Merck 2010 Annual Report Download - page 20

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The pharmaceutical market research firm IMS Health reported global pharma sales in 2010
of around USD 840 billion, corresponding to growth of around 4.5%. Sales in the United
States, the world’s largest pharmaceutical market, totaled USD 310 billion. The more mature
markets of the industrialized countries no longer showed particularly strong growth, also as
an outcome of health care reforms, for example in France, Spain and Greece. Markets with
high growth rates include the BRIC countries, namely Brazil, Russia, India and China, as well
as Turkey and Indonesia. In 2010, emerging economics already accounted for 42% of the global
growth of the pharmaceutical markets. According to IMS Health, it is becoming increasingly
difficult to introduce new medicines to the market and to earn the corresponding returns
on investment. IMS Health reports that in several countries, including Spain, Italy and China,
regional or even local authorities are becoming increasingly influential alongside national
authorities. This lengthens the time to market launch, if a product even makes it that far.
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According to the European Chemical Industry Council (Cefic), the European chemical industry
grew by 10% in 2010 compared to 2009, which was a weak year due to the economic crisis.
Germany was the growth engine of the European chemical industry, yet the industry has still
not returned to the pre-crisis level of 2007. Global sales totaled EUR 1,871 billion in 2009. The
27 member states of the European Union were responsible for EUR 449 billion, or just 24%
of the total. Accounting for 25.5% of European sales, Germany holds the leading position
in this region. Globally, Asia is in first place with sales of EUR 834 billion, led by China with
EUR 416 billion. Specialty chemicals, which include products from Merck, account for 26%
of European chemical sales. According to Cefic data, consumer chemicals, which also include
Merck products, account for 14% of European chemical sales. (The figures for 2010 will only be
available after the publication of this report).
Growth weakened toward year-end since economic incentives ended in some countries.
Demand outside of Europe was the main growth driver according to Cefic.
The German Chemical Industry Association (VCI) calculated growth of nearly 18% to EUR 170 billion
for Germany. The approximately 1,600 member companies invested EUR 6.4 billion in plant and
buildings, and spent nearly EUR 9.4 billion on research and development.
The American Chemical Council (ACC) put the volume of the largest market, the United States,
at well over USD 670 billion in 2010. Exports were an important component, generating a trade
surplus of USD 3.7 billion, compared to a deficit of USD 100 million in 2009. According to the
ACC, industrial output in the emerging countries rose by 12% in 2010.
One-third of our global
pharmaceutical sales are
generated in
the United States
Merck Annual Report 2010 16