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:
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.
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.
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.
U.S. Compounding Pharmacies Market — Insights A pharmacy that is operated by a licensed pharmacist, licensed physician or a person under the guidance of a licensed pharmacist is called compounding pharm... Read more
Italy Peptide Receptor Radionuclide Therapy (PRRT) Market – Insights The market opportunities for key players to enter into this market are high owing to less competition and increasing demand for pepti... Read more
Gout Disease Treatment Market Insights Gout is the condition that is characterized by formation of excess of uric acid in body tissues that results in the formation of crystals of monosodium urate. Symptoms o... Read more
Global PARP (Poly ADP-Ribose Polymerase) Inhibitor Market – Market Insights Poly ADP-Ribose Polymerase (PARP) inhibitors are long chain containing 17 enzymes that combine several (poly) units of ADP-rib... Read more
Esophageal Cancer Drugs Market – Insights Esophageal cancer drugs are extensively used in the treatment of esophageal adenocarcinoma, squamous cell carcinoma, and others types. More men are affected by ... Read more
Antiseptic Market – Insights An antiseptic is a substance that kills or hampers growth of harmful microorganisms. These are used in hospitals and other medical settings to reduce the risk of infection d... Read more
Middle East and Africa Animal Healthcare Market – Increasing Demand for Protein from Animal Source Animal healthcare focuses on effective animal health management by diagnosing ... Read more
Bioactive Peptide Market – Market Insight Bioactive peptides are amino acids combined together through a covalent bond. Bioactive peptides are extracted from various natural sources, thereby providing a... Read more
Veterinary Oncology Market– Insights Veterinary cancer therapies aim to permanently eradicate the cancerous cells prevalent in pets. The veterinarian recommends specific treatments such as targeted ther... Read more
Hepatitis Drugs Market – Insights Hepatitis B is a viral infection that affects the liver and leads to acute and chronic liver disorder. According to World Health Organization (WHO) 2018, it is estimated that about 780,000 people d... Read more
Cannabis Testing Service Market – Insights The development of therapies derived from cannabis and its components is increasing in the recent past. Robust research and development activities are conducte... Read more
U.S. Sucralfate Market – Market Insights Sucralfate is the generic form of the brand-name drug, Carafate. It is a prescription medicine used to treat ulcers of the upper gastrointestinal tract, peptic ulcer di... Read more
Global Lyophilized Drugs Market Insights Lyophilization of the sterile injectable is necessary to maintain the stability of some unstable bulk ingredients. Lyophilization provides long... Read more
Global Cephalosporin Drugs Market – Insights Cephalosporin is a large group of antibiotics that belongs to a class known as beta-lactams. Cephalosporin is a wide spectrum bactericidal antibiotic used fo... Read more
Global Outsourced Drug Discovery Market Insights Outsourcing is a strategy, by which a pharmaceutical company hires another company such as contract research organization for planned and existing activities including drug discovery, prec... Read more
Hemoglobinopathy Market – Insights Hemoglobinopathy a group of hereditary blood disorders involving an abnormality in the structure of hemoglobin. . These disorders include both sickle cell disease (SCD) an... Read more
Regulatory Affairs Outsourcing Market – Insights Regulatory affairs outsourcing are the services utilized by the pharmaceutical, biotech and medical devices manufacturing companies for gaining fast regu... Read more
Angiotensin Converting Enzymes (ACE) Inhibitors Market Insights Angiotensin converting enzymes inhibitors are used to for the treatment of various medical conditions such as hypertension, coronary artery dise... Read more