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Pharmaceutical industry

UK Pharmaceutical Sector: Primary and Secondary Production Dynamics

Strategic Insights

— 1 min read

The UK pharmaceutical sector is a significant contributor to the country's economy, with both primary and secondary production playing crucial roles in the industry. Primary pharmaceutical production involves the production of active pharmaceutical ingredients (API), mainly carried out by large multinational groups. These companies include GlaxoSmithKline plc, Pfizer Incorporated, Novartis AG, Eli Lilly & Company, AstraZeneca plc, Wyeth, and others. However, development of primary production infrastructure has been slowing down, with a notable exception being Novartis' development of a major API site at Grimsby.

Key Takeaways:

  • The UK pharmaceutical sector comprises both primary and secondary production, with a focus on research and development.
  • Primary pharmaceutical production primarily involves the production of active pharmaceutical ingredients (API) by large multinational groups.
  • Notable companies involved in primary production include GlaxoSmithKline plc, Pfizer Incorporated, Novartis AG, Eli Lilly & Company, AstraZeneca plc, Wyeth, and others.
  • Development of primary production infrastructure has slowed down in recent years, with Novartis' development of a major API site at Grimsby being an exception.
  • Secondary production involves the manufacturing of finished pharmaceutical products, catering to domestic and international markets.
  • The UK pharmaceutical sector is dominated by companies such as Genzyme Corporation, Merck & Company, Incorporated, and Johnson & Johnson.

Statistics:

  • The UK pharmaceutical sector is valued at billions of pounds, with primary production accounting for a significant share.
  • As of 2009, GlaxoSmithKline plc had a market capitalization of over $100 billion (NYSE:GSK).
  • Novartis AG had a market capitalization of over $80 billion (NYSE:NVS) in 2009.
  • AstraZeneca plc had a market capitalization of over $50 billion (FY2008) (NYSE:AZN).
  • The number of R&D projects in the UK pharmaceutical sector has increased by 20% over the past five years (2004-2009).

Sources:

  • Protel Associates Limited, in alliance with Industrial Info Europe (Galway, Ireland)
  • Industrial Info Resources (IIR)
  • Comtex SmarTrend Alert (Aug 17, 2009)
  • Comtex News Network, Inc.
  • Marketwire via COMTEX (Aug 17, 2009)
  • The total value of the UK pharmaceutical sector was estimated at £10 billion (2007) (UK Office for National Statistics)
  • The pharmaceutical industry accounted for approximately 15% of the UK's total exports (2007) (UK Office for National Statistics)
  • Novartis AG's API site at Grimsby was developed at a cost of over £100 million (2008) (Novartis AG)

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