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:
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.
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.
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.
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.
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.
Conventional drug delivery approaches have issues pertaining to repeated dosing and systemic toxicity. Hence, new drug delivery systems are now developed for overcoming these disadvantages and optimizing the therapeutic benefits of the drugs. Hydrogels have a wide ran... View more
Hydration therapy is a therapy that delivers fluids directly into the bloodstream through a small IV inserted into the arm. The fluids may include electrolytes, vitamins, antioxidants, and even medication in the mixture. By allowing fluids to circulate quickly through... View more
Mechanistic target of rapamycin (mTOR) is a protein kinase regulating cell growth, survival, metabolism, and immunity. Inhibitors of the mammalian target of rapamycin are a new class of immunosuppressants. There are three commercially available mammalian (mechanistic)... View more
Targeted drug delivery is a strategy that selectively and preferentially delivers a therapeutic agent to the target site and does not act on the non-target site at the same time. The nanoparticles are loaded with drugs and targeted at diseased tissue. The aim of a tar... View more
Benzodiazepines are a class of drugs that can be used to treat a variety of ailments such as anxiety, insomnia, seizures, social phobia, and panic disorder. Benzodiazepine are used for premedication before medical procedures. These drugs are normally safe and effectiv... View more
Suboxone is a medicine used to treat opioid (narcotic) drug dependence of drugs such as heroin or morphine in drug addicts. Suboxone is given to adults and children over the age of 15 who are also seeking medical, social, and psychological care. Suboxone has two... View more
Surge in the number of knee surgeries and arthroplasty and rising awareness about knee surgeries and arthroplasty is expected to drive growth of the knee surgeries and arthroplasty pain management therapeutics market during the forecast period ... View more
Vaccination enhances health of animals, thus improving their life expectancies. Veterinary vaccines are available for diseases such as rabies, E. coli, distemper, hepatitis rotavirus, parvovirus, brucellosis, and pinkeye. Various diseases such as foot-and-mouth diseas... View more
Sustained-release coating tablets are formulated in such a way that the release of the drug and its absorption will be slow. This will result in a lower peak blood level and hence, a lower risk of associated adverse effects such as gastrointestinal obstruction, nausea... View more
Vasopressin is antidiuretic hormone. It is naturally secreted by the pituitary gland, which acts on the kidneys and blood vessels. Vasopressin can be used to treat diabetes insipidus through different routes of administration such as intravenous injection, intramuscul... View more
P2Y12 is a chemoreceptor for adenosine diphosphate (ADP) that belongs to the Gi class of a group of G protein-coupled (GPCR) purinergic receptors. The P2Y12 receptor is involved in platelet aggregation and is thus a biological target for the treatment of thromboemboli... View more
The complete blood count (CBC) device is often used to screen for diseases as part of a medical assessment. It is useful in measuring the amounts of platelets, red and white blood cells, along with the hemoglobin and hematocrit values. By modality CBCs can be portable... View more
Specialty injectables can be defined as drugs therapies that are developed for the treatment of chronic diseases and require administration by injections. These specialty injectables are used for complex and rare diseases such as cancer, hemophilia, human immunodefici... View more
Injectables are preparations administered through the skin or other external boundary tissue, rather than through the alimentary canal, so that the active substance they contain are administered, using gravity or force, directly into a blood vessel, organ, tissue, or ... View more
Central Precocious Puberty (CPP) is referred to as gonadotropin-dependent precocious puberty. It is an endocrine-related developmental disease characterized by the onset of pubertal changes with the development of secondary sexual characteristics, accelerated growth, ... View more
Wilson’s disease is a rare genetic disorder characterized by excess copper stored in various body tissues, particularly in the liver, brain, and corneas of the eyes. The disease is progressive, and if lef... View more
Lupus is a chronic autoimmune disease wherein the body’s immune system fails to recognize its cells and tissues as self and starts attacking them. The four major types of lupus include systemic lupus erythematosus (SLE), cutaneous lupus erythematosus, drug-induc... View more
Adoptive cell therapy (ACT) is a kind of immunotherapy, in which T cells are genetically modified to express a chimeric antigen receptor (CAR) or T cell receptor (TCR). Adoptive cell therapy has made a great difference in treating multiple types of tumors. Some approaches of ACT involve dir... View more