Pharmaceuticals

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Pharmaceutical is responsible for the development, production and marketing of medications. Thus, its immense importance as a global sector is inarguable. In 2014, total pharmaceutical revenues worldwide had exceeded one trillion U.S. dollars for the first time. North America is responsible for the largest portion of these revenues, due to the leading role of the U.S. pharmaceutical industry. However, as in many other industries, the Chinese pharmaceutical sector has shown the highest growth rates over previous years.

The pharmaceutical industry has become a large and very complex enterprise. At the end of the 20th century, most of the world's largest pharmaceutical companies were located in North America, Europe, and Japan; many of the largest were multinational, having research, manufacturing, and sales taking place in multiple countries.

The pharmaceutical industry is best known for manufacturing pharmaceutical drugs which aim to diagnose, cure, treat, or prevent diseases. The pharmaceutical sector represents a huge industry, with the global market valuing in at nearly one trillion U.S. dollars.

In 2017, the United States was still the largest single pharmaceutical market, generating more than 450 billion U.S. dollars of revenue. Europe was responsible for generating around 214 billion U.S. dollars. These two markets, together with Japan, Canada and Australia, form the so-called established (or developed) markets. The rest of the global pharmaceutical revenue is mainly from emerging markets which include countries like China, Russia, Brazil and India. In fact, these emerging markets show the fastest increase in pharmaceutical sales. Latin America and the Indian Subcontinent are the only world regions for which a pharmaceutical compound annual growth rate higher than 10 percent is predicted up until 2018.

Pharmaceuticals are generally classified by chemical group, by the way they work in the body (pharmacological effect), and by therapeutic use.

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