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.
Global Vitiligo Drugs Market – Market Insights Vitiligo is a skin condition characterized by white patches on the skin. It is also known as skin depigmentation. In skin depigmentation, the skin's pigmen... Read more
Global Elderly Nutrition Market – Novel Approach for Elder Patients Elderly nutrition plays a major role in advance healthcare in geriatric segment, as it support healthy aging and prevents malnutrition... Read more
Cough Suppressant Drugs Market- Insights A cough is a very common symptom of various upper and lower respiratory tract infections. It is a reflex response to mechanical, chemical, or inflammatory irritation o... Read more
A Small molecule Active Pharmaceutical Ingredient (API) is a low molecular weight organic compound, which may help to control biological process, with a size on the order of 1 nm. Most of the small molecule can be administered orally and are most likely... Read more
Global Epinephrine Market – Adrenaline Rush to Treat Severe Attacks Epinephrine also called as adrenaline is a hormone and neurotransmitter produced by the adrenal glands. Epinephrine helps to reverse t... Read more
Kidney Cancer Drugs Market - Insights Kidney cancer or renal carcinoma affects kidney cells to grow out of control and restrict the function of normal cells. Several risk factors associated with kidney cancer... Read more
Contract Pharmaceutical Manufacturing Market - Insights Contract pharmaceutical manufacturing organizations are engaged in conducting various kinds of drug production and research activities for different pha... Read more
Global Acetazolamide Market – Global Industry Insights Acetazolamide is carbonic anhydrase inhibitor, used in adjuvant treatment of chronic simple (open-angle) glaucoma, secondary glaucoma, and preopera... Read more
Global Omeprazole Market – Managing Acidity Omeprazole is a commonly prescribed proton pump inhibitor (PPI) to reduce acidity. The drug is approved by the regulatory agencies for the treatment of heart... Read more
Oncology Drugs Market Insights – Cancer can be cured Cancer is a class of chronic disease that is characterized by uncontrolled growth of cells. The most common cancer types are breast cancer, lung cancer, colorectal cancer, uterin... Read more
Childhood Absence Epilepsy Treatment Market - Insights Absence seizures (previously known as petit-mal) are commonly found in children than in adults with frequent occurrence. The seizures of childhood absenc... Read more
Veterinary Antibiotics Market – Insights Veterinary antibiotics combat infections caused by bacteria. Antibiotics are used for a variety of purposes in the farming of livestock, including therapeutic an... Read more
Liver Fibrosis Treatment Market - Insights Liver fibrosis is characterized by repeated or continuous damage to liver resulting in an abnormally large amount of scar tissue in the liver. Fibrosis does not show... Read more
Ciclesonide Market - Insights Ciclesonide, are used to prevent the difficulty in breathing, chest tightness, wheezing, and coughing caused by asthma in adults and children 12 years of age and older. It works as a being class of corticost... Read more
Nonalcoholic Steatohepatitis Treatment Market – Insights Nonalcoholic steatohepatitis (NASH) is a form of nonalcoholic fatty liver disease (NAFLD) in which a person have hepatitis and inflammation of th... Read more
Resveratrol Market - Insights Resveratrol is a flavonol belonging to the group of flavonoids. It is a phytoalexin synthesized naturally by various plants when attacked by various pathogens such as bacteria or... Read more
Calciphylaxis Treatment Market – Insights Calciphylaxis or Calcific Uremic Arteriolopathy (CUA) is the most severe form of cardiovascular calcification in dialysis patients. It starts with a calcificati... Read more
Halitosis Treatment Market – Insights Halitosis or bad breath is a common problem that can cause significant psychological distress. There are a number of potential causes and treatments available for h... Read more