The US Pharmaceutical Industry at a Glance & Upcoming Trends
The United States of America is known for its dominance in the pharmaceutical industry and continues to rule the roost. It is the home to some of the biggest names in the pharma sector inclusive of Johnson & Johnson, Merck & Co., Abbot Laboratories, Biogen and Pfizer to name a few. Pfizer retains its number one position not only in the US, but in the entire world. Johnson and Johnson barely needs an introduction and this market leader generated a whopping revenue of $42.2 billion in 2019 alone.
A Whopping 20 Percent Investment on Research and Development
U.S’ immense contribution to the global pharmaceutical is unquestionable and that can be easily attributed to their emphasis on research and development (R&D). Pharmaceutical companies in the US shell out about 20 percent of their total expenditure on research and development. This is apparently not a small investment and all of it goes down the drainage, if a medication isn’t approved from the regulatory bodies. They spent around $80 billion on research and development in 2018.
US Pharma Industry will be worth $685.45 billion by 2023
Despite the recent slump owing to the price erosion in U, the US pharmaceutical market is steadily poised to grow. It is expected to retain its number one position with a huge market share of 43.72% in 2023. The US pharma market is estimated to be worth $685.45 billion by 2023. The figure is also expected to rise even further because of the costs associated with the development of effective and safe COVID 19 vaccines.
One of the prime reasons behind the humungous growth of the US market is ageing population.
More than 15 of US populace is comprised of citizens above 65 years of age. The growth of US pharmaceutical industry is also propelled due to the improvements in purchasing power and increased access to quality healthcare services to poor and middle class families across the world map. The income level of an average American is predicted to rise by 3.21 percent by 2023 which is another encouraging factor substantiating the growth predictions of the US pharma industry.
US’ emphasis on innovations in biologics, cell therapies, bioelectronics & implantables, and nucleic acid therapeutics has also attracted huge investments.
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