Pharmaceutical

Contact Us

The global pharmaceutical industry is undergoing a consolidation phase in order to combat price pressure, competition and patent cliffs. Innovation is of vital importance for steady growth of pharmaceutical companies. Pharmaceutical companies have been mainly dependent on a few blockbuster molecules. However,with rapid decline in research and development (R&D) productivity and non-conducive regulatory environment, companies need to find different avenues of growth. The patent expiry of blockbuster drugs is expected to pave way for generics. Due to difference in genetic composition of varied individuals, innovation is becoming more complex.This is influencing players offering complementary products and services to collaborate for new product development.

There are four major factors that are impacting the value creation in pharmaceutical industry:

  • Market
    • Stress from patent expiries, niche marketing, and patient-centricity is challenging the growth plans of pharmaceutical companies. Moreover, in emerging markets, companies face strong competition from local players,who sell product at a much lower cost. To counter the same global companies need to significantly reduce their profit margins.
  • Technology
    • Rapid integration of healthcare and information technology is posing threat for current blockbuster drugs
    • Products based on new technologies offer superior properties and are more efficient as compared to existing products in the market
  • Regulation
    • There is constant price pressure from governments to meet demands of growing number of patients
    • Emerging markets have regulatory uncertainty, where decisions are made to protect the interests of the general population
    • Moreover, governments, especially in emerging economies are encouraging pharmaceutical companies to focus on preventive measures for diseases, which involves major investments
  • Innovation
    • Need for innovative products or therapies is rising constantly due to rising pressure of patent-cliff coupled with reducing profit margins
    • Identification of new bacterial and viral strains is driving the need for novel drugs

Demand for personalized medicines is increasing in order to ensure effective treatment of various diseases

Investments in R&D for oncology and NCDs are increasing globally in order to provide cost-effective solutions available to ailing patients.

Market Challenges

The industry is facing certain challenges such as patent cliff, cost pressure and regulatory uncertainties across the globe. This is hindering market growth to a certain extent. Moreover, regulatory authorities are becoming more stringent with the drug approval process. However, with respect to drugs for rare diseases, the FDA has offered a fast-track approval process. Moreover, demand for cost-effective treatment for chronic and non-communicable diseases such as diabetes, hypertension, thyroid disorder, obesity, and cancer is increasing. However, there is a dearth of strong products in the pipeline that offer better treatment option with fewer side effects. The fear of side effects and long-term treatment costs is encouraging patients to shift to alternative therapies.

Combating Challenges

Market players need to combat these challenges and keep their pace with the industry to sustain their market share. Mergers, acquisitions, and divestitures of products, companies or business division is a rapidly emerging trend in the market to combat prevalent challenges in the market.Companies are more focused in terms of therapy areas and hence, are divesting less focused therapy businesses. A good example is the swap deal between GSK and Novartis in 2015.

Moreover, pharmaceutical companies are investing in consumer health products,with increasing consumer’s health awareness and emerging trend of self-medication. These trends are encouraging pharmaceutical companies to enter the OTC market and leverage their brand equity among the doctors, chemists and consumers. Companies such as GlaxoSmithKline, Cipla, Pfizer, Merck, Sun Pharma, and Abbott have a focused division or subsidiary for consumer healthcare products and markets.

Moreover, to combat increasing cost pressure, companies are evolving their distribution channel. Establishing facilities or presence through collaboration in regional markets has helped companies meet local demand with reduced costs and delivery time. Emergence of e-pharmacy has resulted in creation of a separate team in the organization to service consumers ordering medicines online. Moreover, companies are connecting with consumers through social media, which helps improve brand visibility. The distribution channel has thus evolved significantly from the decade old channel consisting of only wholesalers and physical retail shops.

Patient-centricity

Patients are increasingly becoming well informed and organized, sometimes demanding for a particular product from prescribers. Therefore, companies need to be more patient-centric in their approach and provide quality care to consumers. Pharmaceutical companies are focusing on established direct to consumer distribution channels and establishing a more strong relationship with them. Moreover, companies are creating a good purchase experience for consumers through different offerings such as post-purchase medical services, engaging the patient through social media and events, and providing regular product alerts and refilling services.

Growth in Emerging Economies

The pharmaceutical industry is rapidly expanding in emerging economies such as Asia Pacific, Africa, and Latin America. These regions possess immense potential for growth of pharmaceutical companies, owing to inadequate access to medicines, growing population and increasing incidence of non-communicable diseases (NCDs). Besides, demand for contract research and manufacturing is also high in these regions. China and India are the largest emerging markets for CRO and CMO. Companies are highly dependent on China for API supply owing to low purchase cost. Overdependence on a single country can pose a challenge for the pharmaceuticals sector in the near future. Therefore, other emerging countries such as India, Brazil and South Africa are encouraging investments in their country. Besides, global companies are establishing their facilities in Asia Pacific, Middle East and Latin America regions to enable close monitoring and servicing of lucrative regional markets.

Conclusion

Pharmaceutical companies need to focus on an integrated, patient-centric, value-driven approach along with technology integration and strategic partnerships in order to capitalize on lucrative growth opportunities in the market. Major global players in the market include Pfizer Inc., Merck & Co., Inc., Bayer AG, GlaxoSmithKline plc., Sanofi, F. Hoffmann-La Roche AG, AstraZeneca plc. and Novartis AG.

There is a paradigm shift in process in the global pharmaceutical industry from product to a ‘Prodice’ (Product and Service) model, to offer affordable, accessible and quality care to patients.

Read More

Pharmaceutical Published Insights

Coherent Market Insights

Beta-thalassemia (B-thal) Market, by Treatment (Iron Chelating Drugs, Erythroid Maturation Agents, Stem Cell Therapy, and Others), by Disease Indication (Beta Thalassemia Minor, Beta Thalassemia Intermedia, and Beta Thalassemia Major), and by Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) - Size, Share, Outlook, and Opportunity Analysis, 2021 - 2028

Published Date : Nov 2021

Beta thalassemia is an inherited blood disorder in which the patient’s body doesn't make hemoglobin normally. Hemoglobin is the part of red blood cells (RBCs) that carries oxygen throughout the human body. The abnormal hemoglobin can lead to anemia (not enough R... Read more

Coherent Market Insights

Bowen Disease Treatment Market, by Drug Type (Fluorouracil, Imiquimod, and Others), by Distribution Channel (Hospital Pharmacies, Retail Pharmacies, and Online Pharmacies), and by Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) - Size, Share, Outlook, and Opportunity Analysis, 2021 - 2028

Published Date : Nov 2021

Bowen disease is the early form of squamous cell carcinoma and is also known as squamous cell carcinoma in situ. For instance, according to an article published by the Open Access Macedonian Journal of Medical Sciences in February 2019, it is estimated that around 3- ... Read more

Coherent Market Insights

Biliary Atresia Treatment Market, by Disease Type (Type I, Type II, and Type III), by Treatment Type (Medications (Bile Acids, Antibiotics, and Corticosteroids) and Surgery), and by Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) - Size, Share, Outlook, and Opportunity Analysis, 2021 - 2028

Published Date : Nov 2021

Biliary atresia is a rare condition which majorly occurs in infants. In this condition, the bile ducts that transport bile from the liver to the gall bladder are blocked. The symptoms of this disease appear about two to eight weeks after birth. Symptoms of the biliary... Read more

Coherent Market Insights

Yellow Fever Treatment Market, by Transmission Type (Sylvatic Yellow Fever, Intermediate Yellow Fever, and Urban Yellow Fever), by Treatment Type (Vaccines, Medications, and Others), by Application (Hospitals, Clinics, Community Health Centers, and Others), and by Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) - Size, Share, Outlook, and Opportunity Analysis, 2021 - 2028

Published Date : Nov 2021

Yellow fever is an epidemic-prone disease caused by the bite of an infected mosquito that can be prevented by vaccination. Yellow fever is caused by an arbovirus (a virus spread by vectors such as mosquitoes, ticks, or other arthropods) that is spread to humans by inf... Read more

Coherent Market Insights

Acute Kidney Injury Treatment Market, by Type (Prerenal Acute Kidney Injury, Intrinsic Renal Acute Kidney Injury, and Postrenal Acute Kidney Injury), by Treatment (Therapy, and Drugs), by Distribution Channel (Hospital Pharmacies, Retail Pharmacies, and Online Pharmacies), and by Region (North America, Latin America, Europe, Asia-Pacific, Middle East, and Africa) - Size, Share, Outlook, and Opportunity Analysis, 2021 - 2028

Published Date : Oct 2021

Acute kidney injury occurs when the kidneys suddenly stop filtering waste products from the blood. Kidney failure affects body fluids, electrolytes, and acid-base balance. Acute kidney injury involves prerenal, postrenal, and intrinsic failures. Depending upon the sev... Read more

Coherent Market Insights

Brain Hemorrhage Market, by Drug Type (Anti-hypertensive Drugs, Anti-convulsants Drugs, Hyperosmostic Drugs, and Others (others include Anti-epileptic Drugs, Anti-pyretic Drugs, etc.)), by Distribution Channel (Hospital Pharmacies, Retail Pharmacies, and Online Pharmacies), and by Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) - Size, Share, Outlook, and Opportunity Analysis, 2021 - 2028

Published Date : Sep 2021

Brain hemorrhage also known as a brain bleed or an intracranial hemorrhage, refers to a life-threatening health condition in which blood vessel ruptures and causes bleeding inside or over the surface of brain. Some of the causes of brain hemorrhage include head trauma... Read more

Coherent Market Insights

Prothrombin Complex Concentrates Market, by Type (3-FactorPCC and 4-Factor PCC), by Application (Acquired Coagulation Factor Deficiency, Congenital Coagulation Factor Deficiency, and Others), by End User (Hospital, Ambulatory Surgical Centres and Others), and by Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) - Size, Share, Outlook, and Opportunity Analysis, 2021 - 2028

Published Date : Sep 2021

Prothrombin complex concentrate is manufactured through a process of ion-exchange chromatography from the cryoprecipitate supernatant of large plasma pools after the removal of factor XI and antithrombin. These concentrates are used to treat and prevent bleeding in th... Read more

Subscribe Newsletter

Kindly subscribe for our latest news & articles.