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.

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Pharmaceutical Published Insights

Coherent Market Insights Resveratrol Market

Published Date : Nov 2018

Resveratrol belongs to a class of polyphenolic compounds called stilbenes. Resveratrol can be derived from red grape skin, Japanese knotweed (polygonum cuspidatum, peanuts, blueberries and some other berries and have potential antioxidant activities. It causes the bod... View more

Coherent Market Insights Calciphylaxis Treatment Market

Published Date : Oct 2018

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Coherent Market Insights Halitosis Treatment Market

Published Date : Oct 2018

Halitosis originates from an oral or a non-oral source. It is caused by volatile molecules, which are developed due to pathological or non-pathological reasons. These volatile compounds are aromatic compounds, sulphur compounds, short-chain fatty acids, nitrogen-conta... View more

Coherent Market Insights Orthokeratology Market

Published Date : Oct 2018

Orthokeratology (Ortho-K) is a non-surgical procedure using specially designed contact lenses to gently reshape the curvature of the eye to improve vision. It is most frequently used to temporarily correct myopia (near-sightedness). Ortho-k can correct upwards of -6.0... View more

Coherent Market Insights Ranitidine Market

Published Date : Sep 2018

Ranitidine is a histamine type 2 (H2) receptor blocker drug available by prescription as well as over-the-counter (OTC). Ranitidine is used in treatment of intestinal & stomach ulcers, gastroesophageal reflux disease (GERD), and erosive esophagitis, and Zollinger-... View more

Coherent Market Insights Cetirizine Hydrochloride Market

Published Date : Aug 2018

Cetirizine hydrochloride is a second-generation histamine H1 antagonist that is effective in treatment of allergic rhinitis, chronic urticaria, and pollen-induced asthma. Cetirizine does not cause drowsiness or anticholinergic side effects opposed to conventional antihistamines. Cetirizine is ava... View more

Coherent Market Insights Tylosin Market

Published Date : Aug 2018

Tylosin is used in livestock for various purposes such as a feed additive for growth promotion and as an antibiotic against infectious diseases in animals such as chickens, turkeys, felines, canines, pigs, calves, and others. These antibiotics aid in the treatment of ... View more

Coherent Market Insights Respiratory Tract Infection Treatment Market

Published Date : Aug 2018

Respiratory tract infection is any infection in the nose, sinuses around the nose, throat (pharynx), voice box (larynx), and windpipe (trachea), airways (bronchi) or lungs, which may occur anytime, usually beginning with cold. This infection is usually caused by bacteria and viruses. Virus prone ... View more

Coherent Market Insights Rivaroxaban Market

Published Date : Jul 2018

Rivaroxaban is an anti-coagulant medication marketed under the brand name Xarelto by Janssen Pharmaceuticals Inc., a subsidiary of Johnson & Johnson. The report segments the rivaroxaban market based on strength of the drug, application, distribution channel, and r... View more

Coherent Market Insights Triptorelin Market

Published Date : Jul 2018

Triptorelin is a peptide formulation for injection that was developed mainly for the treatment of advanced metastatic prostate cancer. Furthermore, other indications developed subsequently include the treatment of uterine fibroids (a benign tumor of muscle tissues in ... View more

Coherent Market Insights Premature Ejaculation Treatment Market

Published Date : Jul 2018

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Coherent Market Insights Ursodeoxycholic Acid Market

Published Date : Jun 2018

Ursodeoxycholic acid (UDCA) is a naturally occurring bile acid and is used for dissolving gallstones that are rich in cholesterol. It is also used to improve the flow of bile in primary biliary cirrhosis. UDCA solubilizes cholesterol gallstones, and improves liver fun... View more

Coherent Market Insights Clinical Trial Supply And Logistics Market

Published Date : Jun 2018

Continuous emphasis by the manufacturers towards balancing shipment and supply costs, optimizing production and packaging and minimizing overage and avoiding shortages, are propelling the demand for efficient solutions fo... View more

Coherent Market Insights Botanical And Plant Derived Drugs Market

Published Date : Jun 2018

Botanical and plant derived drugs contain active ingredients derived from plants. The botanical drug is a mixture of plant materials that include whole plant, part of plants, fungi or algae. Plants have been used as a source of medicine since past, owing to side effec... View more

Coherent Market Insights Chagas Disease Treatment Market

Published Date : May 2018

Chagas disease is a tropical parasitic disease and is endemic in 21 countries in Latin America. Chagas disease can transmitted through blood transfusion, organ transplantation, as well as congenital and oral transmissions. Chagas disease is endemic to Latin America, h... View more

Coherent Market Insights Disease Control And Prevention Vaccine Market

Published Date : Apr 2018

Vaccines are the biological preparation used for stimulating antibody production to activate immune system against diseases such as influenza, Hepatitis A, Hepatitis B, Human Papillomavirus, Polio, and Rabies. High prevalence of infectious disease and increasing gover... View more

Coherent Market Insights Alzheimers Drugs Market

Published Date : Mar 2018

The Alzheimer’s disease is one of the most prevalent neurodegenerative disease, which is associated proportionately with increased life expectancy worldwide. Patient suffers and encounters various behavioral change with dementia, as a primary symptoms, which get... View more

Coherent Market Insights Acute Otitis Media Treatment Market

Published Date : Feb 2018

Acute otitis media (AOM) is inflammation of the fluid in the middle ear. AOM is the most common infection and mainly caused in children under the age of 7 years. According to an article published American Family Physician Journal in 2013, around 80% of children will h... View more

Coherent Market Insights Multiple Sclerosis Therapeutics Market

Published Date : Feb 2018

The multiple sclerosis therapeutic agents are intended to promote neurorepair and neuroprotection to prevent disease progression. The disease modifying therapeutics are currently under clinical development to specifically target the disease while avoiding frequent the... View more

Coherent Market Insights Pet Cancer Therapeutics Market

Published Date : Feb 2018

The pet cancer therapeutics include chemotherapy drugs, targeted therapies, combination therapies, and immunotherapy vaccines, which are commonly recommended by the veterinary doctors. The drugs are mostly recommended to treat various conditions such as lymphoma, mast... View more

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