IMS Health Reports Global Pharmaceutical Market Grew 7.0 Percent in 2006, to $643 Billion

IMS Health (NYSE: RX), the world's leading provider of market
intelligence to the pharmaceutical and healthcare industries, today
announced that the 2006 global pharmaceutical market* (see endnote)
grew 7.0 percent, at constant exchange rates, to $643 billion. A
rebound in growth to 8.3 percent in the U.S. -- fueled by an increase
in prescribing volume due to Medicare Part D -- and innovations in
oncologics that drove strong 20.5 percent global growth in that
therapeutic class, were key contributors to the market's expansion.

"We continue to see a shift in growth in the marketplace away from
mature markets to emerging ones, and from primary care classes to
biotech and specialist-driven therapies," said Murray Aitken, IMS
senior vice president, Corporate Strategy. "Oncology and autoimmune
products increasingly are demonstrating their value in answering unmet
patient needs -- offering significant opportunities for growth."

In 2006, specialist-driven products contributed 62 percent of the
market's total growth, compared with just 35 percent in 2000. A number
of primary care classes are experiencing slowing or below
market-average growth due to the entry of lower-cost, high-quality
generics and switches to over-the-counter products. These classes
include proton pump inhibitors (PPIs), antihistamines, platelet
aggregation inhibitors, and antidepressants. Last year, generics
represented more than half of the volume of pharmaceutical products
sold in seven key world markets -- U.S., Canada, France, Germany,
Italy, Spain, and the U.K. This trend reflects the changing balance
between new and old products and the growing "genericization" of many
primary care categories.

Product Innovation, Pipeline Still Strong

In 2006, pharmaceutical growth continued to be driven by increased
longevity of populations, strong economies and innovative new
products. Last year, 31 new molecular entities were launched in key
markets. Overall, the contribution to global market growth by products
launched from 2001 to 2005 reached $13.5 billion in 2006.

Notable high-potential product launches in 2006 included
Gardasil(R), the first vaccine to prevent cervical cancer; Januvia(R),
the first-in-class oral for Type II diabetes; and Sutent(R) for renal
cancer.

"There have been some exceptional advances in medicine, but public
policy will continue to be the greatest influence in driving decisions
on healthcare spending," said Aitken. "To garner support for
innovative new drugs, the industry needs to better articulate the
value of its medicines -- demonstrating and quantifying the ability of
therapies to reduce total healthcare costs, increase economic
productivity, improve the quality of life and extend life itself."

Growth in the R&D pipeline remains strong, especially in the
number of products in Phase I and Phase II clinical development. At
the end of 2006, some 2,075 molecules were in development, up 7
percent from 2005 levels, and up 35 percent from the end of 2003. In
addition, a promising range of drugs are now in Phase III clinical
trials or pre-approval stage, including 95 oncology products, 40 for
viral infections and HIV, and 27 for arthritis/pain. Of the total
pipeline, 27 percent of these products are biologic in nature.

Leading Therapy Classes

Among audited therapy classes, the top-ranked lipid regulators
class increased 7.5 percent to $35.2 billion, despite patent loss from
simvastatin and pravastatin in major markets. New generics entries,
growth of innovative products such as Crestor(R) and Vytorin(R), and
the increasing demand for lipid regulators among Medicare Part D
patients in the U.S. continued to drive volume gains for this class.

Oncologics reached $34.6 billion in sales in 2006, up 20.5
percent. This significant growth, the highest among the top ten
therapeutic classes, was fueled by strong acceptance of innovative and
effective therapies that are reshaping the approach to cancer
treatments and outcomes. In 2006, innovation in oncology was
particularly active, with more than 380 compounds in development. Half
of the oncology products in late-stage development are targeted
therapies -- treatments directed at specific molecules involved with
carcinogenesis and tumor growth.

"Targeted therapies have revolutionized the way cancer is being
treated --opening up the possibility that many forms of the disease
can be fought through long-term maintenance therapy," said Titus
Plattel, vice president, IMS Oncology. "These therapies are helping to
win individual battles against cancer, enabling us to think of it as a
chronic illness, rather than a life-ending one. With the industry's
innovation and ongoing scientific advances, growth in targeted
therapies will continue to be very strong and the outcomes even more
impressive."

Respiratory agents were the third-largest therapy class last year,
with 10 percent growth in sales to $24.6 billion. Another therapeutic
class experiencing high growth was autoimmune agents, which grew at a
20 percent pace in 2006 to $10.6 billion in sales. Ranked twelfth in
size among leading classes, growth in autoimmune agents was fueled by
the increased use of anti-TNF agents such as Remicade(R) and Humira(R)
and the expansion of approved indications for these products.

Regional Performance

In 2006, North America, which accounts for 45 percent of global
pharmaceutical sales, grew 8.3 percent to $290.1 billion, up from 5.4
percent the previous year. This strong growth was due to the impact in
the U.S. of the first year of the Medicare Part D benefit and the
resulting increase in prescribing volume, as well as solid 7.6 percent
growth in Canada. The five major European markets (France, Germany,
Italy, Spain and the U.K.) experienced 4.4 percent growth to $123.2
billion, down from 4.8 percent growth in 2005, the third year of
slowing performance. Sales in Latin America grew 12.7 percent to $33.6
billion, while Asia Pacific (outside of Japan) and Africa grew 10.5
percent to $66 billion.

Japan experienced a 0.4 percent decline from a year earlier, to
$64.0 billion, the result of the government's biennial price cuts.
Pharmaceutical sales in China grew 12.3 percent to $13.4 billion in
2006, compared with a 20.5 percent pace the prior year. This slowdown
in growth was due to the government's introduction of a campaign to
limit physician promotion of pharmaceuticals. India was one of the
fastest growing markets in 2006, with pharmaceutical sales increasing
17.5 percent to $7.3 billion.

"Last year, India transitioned from a 'developing' market to an
emerging one, with many multi-national pharmaceutical companies
tapping into the huge potential this market offers," said Ray Hill,
IMS's general manager, Global Consulting. "Several factors, including
the acceptance of intellectual property rights, a robust economy and
the country's burgeoning healthcare needs have contributed to
accelerated growth in that country."

Overall, 27 percent of total market growth is now coming from
countries with a per-capita Gross National Income of less than
$20,000. As recently as 2001, these lower-income countries contributed
just 13 percent of growth.

Looking Ahead

Despite continued expansion of the pharmaceutical market,
underlying dynamics continue to alter the landscape. In 2006, products
with sales in excess of $18 billion lost their patent protection in
seven key markets -- including the U.S., which represents more than
$14 billion of these sales. With high uptake of lower-cost therapies
replacing branded products in classes such as lipid regulators,
antidepressants, platelet aggregation inhibitors, antiemetics and
respiratory agents, generics will assume a more central role as payers
seek to restrict the growth of healthcare expenditures. Another factor
influencing the market is the increasingly active role of patients as
they take charge of their health and demand greater access to
therapies that will improve or prolong their lives.

"We are seeing a critical shift in power in healthcare to emerging
stakeholders -- most notably, patients who are becoming savvy
co-managers of their own health," observed Aitken. "Because they are
both consumers and ultimate payers, they are gaining the power to
compel regulatory approvals, influence market access decisions, and
sway prescribing behavior."

These shifts are placing new demands on pharmaceutical and biotech
companies of all sizes. The most successful manufacturers will be
those that focus on payers and patients, without losing perspective on
the crucial role of physicians.

Said Aitken, "To sustain growth, pharmaceutical companies need to
stay ahead of the dynamics that are rebalancing the marketplace
worldwide. This requires a sharper focus on realizing productivity
gains from their sales, marketing and launch investments, a
comprehensive assessment of their R&D and portfolio strategies to
support opportunities in both emerging and mature markets, and a
commitment to better demonstrate the value of their medications among
key stakeholders."

Additional Information

*Total global pharmaceutical sales include audited and estimated
unaudited information. These pharmaceutical sales are derived from IMS
audits, which cover 94 percent of the market, while the remaining 6
percent are estimates derived from IMS Market Prognosis(TM). Growth in
sales is measured in constant dollars, enabling analyses without the
influence of fluctuating currency exchange rates. Pharmaceutical sales
figures are measured in current US dollars, include prescription and
certain over-the-counter data, and reflect ex-manufacturer prices.

All relevant information detailing 2006 global performance by
categories, including global pharmaceutical sales, pharmaceutical
sales by region, top ten therapy classes and products, by sales, can
be viewed on the IMS website at http://www.imshealth.com/media.

About IMS

Operating in more than 100 countries, IMS Health is the world's
leading provider of market intelligence to the pharmaceutical and
healthcare industries. With $2.0 billion in 2006 revenue and more than
50 years of industry experience, IMS offers leading-edge market
intelligence products and services that are integral to clients'
day-to-day operations, including portfolio optimization capabilities;
launch and brand management solutions; sales force effectiveness
innovations; managed care and consumer health offerings; and
consulting and services solutions that improve ROI and the delivery of
quality healthcare worldwide. Additional information is available at
http://www.imshealth.com.