View from the Observation Deck

1. Global pharmaceutical sales by PhRMA member companies totaled an estimated $295.5 billion in 2011 (see chart), with 38% occurring outside the U.S. In 2006, that figure was 30%.
2. These nations followed the U.S.'s 62% share of global sales (by PhRMA members): Japan (4.6%); France (3.3%); Germany (2.7%); Italy (2.3%); and Canada (2.3%).
3. So-called "Big Pharma" is looking to expand heavily into emerging markets ("pharmerging"), particularly in Brazil, Russia, India & China (BRICs), where governments are investing more in health care. (IMAP, Inc.)
4. In 2010, the BRIC countries accounted for about 3.5% of total global sales. (PhRMA)
5. Approximately $89.5 billion worth of branded pharmaceuticals are scheduled to lose patent protection between 2009 and 2014. Generic sales are expected to grow from $107.8 billion in 2009 to $129.3 billion in 2014. (IMAP, Inc.)
6. Biologic sales, on the other hand, are expected to grow by $41 billion between 2009 and 2014. (IMAP, Inc.)
7. The fastest way for a drug company to acquire new medicines is through mergers and acquisitions and through licensing agreements, in our opinion.
8. In 2012, some drug companies have been willing to pay premiums 71%, on average, above a biotechnology company's average 20-day stock price (deals > $500 million in 2012) to acquire them. (Bloomberg)