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 Acute Vulvovaginal Candidiasis Treatment Market

Published Date : Dec 2020

Acute vulvovaginal candidiasis is a yeast infection, which affects the vagina and tissues present at the opening of the vulva. It is caused by fungus Candida species. The symptoms for the infection are intense itchiness, inflammation, thick, white discharge, and other... View more

Coherent Market Insights Androgenetic Alopecia Treatment Market

Published Date : Dec 2020

Androgenetic alopecia, a slow progressive form of alopecia, begins after the onset of puberty. Pattern or androgenetic alopecia is a genetically predetermined disorder due to excessive response to androgens that affects up to 50% of males and females globally, accordi... View more

Coherent Market Insights Pyrazinamide Market

Published Date : Dec 2020

Pyrazinamide (PZA) is a medication used to treat tuberculosis. Moreover, for active tuberculosis, it is often used with rifampicin, isoniazid, and either streptomycin or ethambutol. It is not generally recommended for the treatment of latent tuberculosis. Pyrazin... View more

Coherent Market Insights Coronavirus Treatment Drugs Market

Published Date : Dec 2020

The coronavirus treatment drugs comprises therapeutics which are used for treatment of the novel coronavirus. There are various drug classes such as corticosteroids, anti-viral, monoclonal antibodies, Kinase inhibitors which can be used for treatment of the coronaviru... View more

Coherent Market Insights Idiopathic Hypersomnia Treatment Market

Published Date : Dec 2020

Idiopathic hypersomnia is a rare sleep disease that causes a person to be excessively sleepy during the day even after a good or prolonged night's sleep. It also causes difficulty in waking up among patients after a night sleep or a nap. Moreover, narcolepsy and idiop... View more

Coherent Market Insights Chronic Gingivostomatitis Treatment Market

Published Date : Dec 2020

Gingivostomatitis is a contagious mouth infection, which causes painful sores, blisters, and swelling in the tongue and uvula. It usually spreads through the saliva of an infected individual or by direct contact with a lesion or sore. Gingivostomatitis is also called ... View more

Coherent Market Insights Cutaneous Squamous Cell Carcinoma Treatment Market

Published Date : Dec 2020

Cutaneous squamous cell carcinoma (cSCC) is a common type of skin cancer grouped in the class of keratinocyte cancer, or non-melanoma skin cancer. It is derived from cells within the epidermis that make keratin, the protein which makes up skin, hair, and nails. Cutane... View more

Coherent Market Insights Health Supplementary Foods Oem And Odm Market

Published Date : Nov 2020

Health supplementary foods are the ingredients or elements, which add nutrients to the diet. Such supplements lower the risk of health problems such as osteoporosis or arthritis, intestinal diseases, diabetes, chronic kidney disease, and others. For instance, accordin... View more

Coherent Market Insights Progressive Supranuclear Palsy Treatment Market

Published Date : Nov 2020

Progressive supranuclear palsy (PSP) is a neurodegenerative disease alike Parkinson's disease. The disease results from damage to nerve cells in the brain. One of the common symptomof the disease include inability to aim and move the eyes properly, where individuals m... View more

Coherent Market Insights North America And Europe Acute Bacterial Skin And Skin Structure Infections Market

Published Date : Nov 2020

Acute bacterial skin and skin structure infections (ABSSSI) are the skin and soft tissue infections that affect the epidermis, dermis, and subcutaneous tissues. The U.S. FDA defines ABSSSI as lesions with cellulitis/erysipelas, wound infections, and major cutaneous ab... View more

Coherent Market Insights Methicillin Resistant Staphylococcus Aureus Mrsa Drugs Market

Published Date : Nov 2020

Methicillin-resistant staphylococcus aureus (MRSA) is an infection of the skin that occurs mostly in hospitals and healthcare facilities. It is treated with commonly used antibiotics and usually spreads from person to person by direct skin-to-skin contact. Physicians ... View more

Coherent Market Insights Vaginal Fungi Infections Treatment Market

Published Date : Nov 2020

A vaginal yeast infection is a fungal infection that causes irritation, discharge, and intense itchiness of the vagina and the vulva — the tissues at the vaginal opening. Vaginal fungi infection is also known as vaginal yeast infection, vulvovaginal candidiasis,... View more

Coherent Market Insights Community Acquired Bacterial Pneumonia Treatment Drugs Market

Published Date : Nov 2020

Community-acquired bacterial pneumonia (CABP) is most common acute respiratory illnesses among various infections triggering sepsis. Microbiologically, bacteria are common agents causing pneumonia, with Streptococcus pneumoniae being the most common cause wor... View more

Coherent Market Insights Gm1 Gangliosidosis Treatment Market

Published Date : Nov 2020

GM1 gangliosidosis is a progressive neurological genetic disorder mainly caused by the absence of a vital enzyme known as beta-galactosidase (GLB1). Without GLB1, a fatty substance called GM1 gangliosidosis accumulates in cells, and nerve cells of the brain. GM1 gangl... View more

Coherent Market Insights Plasma Protease C1 Inhibitor Treatment Market

Published Date : Nov 2020

C1-inhibitor (C1-H) belongs to the superfamily of serine protease inhibitors. C1-inhibitors controls the activation of the C1 complex. It forms a proteolytically inactive stoichiometric complex with the C1r or C1s proteases. It also plays an important role in regulati... View more

Coherent Market Insights Herceptin Biosimilar Market

Published Date : Oct 2020

Trastuzumab, sold under the brand Herceptin, is a monoclonal antibody used for the treatment of breast cancer and gastric cancer. Herceptin is mainly used to treat patients suffering from cancer and diagnosed with HER2 receptor positive. Herceptin mechanism of action ... View more

Coherent Market Insights Benzocaine Market

Published Date : Oct 2020

Benzocaine is a benzoate ester having 4-aminobenzoic acid as the acid component and ethanol as the alcohol component. Benzocaine is a local anesthetic and is used to suppress the gag reflux, used as lubricant and topical anesthetic on mouth, nasal cavity, respiratory ... View more

Coherent Market Insights Braf Kinase Inhibitors Market

Published Date : Oct 2020

BRAF is a kinase enzyme that helps control cell growth and signalling. It may be found in a mutated (changed) form in some types of cancer, including melanoma and colorectal cancer. Blocking mutated BRAF kinase proteins may help keep cancer cells from growing. Some BR... View more

Coherent Market Insights Dextrose Injection Market

Published Date : Oct 2020

Dextrose injection contain source of water and calories, and is capable of inducing diuresis depending on the clinical condition of the patient. Dextrose injections are sterile, non-pyrogenic, and does not contain bacteriostatic or antimicrobial agents. It is intended... View more

Coherent Market Insights Proton Pump Inhibitors Market

Published Date : Oct 2020

The global proton pump inhibitor market includes various drugs which are prescribed by healthcare professionals for treatments related to various gastrointestinal disorders such as duodenal ulcers, peptic ulcers, NSAIDS induced ulcers, and gasteroesophageal reflux dis... View more

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