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 Compounding Pharmacies Market

Published Date : Sep 2022

Compounded medications are prepared by compounding pharmacies to meet the needs of unique patients whose conditions cannot be treated by commercially accessible medications. The process of combining, blending, or changing substances to make a treatment specific to the... View more

Coherent Market Insights Sterile Powder Filling Machine Market

Published Date : Sep 2022

Sterile powder filling machine are designed to fill powder injection vials uses in pharmaceuticals. Sterile powder filling machine is the instrument which can do filling and stoppering operations on same platform. All parts of this machine are made from stainless stee... View more

Coherent Market Insights Veterinary Oncology Market

Published Date : Sep 2022

Veterinary oncology is subspecialty of veterinary medicine that deals with the diagnosis and treatment of cancer in animals. With emerging technologies, the use of biotechnology products in veterinary medicines is increasing. Despite the costs that many times accompan... View more

Coherent Market Insights Bioactive Peptide Market

Published Date : Sep 2022

Bioactive peptides are a group of biological molecules that are normally buried in the structure of parent proteins and become active after the cleavage of the proteins. Another group of peptides is actively produced and found in many microorganisms. Many groups of bi... View more

Coherent Market Insights Small Molecule Drug Discovery Market

Published Date : Sep 2022

Small molecule drugs have represented some of the crucial blockbusters in the history of the pharmaceutical industry. Defined as any organic compound with low molecular weight, small molecule drugs have some distinct advantages as therapeutics. Small molecule drugs ca... View more

Coherent Market Insights Sjogrens Syndrome Market

Published Date : Sep 2022

Sjogren’s syndrome is systematic autoimmune disorder which effect the entire body, along with complication such as, chronic pain, major organ involvement, profound fatigue, neuropathies and Sjogren’s syndrome zmphomas. ... View more

Coherent Market Insights Budesonide Inhaler Market

Published Date : Sep 2022

Budesonide is an artificial glucocorticoid steroid related to the naturally-occurring hormone, cortisol or hydrocortisone, which is produced in the adrenal glands. It is used for treating asthma. Budesonide is sold under the brand name Pulmicort. Each budesonide inhal... View more

Coherent Market Insights Chronic Obstructive Pulmonary Disease Copd Treatment Market

Published Date : Sep 2022

Chronic obstructive pulmonary disease (COPD) involves lung inflammation, causing obstruction of airflow from the lungs. It is a chronic disease and its symptoms include difficulty in breathing, mucus formation, wheezing, and others. COPD is a progressive lung disease,... View more

Coherent Market Insights Human Tuberculosis Vaccine Market

Published Date : Sep 2022

Mycobacterium tuberculosis is the bacteria that causes tuberculosis. TB germs are most commonly found in the lungs, although they can also be found in the kidney, spine, and brain. Latent tuberculosis infection (LTBI) and tuberculosis illness are two TB-related diseas... View more

Coherent Market Insights Osteoarthritis Drugs Market

Published Date : Sep 2022

Osteoporosis is a systemic disorder characterized by decreased bone mass and microarchitectural deterioration of bone tissue, leading to bone fragility and increased susceptibility to fractures of the hip, spine, and wrist. Due to its important prevalence worldwide, o... View more

Coherent Market Insights Treatment Resistant Depression Market

Published Date : Sep 2022

Depression is a mood disorder that causes a persistent feeling of sadness and a loss of interest. Also called major depressive disorder or clinical depression, it affects how patients feel, think, and behave and can lead to a variety of emotional and physical problems... View more

Coherent Market Insights Mometasone Furoate Market

Published Date : Sep 2022

Mometasone furoate topical is effective at reducing the redness, itching, swelling, and other pain caused by several skin conditions. Mometasone furoate is a corticosteroid drug also used to treat asthma and it is an effective treatment for a variety of skin... View more

Coherent Market Insights Monkeypox Treatment Market

Published Date : Sep 2022

A rare condition known as monkeypox is brought on by infection with the monkeypox virus. The smallpox virus and the monkeypox virus both belong to the same virus family. Monkey pox, however, is not as contagious as smallpox. Additionally, the illness has lesser sympto... View more

Coherent Market Insights Pulmonary Arterial Hypertension Pah Market

Published Date : Aug 2022

Pulmonary arterial hypertension is a rare disease caused by many factors, such as congestive heart failure, liver disease, autoimmune diseases, such as lupus, scleroderma, rheumatoid arthritis, etc. The pulmonary artery is a blood vessel that carries blood from the ri... View more

Coherent Market Insights Pediatric Antibiotics Market

Published Date : Aug 2022

Antibiotics are used to treat or prevent some types of bacterial infection. Antibiotics work by killing bacteria or preventing them from reproducing and spreading. Antibiotics are the most commonly prescribed drugs in children and have the potential to save the lives ... View more

Coherent Market Insights Prebiotics For Dietary Supplements Market

Published Date : Aug 2022

Prebiotic ingredients are beneficial for treatment of inflammatory bowel disease, diarrhea, colon cancer, for calcium absorption, and to maintain bone health, skin health, immunity, and obesity. Awareness about prebiotics has gained popularity in recent years, stimula... View more

Coherent Market Insights Nephroblastoma Treatment Market

Published Date : Aug 2022

Nephroblastoma, also known as Wilms tumor, is the most prevalent kind of renal cancer among pediatrics. Although the exact cause of Wilms tumor is unknown, genetic changes related to the normal embryological development of the genitourinary tract are thought to be to ... View more

Coherent Market Insights Endocrine Therapy Drugs Market

Published Date : Aug 2022

The endocrine system of the human body uses hormones to control and coordinate with the human body’s metabolism, reproduction, energy level, growth and development, as well as response for stress, injury, and mood disorders. Endocrine therapy, also known as horm... View more

Coherent Market Insights Nasal Polyps Treatment Market

Published Date : Aug 2022

Nasal polyps develop in swollen tissue of the nasal mucosa. The mucosa is a very wet layer that protects the inside of nose and sinuses. During a contamination or allergy-induced irritation, the nasal mucosa becomes swollen and red, and it produces liquid that drips o... View more

Coherent Market Insights Actinic Keratosis Market

Published Date : Aug 2022

Actinic Keratosis (AK) is the most common pre-cancer that forms on skin damaged by chronic exposure to ultraviolet (UV) rays from the sun. Actinic Keratosis is also known as solar keratosis. Actinic keratosis forms like a patch on the skin. The patches usually appear ... View more

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