Market Trends of North America Pharmaceutical Logistics Industry
This section covers the major market trends shaping the North America Pharmaceutical Logistics Market according to our research experts:
United States Leading the Pharmaceutical Market
In 2021, North America accounted for 49.1% of world pharmaceutical sales compared with 23.4% for Europe. According to IQVIA (MIDAS May 2022), 64.4% of sales of new medicines launched during 2016-2021 were on the US market, compared with 16.8% on the European market (top five markets). About 45% of the world's pharmaceutical market and 22% of its manufacturing are accounted for by the US. In 2022, US pharmaceutical production and sales were strong due to the ongoing global immunization campaign and the accumulated demand for both necessary and optional medical procedures. In 2021, brand-name medication companies' margins surged, creating a robust cash flow. Despite rising sales, wholesalers and distributors continue to operate on low-profit margins.
While immunizations will be a major factor in the sector's growth in 2023, the need for drugs will increase in the mid-and long term due to the aging population. Future expansion opportunities for the sector are further bolstered by the Supreme Court's ruling supporting the Affordable Care Act (Obamacare).
Increasing Merger and Acquisition Deals in the Pharmaceutical Sector in North America
A deal has been reached by GlaxoSmithKline PLC to buy Sierra Oncology Inc., a biopharmaceutical business that specializes in targeted treatments for the treatment of rare kinds of cancer, for USD 55 per share of common stock in cash, or roughly USD 1.9 billion (GBP 1.5 billion) in total equity. The shares of Sierra Oncology that are still outstanding will be canceled and converted into the right to receive USD 55 in cash per share under the terms of the agreement, which states that the purchase will be accomplished through a one-step merger. The price per share was higher by about 39% compared to Sierra Oncology's closing stock price on April 12, 2022, and by about 63% compared to Sierra's volume-weighted average price (VWAP) for the previous 30 trading days. The Board of Directors of Sierra Oncology unanimously advised Sierra's stockholders to support the merger's approval. Additionally, Sierra Oncology stockholders, who own around 28% of the company's outstanding shares, decided to vote their shares in favor of the merger's ratification.
A commercial-stage biopharmaceutical company named Biohaven Pharmaceutical Holding Company recently announced plans to acquire Channel Biosciences, a Knopp Biosciences LLC subsidiary, and its Kv7 channel targeting platform. This will expand Biohaven's expanding neuroscience portfolio by incorporating the most recent developments in ion-channel modulation.
A portfolio firm of Novo Holdings and a clinical-stage biotechnology company, Syndesis Therapeutics SA, was acquired by AbbVie.
