Orion develops products that are sold worldwide and marketed in over a hundred countries. Human pharmaceuticals sold through its own network or marketing partners account for about 80% of Orion's net sales.

Orion's own sales network covers almost all key European markets. Outside Europe Orion operates through marketing partners. Sales through partners account for just under one-third of the orion Group's net sales. 

Finland is Orion's most significant market, and the Finnish market accounts for about one-quarter of Orion's net sales. Treatment of Parkinson's disease is the most important individual therapy area for Orion, and accounts for about one-third of the Group's net sales.

Orion is a medium-sized company in Europe and about the 70th largest pharmaceutical company in the world.

Developing markets are the drivers of growth

The pharmaceutical sector is relatively stable and steadily growing. According to IMS Health pharmaceutical sales statistics, the global market for pharmaceuticals is forecast to grow by 5–8% per year and is estimated to exceed USD 1,100 billion by 2014. The fastest growth will be in developing markets, where annual growth will average 17%. The Japanese pharmaceutical market is estimated to be growing by 5–7%, growth of 3–5% is forecast in the United States and growth in Europe is expected to remain at 1–3% per year. ¹⁾

Expiry of patents a shared challenge in the sector

Although the sector has been growing steadily for a long time, the biggest challenge for many pharmaceutical companies in the near term is the expiry of patents on their main pharmaceutical products in the next few years. The expiry of patents is expected to cut about USD 140 billion from the pharmaceutical market in the next five years. ²⁾

 Expiry of patents is topical for Orion too, because in the main markets the most important Parkinson's drug patents and product protections will expire in 2012–2013. Orion has prepared for the future and started renewing and expanding its product ranges and market areas.

Governments in saving drives

In recent years the financial situation prevailing especially in Europe has created its own challenges to the growth of pharmaceutical companies. As the financial situation has tightened, governments have sought ways to make savings, and there has often been a desire to cap the costs of drugs treatments through, for example, more stringent reimbursement requirements and market-specific price cuts. This has highlighted the benefits of value-adding drug treatments in intensifying competition.

In spring 2009 a reference price system was implemented in Orion's important market Finland, halting growth of the pharmaceutical market. Implementation of the system clearly intensified price competition, and the value of the market as a whole continued to decrease in 2010. Orion managed to grow in the declining market and therefore strengthened its position as the clear market leader.

Customer's many faces

The concept of a customer relationship is multifaceted. Traditionally, doctors and other health care professionals have been considered the most important customer group for pharmaceutical companies, and they are still an important target group. The tougher financial situation has made the payers of drug treatments an increasingly important customer group, as their role in decision-making has grown. The payers can be a government authority, insurance company, hospital district or individual hospital, depending on the country.

Pharmacies are a very important link in the pharmaceutical distribution chain, because they play a part in deciding what products are offered to the end-user. The role of patients in treatment selection is also growing, as information becomes ever more widely available about diseases and treatments for them.

¹⁾ IMS Health 2010
²⁾ EvaluatePharma 2010: "World Preview 2016"