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.
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.
Neuropathic Pain Market – Insights Neuropathic pain is a complex, chronic pain state that usually is accompanied by tissue injury. It may lead to damage, dysfunction, or injury of nerve fibers, thereby lead... Read more
Lysosomal Storage Diseases Therapeutics Market – Insights Lysosomal storage diseases (LSDs) are a group of rare inherited metabolic disorders that result from defects in lysosomal function. The absence of l... Read more
Colonoscopy Bowel Preparation Drugs Market – Market Insights Colonoscopy is an important screening test for detecting colorectal cancer. Colonoscopy is dependent on pre-procedure called as colonoscopy... Read more
Dysphagia Management Market – Insights Dysphagia is characterized by difficulty in swallowing foods or liquids. Causes of the disease include, large bites of food, inadequate chewing, dry mouth, pills, or c... Read more
Diabetic Gastroparesis Treatment Market – Insights Diabetic gastroparesis is delayed gastric emptying associated with diabetes. The condition occurs in patients suffering from both type-1 and type- 2 diabet... Read more
India Intravenous Anesthetic Market– Insights India is one of the highest populated countries in the world. The increasing geriatric population, changing lifestyle, and rising number of chronic diseas... Read more
Saudi Arabia pharmaceutical drugs market includes medicinal products sold as patented/prescription and OTC products for various ailments in hospitals and retail pharmacies. Patented products are available as branded drugs and generic drugs include both branded generic... Read more
Europe Pharmaceutical Drugs Market Pharmaceutical drugs are used for treatment of chronic and acute diseases. There are two types of pharmaceutical drugs, generic and branded, which are sold through prescript... Read more
Brazil Enteral Nutrition Market – Market Insight Nutrition is one of the most vital elements needed for maintaining health and managing and preventing various diseases. Nutriti... Read more
U.S. Ambulatory Surgery Centers Market – Insights U.S ambulatory surgery centers market growth is attributed to advantages offered by ambulatory surgical centers in the U.S. Ambu... Read more
Hypercalcemia Treatment Market – Insights Hypercalcemia is characterized by increased level of calcium in the blood. The condition can be life-threatening and is associated with neoplastic diseases. Hypocal... Read more
Halal Nutraceuticals & Vaccines Market – Insights Halal pharmaceuticals are defined as products, which are manufactured using Shariah law and contain ingredients that are compliant by the Islamic religi... Read more
Weight Loss and Obesity Management Market – Market Insights Obesity is defined as excess body fat accumulation. The major factors contributing to obesity throughout the world are diseases and adoption... Read more
U.S. Intravenous Solutions Market – Insights Intravenous solutions (IV) are administered to patients to transfer sugar, salt and water directly into venous circulation. IV solutions and electrolytes a... Read more
Branded Generics Market – Insights A branded generic is a generic drug that has gone through the Abbreviated New Drug Application (ANDA) process, and is assigned a name other than the chemical name. Branded... Read more
Companion animal vaccines play a crucial role in ensuring longevity, good health and in improving overall productivity of pets in a cost-effective manner. Companion animal vaccines reduce transmission of various diseases from animals to humans. Companion animal vaccin... Read more
Cold, Cough, and Sore Throat Remedies Market – Insights Common cold spread from person to person through various medium such as cough droplets, sneezes, and mucus in hand. Common factors that cause co... Read more
Sexual Health Market Insights Physical or psychological factors both can result into sexual dysfunction. In most cases issues with sexual health result from a combination of physical and psychological facto... Read more