Despite a lot of negative press these last 12 months, sales were strong for most pharmaceuticals and nutraceuticals--thanks, in part, to the aging population and an emphasis on health and wellness.

Some manufacturers posted profits by successfully introducing new products. Others boosted their bottom line with acquisitions, divestitures, spinoffs or marketing agreements.

Our State of the Industry report analyzes the specific market issues and packaging trends in three subcategories:

1. Prescription (Rx) drugs.

2. Over-the-counter (OTC) medicines.

3. Vitamins/dietary supplements.

RX DRUGS

In May 2005, the House Appropriations Committee approved the Food and Drug Administration's 2006 budget of $1.48 billion. This represents a $30 million increase from last year. An amendment also provides for an additional $5 million in funding for the "highest priority drug safety needs," which shows FDA's commitment to America's health concerns.

Patient safety is the industry's No. 1 priority, but cost containment is next on the list. And satisfying both at the same time has been most challenging.