A Reality Check on Emerging Markets

Emerging markets, particularly the "BRIC" countries (Brazil, Russia, India, and China), are playing an increasingly important role in pharmaceutical industry growth. Although these markets still account for only a relatively small portion of the global pharmaceutical market, recent and projected growth is strong.

The BRIC countries, along with Indonesia, Mexico, and Turkey, are expected to account for as much as one-fifth of global pharmaceutical sales by 2020, according to a recent PricewaterhouseCoopers (PwC) report (1). In 2004, these markets accounted for only 8% of the global pharmaceutical market. The established markets of the G7 countries (Canada, France, Germany, Italy, Japan, the United Kingdom, and United States) accounted for 79% of the global sales market in 2004, according to PwC.

IMS Health defines what it terms the "pharmerging markets" as the BRIC countries, Mexico, South Korea, and Turkey. By 2011, these pharmerging markets are expected to contribute about 27% to overall global pharmaceutical growth and hold 16% of the market, compared with a projected 38% market share held by the US, according to IMS