The blue pill: A depleting product portfolio and import competition are expected to limit growth

Companies in the Pharmaceutical Preparations Manufacturing industry manufacture medications, chemical contraceptive products, medical diagnostic preparations, radioactive in-vivo diagnostic substances and biotech pharmaceuticals. The United Kingdom is one of the largest pharmaceutical markets in the world, so the industry commands an important position in both the global pharmaceutical market and the UK economy. Revenue fell at the beginning of the period due to the expiry of patents for nine of the current top-20 bestselling brands on the NHS between 2012 and 2015. However, the industry is partly protected by the essential nature of its products, and revenue recovered and grew strongly over the second half of the period, including an increase of 10.1% in 2017-18...read more.

Industry Statistics & Market Size
Revenue
£17bn
Annual Growth 14-19
3.0%
Forecast Growth 19-24
Profit
Employment
49,277
Businesses
496

Industry Threats & Opportunities

  • The essential nature of its products protected the industry from sustained revenue decline
  • Competition, rising costs and regulation have all contributed to shrinking profit margins
  • Health fears and government initiatives are likely to support domestic demand, boosting revenue
  • Industry Report - Industry Investment Chapter

    The industry has a moderate level of capital intensity. In 2018-19, for every £1.00 spent on capital, industry participants are expected to spend £5.36 on labour. Over the past two decades, there has been a steady rise in the level of capital resources required to develop and manufacture increasingly complex and expensive high-technology drugs. Meanwhile, the level of industry employment has declined. These developments have caused the level of capital intensity to rise.However, capital intensity varies between segments. For instance, the ethical and prescription product segment is considerably more capital intensive than the generic product segment. Res...purchase to read more.

    Additional Insights for the Pharmaceutical Preparations Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Pharmaceutical Preparations Manufacturing Industry are

  • Having technology sharing arrangements with other major players
  • Ability to alter goods and services produced in favour of market conditions
  • Superior financial management and debt management
  • IBISWorld analysts also discuss how external factors such as Population aged 65 years and over and Total health expenditure in the Pharmaceutical Preparations Manufacturing industry impact industry performance..

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    What's in this report

    What is the Pharmaceutical Preparations Manufacturing Industry?

    This industry includes companies that manufacture medications, chemical contraceptive products, medical diagnostic preparations, radioactive in-vivo diagnostic substances and biotech pharmaceuticals. It also includes operators that manufacture medical impregnated wadding, gauze, bandages and dressings, as well as firms that prepare botanical products for pharmaceutical use.

    Industry Products
  • Adhesives and bandages
  • Antisera and other blood fractions
  • Animal health products
  • Vaccines and antibiotics
  • Biotechnology drugs
  • Therapeutic or prophylactic medication
  • Other medicaments
  • Chemical contraceptive preparations
  • Industry Activities
  • Manufacturing antisera and other blood fractions, vaccines and diverse medications
  • Manufacturing chemical contraceptive products for external use and hormonal contraceptive medication
  • Manufacturing medical diagnostic preparations, including pregnancy tests
  • Manufacturing radioactive in-vivo diagnostic substances
  • Biotech pharmaceutical
  • Manufacturing medical impregnated wadding, gauze, bandages and dressings
  • Preparing botanical products for pharmaceutical use
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Population aged 65 years and over
  • Total health expenditure
  • Real effective exchange rate
  • MSCI World Index
  • Health consciousness

  • Current Performance
  • International trade
  • Increasing regulation
  • Unhealthy margins
  • Movement to new markets
  • Chart: Revenue Growth

  • Industry Outlook
  • European effect
  • Challenges and chances
  • Technological opportunities
  • Patent expirations
  • Margins constrained
  • Table: Pharmaceutical Preparations Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Pharmaceutical Preparations Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Pharmaceutical Wholesaling
  • Dispensing Chemists
  • Hospitals

  • Key Selling Industries
  • Basic Pharmaceutical Product Manufacturing
  • Research and Experimental Development on Biotechnology

  • Products & Services
  • Therapeutic or prophylactic medication
  • Vaccines and antibiotics
  • Biotechnology drugs
  • Other medicaments
  • Animal health products
  • Adhesives and bandages
  • Chemical contraceptive preparations
  • Antisera and other blood fractions
  • Chart: Pharmaceutical Preparations Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Wholesalers
  • Pharmacies
  • Hospitals
  • Other
  • Chart: Major Market Segmentation for the Pharmaceutical Preparations Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciationOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Pharmaceutical Preparations Manufacturing

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Pharmaceutical Preparations Manufacturing Industry

  • Industry Globalization
    AstraZeneca UK Ltd, Glaxo Operations UK Ltd, Novartis UK Ltd,
  • Table: AstraZeneca UK Ltd - financial performance
  • Table: Glaxo Operations UK Ltd - financial performance
  • Table: Novartis UK Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Pharmaceutical Preparations Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Pharmaceutical Preparations Manufacturing Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Blockbuster Drugs
  • Products that generate annual sales in excess of US$1 billion.
  • Generic Drugs
  • Drugs that are produced and distributed without patent protection.
  • Pharmaceutical Price Regulation Scheme (Pprs)
  • The PPRS is a mechanism used by the Department of Health to control the prices of branded prescription medicines supplied to the NHS.
  • Precision Medicine
  • An emerging approach for disease treatment and prevention that takes into account individual variability in genes, environment and lifestyle for each person.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Pharmaceutical Preparations Manufacturing market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Pharmaceutical Preparations Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Pharmaceutical Preparations Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Pharmaceutical Preparations Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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