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 Pediatric Clinical Trials Market

Published Date : Oct 2022

Pediatric clinical trials play a major role in modern healthcare, as pediatric clinical trials are the only criteria to launch new drugs in market for various indications that affect pediatric population. Clinical trials in children are essential to develop age-specif... View more

Coherent Market Insights Scopolamine Api Market

Published Date : Oct 2022

Scopolamine is an alkaloid drug extracted from a plant called henbane to treat nausea and motion sickness and further to dilate the pupil in ophthalmic procedures. Scopolamine belongs to a class of drugs called anticholinergic. Scopolamine is a tropane alkaloid isolat... View more

Coherent Market Insights Human Chorionic Gonadotropin Market

Published Date : Oct 2022

Human chorionic gonadotropin (HCG) is a hormone secreted by the placenta after implantation of a fertilized zygote in the uterus. The hormone also supports normal development of an egg and helps in the stimulation of egg release from the ovary. HCG is mainly used to i... View more

Coherent Market Insights Cordyceps Sinensis And Militaris Extract Market

Published Date : Oct 2022

Cordyceps (also known as caterpillar fungi) is an uncommon, resilient, and highly rated fungus that has been utilized in Chinese medicine for generations. The two most popular cordyceps species are cordyceps sinensis and cordyceps militaris, which total about 680 diff... View more

Coherent Market Insights Vitamin And Mineral Supplement Tablets Market

Published Date : Sep 2022

Vitamins and minerals are nutrients recommended to survive and stay healthy for adults. There are 13 essential vitamins — vitamins A, C, D, E, K, and the B vitamins (thiamine, riboflavin, niacin, pantothenic acid, biotin, B6, B12, and folate). Fat-soluble vitami... View more

Coherent Market Insights Beta Catenin Market

Published Date : Sep 2022

A protein called beta-catenin is crucial for growth and development of embryos. The CTNNB1 gene in humans encodes the protein catenin beta. It is a protein with two functions that is also known as beta-catenin 1 and is involved in the control and coordination of cells... View more

Coherent Market Insights Testosterone Booster Market

Published Date : Sep 2022

Testosterone boosters are supplementary substances that can be used for the purpose of increasing testosterone levels in the blood. Testosterone boosters may provide the following benefits to people with low testosterone levels: increase sex drive, improve sexual func... View more

Coherent Market Insights Hypoglycemic Drugs Market

Published Date : Sep 2022

Hypoglycemia is a condition in which blood sugar (glucose) level is lower than the standard range. Glucose is the main energy soiurce for the body. Hypoglycemia is often related to diabetes treatment. Hypoglycemia occurs when the level of glucose present in the blood ... View more

Coherent Market Insights Custom Antibody Service Market

Published Date : Sep 2022

Antibodies are produced by the immune system in response to invading pathogens. The invading bacteria, virus, or other foreign molecules are collectively called as antigens. Antibodies are proteins, or polypeptides which have specific antigen recognition sites. Antibo... View more

Coherent Market Insights Skin Fibrosis Treatment Market

Published Date : Sep 2022

Skin fibrosis generally occurs in patients who suffer from eosinophilia-myalgia syndrome, scleromyxedema (papular mucinosis) and scleredema. Fibrosis frequently develops as a result of continuous chemical exposure or trauma that causes epidermal or dermal harm. It is ... View more

Coherent Market Insights Metoprolol Tartrate Market

Published Date : Sep 2022

Metoprolol Tartrate is a selective β1 receptor blocker medication that is designed for the treatment of cardiovascular diseases and hypertension, as it works as slowing down the heart rate and makes the heart more efficient at pumping blood around the body. It is... View more

Coherent Market Insights Dermatomyositis Market

Published Date : Sep 2022

Dermatomyositis is a rare condition that causes muscle inflammation. It presents with symmetric proximal muscle weakness, skin rash, and extra macular manifestations such as esophageal dysfunction and interstitial lung disease. Dermatomyositis is strongly associated w... View more

Coherent Market Insights Latam Fabry Disease Market

Published Date : Sep 2022

Fabry disease is an inherited disorder which is caused by accumulation for globotriaosylceramide, a type of fat, in the body’s cells. Fabry disease symptoms affect body parts which include a decreased ability to sweat, events of pain in hands and feet, difficult... View more

Coherent Market Insights Over The Counter Drugs Market

Published Date : Sep 2022

Over-the-counter (OTC) drugs are medicines sold directly to a consumer without a requirement for a prescription (without a prescription) from the healthcare professional, as they are legally allowed to be sold by pharmacists without a prescription. When people follow ... View more

Coherent Market Insights Oral Thin Films Market

Published Date : Sep 2022

Oral thin films (OTFs) are polymeric films intended to deliver therapeutic moieties in the oral cavity or through gastrointestinal absorption. OTFs are the most advanced and promising new approaches for drug delivery as it offers more flexibility and comfort. Oral thi... View more

Coherent Market Insights Cytokine Market

Published Date : Sep 2022

Cytokines are a category of small proteins important in cell signaling. They are small proteins that are crucial in controlling the growth and activity of other immune system cells and blood cells. Cytokines affect the growth of all blood cells and other cells that he... View more

Coherent Market Insights Veterinary Tuberculosis Vaccine Market

Published Date : Sep 2022

Tuberculosis (TB) is considered a reemerging, infectious granulomatous disease in animals and people caused by acid-fast bacilli of the genus Mycobacterium. Although commonly considered as a chronic, debilitating disease, TB occasionally assumes an acute, rapidly prog... View more

Coherent Market Insights Us Medical Foods Market

Published Date : Sep 2022

A medical food is specifically formulated for patients, who require medical food as a major part of their dietary supplement during treatment. They are custom-made liquid solutions created with the sole purpose of curing persons suffering from various illnesses. Profe... View more

Coherent Market Insights Ivd Raw Materials Market

Published Date : Sep 2022

In vitro diagnostics can detect diseases/conditions, and can be used to monitor overall health to help cure, treat, and/or prevent diseases. In vitro diagnostics are utilized to diagnose a wide range of medical disorders, such as cardiovascular disease, cancer, diabet... View more

Coherent Market Insights Acute Bacterial Skin And Skin Structure Infections Absssi Market

Published Date : Sep 2022

Acute bacterial skin and skin structure infections is a collection of common types of infection including abscesses, cellulitis, and wound infections, which requires an immediate effective antibacterial treatment as part of a timely and careful management. ... View more

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