Biotech Values

[DewDiligence]

Factoids re The Global Demographic Tailwind†

These items provide some perspective for the recent dealmaking by various drug/biotech companies:

• Emerging markets* comprise 80% of the world’s population and 40% of worldwide ‡PPP-adjusted economic activity, but they account for only 10% of the aggregate revenues of S&P 500 companies.

• If Proctor & Gamble were able to raise the per capita consumption of its products in China and India to merely the level of the per capita consumption of its products in Mexico, it would increase PG’s annual worldwide sales by 50% (about $40B of incremental revenue).

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*Emerging markets is not a precisely defined term, but it generally refers to the world other than the US, Europe, Japan, and Canada. The six BRIC-MT countries (Brazil, Russia, China, India, Mexico, Turkey) comprise a sufficiently large portion of emerging markets that they can serve as a first-order approximation for business purposes.

†See #board-15787.

‡Purchasing-power parity.

[This is a repost of a prior message on this board to fix an error with respect to the PPP footnote.]