A BRIC focus
Among the emerging markets, the BRIC (Brazil, Russia, India, and China) countries represent the largest areas of pharmaceutical
industry growth. China's pharmaceutical market was valued at $66.7 billion in 2011 and is expected to reach between $155 billion
and $165 billion by 2016, representing a CAGR of 15% to 18% between 2012-2016, according to IMS. Brazil's pharmaceutical market
was valued at $29.9 billion in 2011 and is expected to reach between $42 billion and $52 billion by 2016, representing a CAGR
of 12% to 15% from 2012-2016. Russia's pharmaceutical market was valued at $15.7 billion in 2011 and is forecast to be between
$23 billion and$33 billion by 2016, representing a CAGR of 10% to 13% from 2012-2016. And India's pharmaceutical market was
valued at $14.3 billion in 2011 and is expected to reach between $24 billion and $34 billion by 2016, representing a CAGR
of 14% to 17%, according to IMS.
Based on these projections, China will move into second place in the global pharmaceutical market by 2016, surpassed only
by the United States, which will continue to hold the number one position on a global basis, according to IMS. Brazil will
move into fourth place, India into eighth place, and Russia into ninth. Among developed markets, Japan will drop from the
second largest global market to the third by 2016. Germany and France will each drop a notch, from fourth and fifth, respectively,
in the global rankings in 2011, to fifth and sixth in 2016 as projected by IMS. Italy will stay in seventh spot in 2016, the
same position it occupied in 2011. The developed markets of Spain, Canada, and the United Kingdom, respectively ranked as
eighth, ninth, and tenth in 2011, will be eclipsed by Russia and India in the global rankings by 2016, according to IMS projections.
China. The pharmaceutical majors are pursuing direct investment in R&D and manufacturing as well as partnership strategies in emerging
markets (1-2). Some recent investment in China by the pharmaceutical majors includes Hisun-Pfizer Pharmaceuticals, a joint
venture formed between Pfizer and the Chinese pharmaceutical company Zhejiang Hisun Pharmaceuticals with the aim to develop,
manufacture, and commercialize off-patent pharmaceutical products in China and other markets. In May 2012, Sanofi inaugurated
a new assembling and packaging line for producing its prefilled insulin injection pen Lantus SoloStar at its facility in Beijing.
The company announced a second phase $90-million project to install a cartridge aseptic product line at the facility.
Novartis has been actively building its position in China. In 2007, Novartis opened a start-up facility for a new R&D center
in Shanghai, China, and broke ground in 2008 on Phase I of a new facility that was originally to be home to approximately
400 R&D scientists and approximately 400 other pharmaceuticals division personnel. In 2009, it expanded the scope of the site
with plans to invest $1 billion during the next five years to increase the size of its operations in Shanghai. Based on a
re-evaluation of the site conducted in 2010, the current Phase 1 has been extended by two buildings. The cross-divisional
Shanghai campus will house 800 offices and 400 laboratory workplaces
In 2012, Eli Lilly opened a new diabetes R&D center in Shanghai. The center employs 150 scientists and staff hired primarily
from China. Eli Lilly also is constructing a new insulin production, packaging, and warehouse facility in Suzhou, China, which
was schedule to open in late 2012. In June 2012, Eli Lilly announced an expansion of its manufacturing capabilities in China
through an expanded collaboration with Novast Laboratories, a generic-drug and specialty pharmaceutical company based in Nantong,
China. The collaboration will enhance Lilly's efforts to build a portfolio of Lilly branded generic medicines in China, and
eventually may be used to provide regional manufacturing support for Lilly's pipeline of products in development.
For Roche, a key project included transforming its manufacturing facility for solid dosage forms in Shanghai from a local
to a global supply operation. In early 2011, the facility received FDA and EMA approvals to produce Xeloda (capecitabine)
for the US and EU markets.