Pharmaceutical

Enquiry IconContact 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.

View More

Pharmaceutical Published Insights

Coherent Market Insights

Dental Caries Treatment Market, By Product Type (Dental Restoration, Dental Reconstruction, and Endodontic), By Geography (North America, Europe, Asia-Pacific, Middle East and Africa, and South America) - Size, Share, Outlook, and Opportunity Analysis, 2022 - 2028

Published Date : Oct 2022

The global dental caries treatment market was valued at US$ 6,302.2 Mn in 2021 and is forecast to reach a value of US$ 8,691.8 Mn by 2028 at a CAGR of 4.8% between&n... View more

Coherent Market Insights

Methotrexate Drugs Market, by Treatment Type (Psoriasis, Rheumatoid Arthritis, Cancer), by Route of Administration (Oral, Injection), 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, 2022 - 2030

Published Date : Oct 2022

Methotrexate is a folate antagonist. Methotrexate is one of the most effective and widely used medications for treating inflammatory types of arthritis. It is also one of the safest arthritis drugs. Methotrexate drugs are indicated for the treatment of Psoriasis, Rheu... View more

Coherent Market Insights

Scopolamine API Market, by Form (Powder and Liquid), by Purity (≥99% and ≥ 98%), by Scale of Production (Industrial scale, Pilot scale, and Laboratory scale), and by Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) - Size, Share, Outlook, and Opportunity Analysis, 2022 - 2030

Published Date : Oct 2022

Scopolamine, also known as hyoscine, or devil's breath, is a natural or synthetically produced tropane alkaloid and anticholinergic drug that is formally used as a medication for treating motion sickness and postoperative nausea and vomiting. It has applications in pr... View more

Coherent Market Insights

Testosterone Booster Market, by Component (Vitamins, D-Aspartic Acid, Zinc and Others), by Source (Mucuna Pruriens Ginseng, Oyster Extract, Fenugreek and Others), by Distribution Channel (Pharmacies, Hypermarkets & Supermarkets, Online Channels and Others), and by Region (North America, Latin America, Europe, Asia-Pacific, Middle East & Africa) - Size, Share, Outlook, and Opportunity Analysis, 2022 - 2030

Published Date : Sep 2022

Testosterone is a male sex hormone produced in the testicles. Normal male sexual development and function rely on testosterone hormone levels. During puberty (the teen years), testosterone aids boys in developing male characteristics such as body and facial hair, a de... View more

Coherent Market Insights

Beta Catenin Market, by Type (BBI-801, Exisulind, M-101, Nefopam Hydrochloride, and Others), by Application (Dermatology ,Oncology ,Genetic Disorder, and Others), and by Region (North America, Latin America, Europe, Asia-Pacific, Middle East, and  Africa) - Size, Share, Outlook, and Opportunity Analysis, 2022 - 2030

Published Date : Sep 2022

Β-catenin is a multifunctional protein that is essential for preserving physiological homeostasis. A variety of illnesses, including cancer, are caused by its aberrantly high expression. The human equivalent of the drosophila armadillo gene is called β-caten... View more

Coherent Market Insights

Vitamin and Mineral Supplement Tablets Market, by Type (Vitamins {Vitamin A, Vitamin C, Vitamin D, Vitamin E, Vitamin K, and Vitamin B} and Minerals {Calcium, Copper, Magnesium, Potassium, and Others}), by Distribution Channel (Hospital Pharmacies, Retail Pharmacies, and E-stores), and by Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) - Size, Share, Outlook, and Opportunity Analysis, 2022 - 2030

Published Date : Sep 2022

Vitamins and minerals are essential nutrients which get from eating a healthy however, Advisory Committee on Borderline Substances (ACBS) committee recommended vitamins and minerals to management actual or potential vitamin or mineral deficiency. Thus, an increase in ... View more

Coherent Market Insights

Metoprolol Tartrate Market, by Route Of Administration (Tablets and Injectable), by Application (Hypertension, Cardiovascular, and Others), by Distribution Channel (Hospitals 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, 2022 - 2030

Published Date : Sep 2022

Metoprolol tartrate is used as a drug for treating high blood pressure which is also known as hypertension. It helps to reduce the high blood pressure to prevent heart strokes, heart attacks, and kidney problems. Metoprolol tartrate is also used for treating chest pai... View more

Coherent Market Insights

Veterinary Tuberculosis Vaccine Market, by Type (Live Attenuated, Inactivated), by Route of Administration (Sub-cutaneous, Intramuscular, Oral), by Animal Type (Cattle, Dogs, Cats, Others), and by Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) - Size, Share, Outlook, and Opportunity Analysis, 2022 - 2030

Published Date : Sep 2022

Bovine Tuberculosis (TB) is an infectious disease of cattle. It is caused by the bacterium Mycobacterium bovis (M. bovis), which can also infect and cause disease in several other mammals including humans, deer, goats, pigs, cats, dogs, and badgers. In cattle, it is m... View more

Subscribe Newsletter

Kindly subscribe for our latest news & articles.