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.
Fungal otitis externa is a condition that causes inflammation (redness and swelling) of the external ear canal. Fungal otitis externa is often referred to as swimmer's ear, as repeated exposure to water can make the ear canal more vulnerable to inflammation. The most ... View more
Central nervous system (CNS) diseases include various infections (meningitis and encephalitis), structural impairment (brain or spinal injury), vascular issues (stroke and other hemorrhages), functional issues (epilepsy and migraines), and neurodegenerative conditions... View more
An immunodeficiency disease is caused when the immune system of the body fails to carry out its regular function of providing protection from various pathogens such as virus, bacteria, fungus, parasites, and others. These immunodeficiency diseases can be classified in... View more
Polycythemia vera is a rare, chronic disorder involving the overproduction of blood cells in the bone marrow (myeloproliferation). The overproduction of red blood cells is most changing, but the production of white blood cells and platelets are also elevated in most c... View more
Genital warts refer to sexually transmitted infection that are usually caused due to Human Papilloma Virus (HPV). HPV is also known to cause some types of cancer as well. However, the type of HPV that causes genital warts does not usually cause cancer. Moreover,... View more
Castration-resistant prostate cancer (CRPC) is a form of advanced prostate cancer. The cancer in CRPC no longer responds to hormonal therapy, which include testosterone-lowering treatments. Hormone therapy, also known as androgen deprivation therapy (ADT), reduces tes... View more
Biodefense refers to the use of medical or military measures to protect individuals from bioterrorism, including interventions such as drugs and vaccinations, as well as research and public health preparations to counter biological attacks. To prevent the use of dange... View more
Animal disinfectants help in killing fungi, bacteria, viruses, and other pathogens in animal veterinary clinics and livestock production premises, and protect animals from the risk of infection as well as prevent the transmission of diseases to humans. ... View more
Rising public awareness about myelodysplastic syndromes (MDS) and its early diagnosis and availability of new treatment options for MDS are expected to drive growth of the market over the forecast period. Moreover, early diagnosis of MDS is important because it signif... View more
Burns refer to the tissue damage caused by heat, overexposure to sunlight, radiation, as well as due to chemical or electrical contact. Burns can cause minor medical issues as well as life-threatening emergencies. The treatment for burns is determined by the location ... View more
Medical nutrition plays an important role in the management of certain chronic conditions such as diabetes, obesity, constipation, malabsorption, maldigestion, etc. It also helps to maintain healthy lifestyle, improve appetite and food intake, lower the risk of nutrie... View more
Sickle cell disease is a group of disorders that affects hemoglobin, and the molecule in red blood cells that delivers oxygen to cells throughout the human body. People with this disease have atypical hemoglobin molecules called hemoglobin S, which can distort the bic... View more
Prurigo nodularis is skin condition characterized by itchy firm lumps on the skin. It affects people from all ages but mainly adults aged 20-60 (males and females). It has been associated with diseases including iron deficiency anemia, chronic renal failure, gluten en... View more
Liposomal doxorubicin is a chemotherapy drug, which is administered intravenously to treat AIDS-related Kaposi's sarcoma, breast cancer, ovarian cancer, and other solid tumors. Liposome drug delivery systems are able to modify pharmacokinetics and bio-distribution of ... View more
Interstitial cystitis (IC) is a prolonged condition that causes bladder pressure, pain, and, in some cases, pelvic pain. The symptoms of interstitial cystitis may cause an impact on one’s social life, physical activity, sleep, and even on the ability to work. Th... View more
Acute ischemic stroke (AIS) occurs when blood flow through a brain artery is obstructed by a clot, which is a thickened mass of blood. Clots are classified as either thrombotic or embolic depending on where they form in the body. The most common type of stroke is a th... View more
According to the Journal of American Pharmacist Association: August 17, 2020, 'Pharmacy compounding describes the act of combining, mixing, or altering of the ingredients of a drug to create a new medication according to the needs of an individual patient'. Compoundin... View more
In the field of pharmacy, compounding is preparation of a custom formulation of a medication to fit a unique need of a patient such as medicine dose, which cannot be met with commercially available pharmaceutical products. In the U.S., conventional compounding pharmac... View more