Pharmaceutical

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.

View More

Pharmaceutical Published Insights

Coherent Market Insights Small Molecule Prefilled Syringes Market

Published Date : Sep 2023

Prefilled syringes have several advantages over traditional vial packaging, including ease of use. Prefilled syringes obviate the need for the processes that are required before using a drug in a vial. It also helps to eliminate dosing errors because prefilled syringe... View more

Coherent Market Insights Chemotherapy Induced Thrombocytopenia Therapeutics Market

Published Date : Sep 2023

Thrombocytopenia is a condition in which blood platelets are low in person’s body. Thrombocytes are colourless blood cells that help blood clot. Thrombocytopenia is common in cancer patients. The occurrence of chemotherapy-induced thrombocytopenia varies from pe... View more

Coherent Market Insights Minoxidil Market

Published Date : Sep 2023

Minoxidil is an antihypertensive available in topical as well as oral solution used for hair loss treatment. It helps to stimulate hair growth and to slow balding. This drug is U.S. Food & Drug Administration (U.S. FDA) approved for androgenetic alopecia and femal... View more

Coherent Market Insights Us Clinical Nutrition Market

Published Date : Sep 2023

Clinical nutrition involves the study of prevention, diagnosis and management of nutritional and metabolic changes related to various diseases such as diabetes, cancer, metabolic syndrome, Inflammatory Bowel Movement (IBD), and others caused by a lack or excess of ene... View more

Coherent Market Insights Saudi Arabia Pharmaceuticals Market

Published Date : Sep 2023

Saudi Arabia pharmaceutical drugs market growth is driven by various factors such as population growth, investment of companies in halal pharmaceuticals, decrease in fertility rates, and increase in life expectancy. The market is witnessing increasing investments by m... View more

Coherent Market Insights Us Intravenous Solution Market

Published Date : Sep 2023

Intravenous solutions are supplemental fluids used in intravenous therapy to restore or maintain normal fluid volume and electrolyte balance when the oral route of administration is not possible in an individual. Intravenous therapy is a medical technique that deliver... View more

Coherent Market Insights Alopecia Treatment Market

Published Date : Sep 2023

Alopecia is the medical term for hair loss. Hair loss can happen naturally or as a result of a disease or the use of certain medications. Some common types of alopecia include: Androgenic alopecia is common in both men and w... View more

Coherent Market Insights Amitriptyline Market

Published Date : Sep 2023

Amitriptyline is a tricyclic antidepressant with sedative effects. Amitriptyline affects certain chemical messengers (neurotransmitters) that communicate between brain cells and help to regulate the mood. The drug is indicated for treatment of major depressive disorde... View more

Coherent Market Insights Progressive Familial Intrahepatic Cholestasis Type 2 Treatment Market

Published Date : Sep 2023

Progressive familial intrahepatic cholestasis type 2 (PFIC2) is a rare condition that affects the liver. People with this condition generally develop signs and symptoms during infancy, which may include severe itching, jaundice, portal hypertension (high blood pressur... View more

Coherent Market Insights Organ Transplant Immunosuppressant Drugs Market

Published Date : Sep 2023

After a successful organ transplant, you may have to take immunosuppressant drugs. These drugs help your immune system from attacking (rejecting) the new organ from which it has been transplanted. In general, they should be taken for your lifetime, or until the treatm... View more

Coherent Market Insights Artificial Bone Market

Published Date : Sep 2023

Artificial bone refers to bone-like material created in a laboratory that can be used in bone grafts, to replace human bone that was lost due to severe fractures, diseases, and others. Bone grafts are used as a filler and scaffold to facilitate bone formation and prom... View more

Coherent Market Insights Interferon Beta Drugs Market

Published Date : Sep 2023

Interferon beta drug is used to treat relapsing forms of multiple sclerosis (MS), including clinically isolated syndrome, relapsing-remitting disease, and active secondary progressive disease. The drug does not completely cure the condition, but slows down progression... View more

Coherent Market Insights Antibody Drug Conjugates Market

Published Date : Sep 2023

Antibody Drug Conjugates (ADCs) are targeted medicines that deliver chemotherapy drugs to cancer cells. The mechanism of action (MOA) of antibody-drug conjugates is fairly straightforward. When a portion of the antibody-drug conjugate is administered intravenously and... View more

Coherent Market Insights Active Pharmaceutical Ingredients Market

Published Date : Sep 2023

Active pharmaceutical ingredients (APIs) and excipients are the two most important components in the production of a medication. API is the raw material, which is used in manufacturing medications, whereas excipient is a substance that functions as a medium to help th... View more

Coherent Market Insights Global And China Osteoporosis Drugs Market

Published Date : Sep 2023

Osteoporosis is characterized by reduction in the density and quality of bones that often result in broken bones in the wrist, hip, and spine. Various factors responsible for osteoporosis include, genetic factors, low intake of calcium, magnesium, and vitamin D, eatin... View more

Coherent Market Insights Erectile Dysfunction Market

Published Date : Sep 2023

Erectile dysfunction is the inability to maintain a firm erection during sexual activity. It is a sign of a physical or psychological condition. Erectile dysfunction is caused by stress, age, depression, diabetes, Blood pressure issues or an unhealthy lifestyle. Vario... View more

Coherent Market Insights Opioid Drugs Market

Published Date : Sep 2023

Opioids are a class of drugs which are largely used for relieving pain. One of the first opioid drugs ‘morphine’ was developed in 1803. Opioid drugs act on the opioid receptors present in the central and peripheral nervous system thus providing relief from... View more

Coherent Market Insights Depression Therapeutics Market

Published Date : Sep 2023

Depression has emerged as a ‘silent killer’ in several regions across the world, particularly in urban cities. The prevalence of depression continues to grow rapidly with considerably high mortality and morbidity rate due to which, the healthcare sector co... View more

Coherent Market Insights Bone Cancer Treatment Market

Published Date : Sep 2023

Cancer is one of the most prevalent fatal chronic disorders with a high mortality rate due to its extremely invasive nature and prolonged duration of disease. Bone cancer is a type of cancer in which the bone tissues grows in an uncontrollable manner. The market of bo... View more

Coherent Market Insights Enteral Nutrition Market

Published Date : Sep 2023

Enteral nutrition refers to delivery of food containing carbohydrates, proteins, water, fat, minerals, and vitamins in the body using gastrointestinal tract with the help of feeding tubes. It is imperative for patients having functional gastrointestinal tract however ... View more

© 2024 Coherent Market Insights Pvt Ltd. All Rights Reserved.