3 Teva Pharmaceutical Industries Limited
6.4 Ratiopharm GmbH
6.5 Sandoz Inc
6.6 Pharmascience Inc.
Figures
Figure 2-1: Canada - Prescriptions Dispensed* in Pharmaceutical Market (in '000), 2001-2007E
Figure 2-2: Canada - Pharmaceutical Sales* (in Billion CA$), 2001-2007E
Figure 2-3: Canada - Pharmaceutical Purchases* by Retail & Hospital Pharmacies (in Billion CA$), 2001-2007E
Figure 2-4: Canada - Deaths by Various Causes (%), 2005-2007E
Figure 2-5: Canada - Share of Generic & Branded Drug by Prescription* (%), 2007E
Figure 2-6: Canada - Share of Generic & Branded Drug by Sales (%), 2007E
Figure 2-7: Canada - Drug Financing by Source (%), 2006
Figure 3-1: Canada - Prescriptions Dispensed* in Branded Drug Market (in '000), 2001-2007E
Figure 3-2: Canada - Prescriptions Dispensed* in Generic Drug Market (in '000), 2001-2007E
Figure 3-3: Canada - Share of Generic & Branded Drug by Prescription (%), 2001-2007E
Figure 3-4: Canada - Generic Drug Sales (in Billion CA$), 2001-2007E
Figure 3-5: Canada - Branded Drug Sales (in Billion CA$), 2001-2007E
Figure 3-6: Canada - Share of Generic & Branded Drug by Sales (%), 2001-2007E
Figure 3-7: Canada - Relation between Brand Sales & Number of Generic Entrants
Figure 3-8: Canada - Branded Drug Sales through Retail Pharmacies (in Billion CA$), 2004-2007E
Figure 3-9: Canada - Generic Drug Sales through Retail Pharmacies (in Billion CA$), 2004-2007E
Figure 3-10: Canada - Share of Generic & Branded Drug Sales through Retail Pharmacies (%), 2004-2007E
Figure 3-11: Canada - Branded Drug Sales through Hospital Pharmacies (in Billion CA$), 2004-2007E
Figure 3-12: Canada - Generic Drug Sales through Hospital Pharmacies (in Billion CA$), 2004-2007E
Figure 3-13: Canada - Share of Generic & Branded Drug Sales through Hospital Pharmacies (%), 2004-2007E
Figure 3-14: Canada - Share of Independent Generic & Authorized Generic Prescriptions (%), 2001-2007E
Figure 4-1: Canada - Average Cost of Branded & Generic Drug (in CA$), 2001-2006
Figure 4-2: Canada - Population above 65 Years of Age (in Million), 2001-2007E
Figure 4-3: Canada - Relative Per Capita Spending on Drug by Age Group
Figure 4-4: Canada - Cardiovascular Drug Market* (in Billion CA$), 2005-2007E & 2012F
Figure 4-5: Canada - Antineoplastics Market* (in Million CA$), 2005**, 2006** & 2012F**
Figure 4-6: Canada - Psychotherapeutics Market* (in Billion CA$), 2005-2007E & 2012F
Figure 4-7: Canada - Number of Diabetes Patients in Age Group 20-79 Years (in '000), 2003, 2007E & 2025F
Figure 4-8: Canada - Diabetes Market* (in Million CA$), 2005-2007E & 2012F
Figure 4-9: Canada - Forecast for Population above 65 Years of Age (in Million), 2008-2011
Figure 4-10: Canada - Forecast for Deaths by Various Causes (%), 2008-2012 & 2030
Figure 4-11: Canada - Forecast for Pharmaceutical Sales (in Billion CA$), 2008-2012
Figure 4-12: Canada - Forecast for Generic Drug Sales (in Billion CA$), 2008-2012
Figure 4-13: Canada - Forecast for Branded Drug Sales (in Billion CA$), 2008-2012
Figure 4-14: Canada - Forecast for Share of Branded & Generic Drugs by Prescription (%), 2008-2012
Figure 4-15: Canada - Forecast for Branded & Generic Drugs by Sales (%), 2008-2012
Figure 4-16: Canada - Forecast for Contribution of Branded & Generic Drug Sales in Growth of Pharmaceutical Market (%), 2007-2012
Figure 5-1: Canada - Nominal GDP (in Million US$), 2001-2007E
Figure 5-2: Canada - Consumer Price Index (%), 2001-2007E
Figure 5-3: Canada - Forecast for Consumer Price Index (%), 2008-2011
Figure 5-4: Canada - Currency Exchange Rates (From CA$ to US$), 2001-2007
Figure 5-5: Canada - Population (in Million), 2001-2007E
Figure 5-6: Canada - Forecast for Population (in Million), 2008-2011
Figure 5-7: Canada - Life Expectancy (in Years), 2001-2007E
Figure 5-8: Canada - Forecast for Life Expectancy (in Years), 2008-2011
Figure 5-9: Canada - Population Breakup by Age Group (%), 2002-2007E
Figure 5-10: Canada - Forecast for Population Breakup by Age Group (%), 2008-2011
Figure 5-11: Canada - Per Head Healthcare Spending (in US$), 2001-2007E
Figure 5-12: Canada - Forecast for Per Head Healthcare Spending (in US$), 2008-2011
Figure 5-13: Canada - Number of Doctors (per '000 Population), 2002-2007E
Figure 5-14: Canada - Forecast for Number of Doctors (per '000 Population), 2008-2011
Figure 5-15: Canada - Number of Hospital Beds (per '000 Population), 2001-2007E
Figure 5-16: Canada - Forecast for Number of Hospital Beds (per '000 Population), 2008-2011
Tables
Table 2-1: Canada - Top 10 Therapy Areas by Prescription* (in '000), 2006
Table 2-2: Canada - Top 10 Therapy Areas by Sales* (in '000 CA$), 2006
Table 2-3: Canada - Top Pharmaceutical Companies by Retail Prescription (in Million), 2006
Table 2-4: Canada - Ranking of Top Pharmaceutical Companies by Retail Prescription, 2001-2006
Table 2-5: Canada - Top Pharmaceutical Companies by Sales* (in Million CA$), 2006
Table 2-6: Canada - Ranking of Top Pharmaceutical Companies by Sales* (2001-2006)
Table 2-7: Canada - Top Drugs in Pharmaceutical Market by Prescription* (in Million), 2006
Table 2-8: Canada - Top Drugs in Pharmaceutical Market by Sales* (in Million CA$), 2006
Table 3-1: Canada - Top Generic Drug Companies by Retail Prescription (in Million), 2006
Table 3-2: Canada - Ranking of Top Generic Drug Companies by Retail Prescription, 2002-2006
Table 3-3: Canada - Top Generic Drug Companies by Sales* (in Million CA$), 2006
Table 3-4: Canada - Ranking of Top Generic Drug Companies by Sales*, 2002-2006
Table 3-5: Canada - Pharmaceutical Sales by Distribution Channel (%), 2002-2006
Table 3-6: Canada - Generic Drug Market by Retail & Hospital Sales (%), 2007E
Table 3-7: Canada - Number of Retail Pharmacies by Category, 2001-2006
Table 3-8: Canada - Top Therapy Areas by Retail Sales (in Million CA$), 2006
Table 3-9: Canada - Ranking of Top Generic Players by Retail Sales, 2006
Table 3-10: Canada - Top Therapy Areas by Hospital Sales (in Million CA$), 2006
Table 3-11: Canada - Ranking of Top Generic Players by Hospital Sales, 2006
Table 3-12: Canada - Per Capita Drug Spending of Public & Private Sector by Region (in CA$), 2006E
Table 3-13: Canada - Generic Drug Prescriptions by Region (%), 2001-2006
Table 3-14: Canada - Generic Drug Sales by Region (%), 2004 & 2006
Table 4-1: Canada - Returns for Pharmacists on Generic & Branded Drug (in CA$)
Table 6-1: Mylan Laboratories Inc. - Key Financials (in Million US$), 2005-2007
Table 6-2: Teva Pharmaceutical Industries Limited - Key Financials (in Million US$), 2004-2006
Table 6-3: Sandoz Inc. - Key Financials (in Million US$), 2005 & 2006
