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.
Non-small Cell Lung Cancer Treatment Market – Insights There is no exact reason defined yet by doctors behind the causes of lung cancer but few causes include smoking, ai... Read more
The ongoing research and development of drugs by market players is expected to drive growth of the global antifungal drugs market. In 2015, Astellas Pharma Company launched Isavuconazole (Cresemba) drug in Europe for treatment of adult patients with invasive aspergill... Read more
Protein A—a 42-kDa chemical component found in the cell wall of staphylococcus aureus—finds wide application in biotechnological industry. This is mainly attributed to features such as its ability to bind all human IgG class immunoglobulins except IgG3.... Read more
Candidiasis Market – Market Insights Candidiasis is a type of infection caused due to the yeast – candida, also classified as fungus, which is present in the human body. It is usually present in p... Read more
Pulmonary Arterial Hypertension (PAH) Market – Market Insights Pulmonary Arterial Hypertension (PAH) is a rare disease, which affects the pulmonary arteries. High blood pressure in the lungs is called... Read more
Sterile Injectables Market Insights Injectables are a compounded medication containing sterile drug with therapeutic actions, which is administered in the body through intravenous (IV) route of administratio... Read more
Erectile Dysfunction: A Prominent Age Related Disorder Erectile dysfunction (ED) is the recurrent inability to reach or to maintain a penile erection sufficient during sexual activities. It is one of the most... Read more
Viscosupplementation Market – Insights Viscosupplementation is a minimally invasive procedure that involves injection of the hyaluronic acid injected into a knee joint to promote better joint developme... Read more
Tuberculosis Drugs Market – Insights Tuberculosis (TB) is a chronic condition, and has become a global disease burden. Manufacturers of TB drugs are focused on developing drugs that can shorten the dura... Read more
Antibacterial drugs are majorly used in treatment and prevention of infectious diseases and are categorized into seven major classes based on their molecular structure namely, aminoglycosides, β-Lactams, tetracyclines, sulfonamides, quinolones, macrolides, and ph... Read more
Prefilled Syringes Market– Insights Prefilled syringes are one of the fastest growing choices for unit dose delivery and have emerged as one of the most convenient drug delivery methods in the recent ye... Read more
Precision Medicine Market – Insights Precision medicine is an emerging field, which tailors the treatment according to the individual’s genetic makeup, lifestyle, and environment. Precision medici... Read more
Legalizing Cannabis to Impact Opioids Agonist Drugs Market Growth Opioids are generally prescribed for treating pain. The opioid drug class includes morphine, hydrocodone, oxycodone, heroin, codeine, morphine... Read more
Smoking Cessation and Nicotine De-addiction Products Market – Insights Cigarette packs have been mandatorily carrying a warning stating that ‘Smoking is injurious to Health’, while some coun... Read more
Veterinary Vaccine Market– Insights Veterinary vaccination enhances health of animals, thus improving their life expectancies. Most common veterinary vaccines available for rabies, E. coli, distemper, h... Read more
Pharmaceutical Excipients Market – Market Insights Pharmaceutical excipients are designed to interact and enhance the properties of active pharmaceutical ingredients (APIs). Excipients are made to promo... Read more
Breast Lesion Localization Methods Market– Breakthrough in Breast Cancer Diagnosis Breast cancer is a condition caused by an uncontrolled multiplication of breast cells that form a lump, which may be ma... Read more
Medicinal Cannabis Market - Insights Medicinal cannabis is also known as medical marijuana which is used either to treat disease or to improve their symptoms. The two cannabinoids - delta-9-tetrahydrocannabin... Read more