Canadian Packaging Machinery Market Research Report - PMMI

5.0 THE PHARMACEUTICAL AND PERSONAL CARE INDUSTRY
5.1 INDUSTRY OVERVIEW
In Canada, there is a great deal of overlap between the pharmaceutical products
market and the personal care products market in that many companies operate in
both segments simultaneously. The pharmaceutical and personal care products
markets are dominated by leading multinational firms, which means that many of the
manufacturers operating in Canada are wholly owned divisions of foreign
multinational firms. Almost two-thirds of the pharmaceutical drugs sold in Canada are
imported. In 2002, $C 8.010 billion dollars of prescription and non-prescription drugs
were imported into Canada.
The Canadian pharmaceutical manufacturing industry shipped goods of its own
manufacture valued at $C6.793 billion in 2001. The industry is a high growth sector
of the economy, as the value of its manufacturing shipments grew 24.6 per cent
between 2000 and 2001. In 2001, the value of the industry's shipments accounted for
approximately 1.2 percent of the value of Canada's total manufacturing shipments.
Statistics Canada data for 2001, the last year for which complete industry data are
available, indicate that the industry consisted of 257 establishments that employed
25,013 people.
The Canadian pharmaceutical industry comprises research dependent brand name
drug manufacturers, which are largely foreign-owned multinationals, Canadianowned
bio-pharmaceutical companies, and Canadian and foreign-owned generic
drug manufacturers. In Canada, the large pharmaceutical companies are clustered in
the Montreal and Toronto metropolitan areas, as are the majority of contract research
and clinical trials organizations. In particular, Toronto is home to more than half of
Canada’s brand name pharmaceutical manufacturers, and 80 percent of the
country’s generic drug manufacturers.
According to the Patented Medicine Prices Review Board, sales of human use
pharmaceuticals, both prescription and over-the-counter, by all manufacturers in
Canada totaled $C13.1 billion in 2002, a 13.9 percent increase over 2001 sales. The
2002 total includes domestic sales and exports as well as the sale of imported
products. Of the $C13.1 billion, patented pharmaceutical sales accounted for $C8.8
billion and non-patented pharmaceutical sales totaled $C4.3 billion. Of the $C4.3
billion non-patented pharmaceutical sales, non-patented brand name pharmaceutical
sales accounted for $C2.9 billion and generic pharmaceutical sales accounted for
$C1.4 billion.
According to the Canadian Institute for Health Information, total private and public
spending at the retail level on prescription and non-prescription drugs reached
$C18.1 billion in 2002. The non-prescription drug category is composed of over-thecounter
drugs and other personal health supplies. Prescription drug spending
reached $C14.6 billion in 2002, which represented 80.3 percent of total private and
public drug expenditures. Non-prescription drug spending reached $C3.6 billion in
2002, which represented 19.7 percent of total private and public drug expenditures.
SMG/Columbia Consulting Group Page 160