On the one hand, the global marketplace has become
more liberalised, exposing products to competition. On the
other, governments and other agencies have tended to intervene
more as they become concerned at every increasing
healthcare costs associated with ageing populations. Measures
taken include strict controls on the prices of new drugs,
more cost–benefit analysis, and encouragement of the use
of generic substitutes or alternatives where possible.A further weakness that will hamper the large players
in the area is the historical dependence on “blockbuster”
drugs. A recent report by Datamonitor predicts that only 4
of the 19 companies currently selling blockbuster drugs will
be able to maintain double digit growth between 2001 and
2008 (Butler, 2002). This dependence is illustrated by the
following figures (Butler, 2002):