Brian TiffeeTaimur KhanNatasha BrandtStephen Rogan

Brandon PomerenkeJimmy WilliamsJohn QuisenberryMatthew Olszewski

Major Segments Originator Chemical

Drugs

Generics

OTC Drugs

Active Pharma

Ingredients

Excipients

Biologicals

Biosimiliars

The U.S. pharmaceutical industry is defined by the census as companies engaged in researching, developing, manufacturing, and marketing drugs and biologicals for human or veterinary use.

Generic vs Branded

Generic vs Branded

US Market Size• The world’s largest pharmaceutical market.• Estimated at $300 billion in 2009• Growth has decreased due to an increase

in the number of drugs losing patent protection

• U.S. generic drug market is estimated at $34 billion (41% of global sales)

US Industry Leaders

Global Industry Leaders

Company Location Sales (in billions)

Teva Israel $11.03Sandoz Germany $8.52Mylan US $4.99Actavis Switzerland $2.52Hospira US $2.35Watson US $2.27Sanofi France $2.04Greenstone US $1.72Stada Germany $1.50Dr Reddy’s India $1.16

In the Beginning• “Under the DESI (Drug Efficacy Study

Implementation), the National Research Council was able to assess over 3000 products • The review allowed drug makers to apply for

approval of “similar” generic drugs without bio-testing• Giving way to Generic Pharmaceuticals• The Hatch-Waxman Act of 1984 was passed

allowing the Food and Drug Administration to approve generic drugs for sale

Future: Patent Cliff

29.4

12.512.9

6.26.4

2.2

2012 2013 2014 2015 2016 2017

The Patent Cliff is an event in which a large number of patents lose their protection and become available to Generic Pharmaceuticals.

At the end of 2011, roughly 30 billion dollars lost their patent protection.

(US) Billions

Mylan v. Sanofi • Founded in US• Revenue- $4.99

Billion• +12% growth

over 2011• Located in 150

countries• Has the largest

generic pipeline worldwide

• Founded in France• Revenue- $2.03

Billion

• +15% growth over 2011 • Located in 100

countries• Offers the

broadest range of vaccines

Industry Past •Has experienced rapid growth •Saved US healthcare $1.07 Trillion in the past decade (2002-2011)

Industry Future • In 2016, patents worth over $40 billion dollars in US sales will lose patenting protection•This will give the industry access to a wide range of drugs previously unreachable

Prescriptions Filled

Generic Pharmaceu-ticals

Other

Present Ind.

• In 2011Generic Pharmaceuticals filled 80% of the prescriptions in the US

• Yet consumed only 27% of total drug spending

Spending

GenericOther

Industry Future •Many of the highest grossing brand name drugs lost patent-protection between 2011-2012, leading to an estimated loss of $140 billion to generic competition by 2017