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The Canada pharmaceutical market size is estimated to grow by USD 8.73 billion at a CAGR of 4.6% between 2023 and 2028.
Moreover, Canada's pharmaceutical sector thrives on robust R&D capabilities, a skilled workforce, and advanced healthcare infrastructure. Major players like Novartis AG and Pfizer Inc. invest heavily in various facets of the industry, including R&D, manufacturing, and innovation initiatives. Novartis AG, for instance, allocated USD 450 million for pharmaceutical expansions, with an annual R&D investment of USD 30 million. Pfizer Inc. partnered with Communitech, investing USD 1.4 million to foster healthcare innovation. Such substantial investments drive growth in Canada's pharmaceutical market.
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Life sciences companies produce vital medical items like personal protective equipment and ventilators. Healthcare workers adhere to strict security protocols, including plexiglass barriers and sanitizer use. Measures like social distancing and self-isolation are implemented. Ongoing research and development drive advancements in pharmaceuticals and biomanufacturing, crucial for combatting chronic diseases such as hypertension, osteoarthritis, and cancer.
The market share by the pharmacy segment will be significant during the forecast period. The pharmacy sector in the pharmaceutical market in Canada encompasses hospital and retail pharmacies. Hospitals maintain direct ties with drug manufacturers, ensuring a steady drug supply, negotiating prices, and upholding quality standards. They track patients' medication history for treatment monitoring and accountability, providing education on medication usage.
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The pharmacy segment was valued at USD 26.79 billion in 2018. Further, retail pharmacies, known for accessibility and convenience, offer not just prescriptions but also healthcare services like consultations and vaccinations. They educate patients on medication usage, side effects, and precautions, empowering them to manage their health effectively. Both sectors contribute significantly to the pharmaceutical market, meeting diverse consumer needs and driving growth of the market during the forecast period.
The prescription?segment will account for the largest share of this segment.?As the elderly population grows, so does the demand for prescription drugs to manage chronic conditions like cardiovascular diseases, high blood pressure, and diabetes. In Canada, the availability of prescription medications has increased with advancements in medical treatments. Government policies promoting healthcare access and affordability further drive prescription drug usage. Increasing awareness among Canadians about health conditions and treatment options leads to more consultations with healthcare professionals and prescriptions. This trend supports the growth of the pharmaceutical market in Canada during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market. The report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Abbott Laboratories, AbbVie Inc., Amgen Inc., Apotex Inc., Bayer AG, Boehringer Ingelheim International GmbH, Bristol-Myers Squibb Company, Eli Lilly and Co., F. Hoffmann La Roche Ltd., Gilead Sciences Inc., GlaxoSmithKline Plc, Johnson and Johnson Services Inc., LES LABORATOIRES SERVIER, Merck and Co. Inc., Novartis AG, Pfizer Inc., Sanofi SA, Sun Pharmaceutical Industries Ltd., and Teva Pharmaceutical Industries Ltd.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
In the realm of healthcare, life sciences companies play a pivotal role, producing essential medical items such as personal protective equipment and ventilators. Amidst heightened concerns, healthcare workers implement stringent security protocols, including the use of plexiglass barriers and sanitizers, alongside practices like social distancing and self-isolation. Advancements in research and development drive innovation in pharmaceuticals and biomanufacturing, yielding crucial vaccines for various ailments. The aging population faces challenges like chronic diseases such as hypertension, osteoarthritis, and cancer, necessitating the continuous launch of new OTC drugs and treatments, including those for atopic dermatitis and asthma. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
Increasing advancements in biotechnology is one of the primary market trends. The surge in biotechnological advancements can be attributed to the increasing emphasis on precision medicine, personalized therapies, and innovative treatment modalities, all of which are propelled by the rapid strides in biotechnological research and development. One key driver is the growing understanding of the genetic and molecular compositions of diseases. Biotechnology has enabled researchers and pharmaceutical companies in Canada to get deeper into the intricate mechanisms governing various medical conditions, paving the way for the development of targeted therapies.
Moreover, biologics are complex drugs derived from living organisms that are proving to be instrumental in treating conditions such as cancer, autoimmune disorders, and rare diseases. As a result, pharmaceutical companies are increasingly investing in research and production of biologics. Furthermore, the potential applications of such technologies are vast, ranging from correcting genetic mutations to developing entirely new therapeutic approaches. Thus, such factors will fuel market growth during the forecast period.
Price controls and reimbursement policies is the major challenge that affects market growth. The Canadian government, through agencies such as the Patented Medicines Prices Review Board (PMPRB), has implemented stringent measures to control and regulate drug prices, aiming to ensure affordability and accessibility for the public. While these policies benefit consumers, they create a complex market for pharmaceutical companies operating in Canada. One major challenge is that PMPRBs focus on comparing drug prices in Canada to those in other countries with similar economic profiles.
In addition, the Canadian Agency for Drugs and Technologies in Health (CADTH) and provincial drug plans play pivotal roles in determining which drugs receive public reimbursement. Delays in the reimbursement approval process can significantly impact a drug's market uptake and revenue generation. For instance, if a pharmaceutical company successfully brings a novel drug to market, the time it takes to secure reimbursement approval can hinder its commercial success, negatively affecting both the company's financial health and the timely availability of innovative treatments for patients. Such factors are expected to hinder the growth of the market during the forecast period.
The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
The market report forecasts market growth and forecasting by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The market thrives with innovative medicines catering to various ailments like ischemic heart disease, osteoporosis, and chronic obstructive pulmonary disease. With Health Canada overseeing product launches and approvals, the sector witnesses a blend of brand-name pharmaceuticals and generic pharmaceuticals. CROs and CMOs drive research and development in patented therapies, gene and cell therapies, and nanomedicines. The market's growth is propelled by pharmaceutical sales in Canada and its contribution to the global market.
Additionally, in Canadian healthcare, the pharmaceuticals market plays a crucial role in addressing conditions like ischemic heart disease, prediabetes, and metabolic disorders. Governed by Health Canada regulations, it offers a range of Over-the-Counter (OTC) drugs for topical disorders such as atopic dermatitis. The market sees contributions from biopharmaceutical SMEs, contract research organizations (CROs), and contract manufacturing organizations (CMOs) in the research and development (R&D) of innovative drugs. With patents protecting biopharmaceuticals and brand-name products, the sector drives Canadian sales and offers solutions to various health issues.
Furthermore, in the market, various stakeholders like physicians, nurses, and volunteers collaborate to address health concerns such as ischemic heart disease (IHD) and melanoma. Governed by regulations from the Government of Canada, it caters to the geriatric population and offers treatments for conditions like atopic dermatitis. With contributions from biopharmaceutical SMEs, the market sees advancements in antihistamines, moisturizers, and antibiotics. The Canadian Dermatology Association plays a vital role in ensuring quality care and treatment options in various sub-sectors of healthcare.
Canada Pharmaceutical Market Scope |
|
Report Coverage |
Details |
Page number |
148 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.6% |
Market Growth 2024-2028 |
USD 8.73 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.74 |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Abbott Laboratories, AbbVie Inc., Amgen Inc., Apotex Inc., AstraZeneca PLC, Bayer AG, Boehringer Ingelheim International GmbH, Bristol-Myers Squibb Company, Eli Lilly and Co., F. Hoffmann La Roche Ltd., Gilead Sciences Inc., GlaxoSmithKline Plc, Johnson and Johnson Services Inc., LES LABORATOIRES SERVIER, Merck and Co. Inc., Novartis AG, Pfizer Inc., Sanofi SA, Sun Pharmaceutical Industries Ltd., and Teva Pharmaceutical Industries Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Type
8 Market Segmentation by Therapy Area
9 Customer Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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