Executive Summary 5

Basics of the Industry 6
Industry Definition 6
Lifecycle of a Drug 6
Patent System 6
Drug Lifecycle 7
Drug Discovery 8
Development 10
Industry Cost Structure 11
Types of Costs 11
Pricing and Investment 13

Overview of the Global Pharma Industry 17
Background 17
Industry Analysis 18
Industry Size 18
Industry Segments 20
Geographic Distribution 22
Competitive Analysis 23
Market Outlook 25

Innovations in the Pharma Activities 26
Global Distribution of Activity 26
Innovation in Value Chain 27
Off-Shoring Pharmaceutical Activities 28

Key Markets 31
Europe 31
Belgium 32
France 34
Germany 36
Spain 38
Switzerland 40
United Kingdom 41
Asia-Pacific 44
Australia 44
China 46
India 48
Japan 50
South Korea 52
North America 53
United States 54
Canada 57

Profiles of Major Players 60
Abbott Laboratories 60
Astellas Pharma Inc 62
AstraZeneca Plc 63
Australian Pharmaceutical Industries (API) 66
Bayer AG 67
Bayer Schering Pharm 67
Bristol Myers Squibb Co. 68
Cerep SA 69
Cipla Ltd 70
Daewoong Pharmaceutical 70
Dong-A Pharmaceutical 71
Eli Lilly & Co. 72
GlaxoSmithKline Plc. 74
Harbin Pharmaceutical Group 78
Johnson & Johnson 79
Livzon Pharmaceutical Group 80
Merck Group 80
Novartis AG 84
Pfizer Inc. 86
Ranbaxy Laboratories Limited 88
Roche AG 89
Sanofi- Aventis 90
Schering-Plough Corporation 94
Sigma Pharmaceutical Ltd 96
Takeda Pharmaceutical Co 97
Wyeth 98

Appendix and Glossary 100

List of Figures

Figure 1: Diagram of Lifecycle of a Drug 7
Figure 2: Trends in R&D to Sales Ratio 12
Figure 3: Global Pharmaceutical Industry - Market Value (2002-2006) 19
Figure 4: Global Pharmaceutical Industry - Share by Therapeutic Areas (2005) 20
Figure 5: Breakdown of Global Pharmaceutical Market(2006) 22
Figure 6: European Pharmaceutical Industry 31
Figure 7: Belgian Pharmaceutical Industry 33
Figure 8: French Pharmaceutical Industry 35
Figure 9: German Pharmaceutical Industry 37
Figure 10: Number of Pharmaceuticals in Germany 37
Figure 11: Spanish Pharmaceutical Industry 39
Figure 12: Swiss Pharmaceutical Industry 41
Figure 13: UK Pharmaceutical Trade 42
Figure 14: Pharmaceutical R&D Expenditure in the UK 43
Figure 15: Australian Manufacturing Industry Sales 45
Figure 16: Breakup of the Chinese Pharmaceutical Market 47
Figure 17: Indian Pharmaceutical Market 48
Figure 18: Indian Pharmaceutical Industry by Therapeutic Areas 49
Figure 19: U.S. Pharmaceutical Industry by Sales 54
Figure 20: U.S. Pharmaceutical Industry by Type of Drugs 55
Figure 21: Canadian Pharmaceutical Market Sales 58
Figure 22: Timeline of Drug Innovation 100
Figure 23: Changes in Research Sites (2001-2006) 100
Figure 24: Worldwide Major Vaccine Manufacturers Market Value (€ million) 101
Figure 25: New Chemical and Biological Entities (1986-2005) 101
Figure 26: Allocation of R&D Investments by Function (%) 102

List of Tables

Table 1: Industry Sponsored Global Trial Sites by Region 9
Table 2: Business Expenditure on Pharmaceutical R&D by Country 27
Table 3: Top 10 Products by U.S. Dispensed Prescriptions 56
Table 4: Leading Products by Global Pharmaceutical Sales (2006) 102