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.


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.

View More

Pharmaceutical Published Insights

Coherent Market Insights Vaccine Adjuvant Market

Published Date : Jan 2023

An adjuvant is a vaccine component that boosts the immune response to the vaccine. An adjuvant is used to create a stronger immune response in people receiving the vaccine. In short, adjuvants help vaccines work better. Newer adjuvants have been developed to target sp... View more

Coherent Market Insights Diabetes Nutrition Market

Published Date : Jan 2023

Nutrition and physical activities are the most important aspects for a healthy lifestyle for a diabetic person. A high diet in fat, calories, and cholesterol increases risk of diabetes and a poor diet can lead to obesity which is the other risk factor for diabetes and... View more

Coherent Market Insights Glycopeptide Antibiotics Market

Published Date : Jan 2023

Glycopeptide antibiotics are the type of antibiotics that inhibit bacterial cell wall formation by inhibiting peptidoglycan synthesis. Glycopeptide antibiotics are used for the treatment of Clostridium difficile-associated diarrhea, endocarditis, enterocolitis Pneumon... View more

Coherent Market Insights Niemann Pick Disease Type C Treatment Market

Published Date : Dec 2022

Niemann-Pick Type C (NPC) is a rare inherited disease. This type of genetic mutation causes cholesterol and other fats to build up in the liver, spleen, or lungs. It has an impact on the brain as well. The onset of symptoms for NPC may begin at different ages. It has ... View more

Coherent Market Insights Desmoid Tumors Market

Published Date : Dec 2022

A desmoid tumor is an abnormal growth that arises from connective tissue, which is the tissue that provides strength and flexibility to structures such as bones, ligaments, and muscles. Desmoid tumors are fibrous, much like scar tissue. They are generally not consider... View more

Coherent Market Insights Lidocaine Ointment Market

Published Date : Dec 2022

Topical lidocaine ointment is used on various parts of the body to cause loss of sensation in patients undergoing certain medical procedures, such as surgery. It is also used to relieve pain and itching caused by conditions such as sun burn, poison ivy, poison oak, mi... View more

Coherent Market Insights Dry Eye Syndrome Treatment Market

Published Date : Dec 2022

Dry eye syndrome (DES) is also known as keratisis sicca and keratoconjunctivitis sicca. Dry eye disease is a common condition that occurs when your tears aren't able to provide adequate lubrication for your eyes. Patients suffering from DES show damage to the ocular s... View more

Coherent Market Insights Post Traumatic Stress Disorder Treatment Market

Published Date : Dec 2022

Post-traumatic stress disorder (PTSD) is a psychiatric condition that may occur in people who have witnessed a traumatic shock like natural disaster, a life threatening event, car accident, sexual abuse etc. Symptoms of PTSD may generate after three months or even aft... View more

Coherent Market Insights Vitamin B12 Drops Market

Published Date : Dec 2022

Vitamin B12, also known as cobalamin, is a water-soluble vitamin involved in metabolism. It is one of eight B vitamins. It is required by animals, which use it as a cofactor in DNA synthesis, in both fatty acid and amino acid metabolism. ... View more

Coherent Market Insights U S Neuropathic Pain Treatment Market

Published Date : Dec 2022

Neuropathic pain can be a symptom or a side effect of a variety of diseases and ailments. These include different cancers and conditions such as multiple sclerosis and multiple myeloma. The nervous system may be impacted by chronic diabetes. Diabetes patients frequent... View more

Coherent Market Insights Plexiform Neurofibromas Treatment Market

Published Date : Dec 2022

Plexiform neurofibromas is an uncommon variant of neurofibromatosis type 1 that arises from multiple nerves as bulging and deforming masses involving also connective tissue and skin folds. Neurofibromatosis is a genetic neurological disorder which can affect the skin,... View more

Coherent Market Insights Onychomycosis Treatment Market

Published Date : Dec 2022

Onychomycosis is a fungal infection of the toenails or fingernails that may involve any component of the nail unit. For treatment, drugs remain the first-line treatment choice owing to a consistently high success rate. A newer generation of oral antifungal agents (itr... View more

Coherent Market Insights Veterinary Healthcare Market

Published Date : Dec 2022

Veterinary healthcare focuses on effective animal health management by diagnosing and treating diseases. It is a medical specialty concerned with the prevention, diagnosis, control, and treatment of diseases affecting the health of domestic and wild animals, as well a... View more

Coherent Market Insights Memory Enhancement Drugs Market

Published Date : Dec 2022

Drugs that improve memory are used to treat people who have memory loss as a result of age or traumatic injury to the central nervous system (CNS). Alzheimer's disease may begin as a result of the onset of memory loss or a decline in cognition. Brain cells frequently ... View more

Coherent Market Insights Injectable Drugs Market

Published Date : Dec 2022

Drug injection is a method of introducing a drug into the bloodstream via a syringe and needle. Injectable drugs are used to treat wide variety of diseases and disorders. The method improves the speed and effectiveness of drugs to the target. Drug delivery using injec... View more

Coherent Market Insights Lactobacillus Acidophilus Probiotics Market

Published Date : Nov 2022

Probiotics are live microorganisms that are intended to have health benefits when consumed or applied to the body. They can be found in yogurt and other fermented foods, dietary supplements, and beauty products. Although people often think of bacteria and other microo... View more

Coherent Market Insights China Mesalazine Market

Published Date : Nov 2022

Mesalazine is used to treat ulcerative colitis and Crohn's disease and other types of inflammatory bowel disease. Mesalazine is also known as mesalamine or 5-aminosalicylic acid (5-ASA). It belongs to a group of medicines called aminosalicylates that help to reduce re... View more

Coherent Market Insights Omega 3 Gummies Market

Published Date : Nov 2022

Omega-3 fatty acids are a type of fat that cannot be produced by the body. Fish is the best dietary source of omega-3 fatty acids. Some plants also contain omega-3 fatty acids. There are two types of omega-3 fatty acids found in fish, eicosapentaenoic acid (EPA) and d... View more

Coherent Market Insights Sodium Selenite Market

Published Date : Nov 2022

Sodium selenite appears as a crystalline solid with a white tint. Contact with sodium selenite may irritate mucous membranes, eyes, and skin. It is toxic when ingested, inhaled, or absorbed through the skin. A 2:1 ratio of sodium and selenite ions make ... View more

Coherent Market Insights Eye Inflammation Treatment Market

Published Date : Nov 2022

Eye inflammation, also known as ocular inflammation, is a disorder marked by the swelling of one or more eye regions and can be brought on by a number of different things, from minor irritation to specific illnesses. Eye Inflammation is classified according to the par... View more

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