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.
Avascular Necrosis Market – Insights Avascular necrosis (AVN) also termed as osteonecrosis, or aseptic necrosis, or ischemic bone necrosis, a condition resulting in the death of bone cells due to loss o... Read more
Global Ursodeoxycholic Acid Market – Market Insights Ursodeoxycholic acid (UDCA) is a bile acid taken as either a tablet or liquid to treat gallstones and to treat and prevent progression of cystic fibr... Read more
Saline Laxatives Market Insights Rising incidence of patients suffering from irritable bowel syndrome, Parkinson’s disease, multiple sclerosis, and pregnancy may lead to rising n... Read more
Orthokeratology Market – Insights Orthokeratology (Ortho-k) is a process that uses specially designed contact lenses to temporarily reshape outline of the cornea to reduce myopia (nearsightedness). It i... Read more
Antiplatelet Drugs Market – Insights Antiplatelet drugs are prescribed to individuals with a history of heart attacks and these drugs aid in reducing reoccurrence of heart attacks. Some of the antiplate... Read more
Global Ranitidine Market – Global Industry Insights Healthcare professionals have been keenly interested in the treatment of gastroesophageal reflux disease (GERD) and stomach & intestinal ulcer owi... Read more
Hormone Replacement Therapy Market – Insights New mergers and acquisitions is one of the major factor driving the growth of the hormone replacement therapy market. For instance, in 2014, Pfizer Inc., a ... Read more
Global Cetirizine Hydrochloride Market – Offering Potential Allergic Treatment Cetirizine hydrochloride belongs to the antihistamine drug class, which reduces the natural chemical, histamine in the body... Read more
Corporate Wellness Market – A Step towards Employee’s Well-being Corporate wellness plays a major role in advanced healthcare, as it keeps employees healthy and happy. Corporate organizations cond... Read more
Tylosin Market – Insights Tylosin is an antibiotic that belongs to the class of macrolide antibiotics. It functions by binding to 50S ribosomal subunit and then interacts with 23S RNA thereby blocking a... Read more
Dermatophytic Onychomycosis Treatment Market – Insights Dermatophytic Onychomycosis, also known as tinea unguium, is a fungal nail infection caused by dermatophytes. Dermatophytes are fungi that require kerat... Read more
Respiratory Tract Infection Treatment Market – Insights Respiratory diseases such as bronchitis, asthma, allergic rhinitis, pneumonia, and sinusitis can significantly curtail the physical activities of ... Read more
Hemophilia Treatment Market – A Significant Management for Hemophilic Patients Hemophilia, a genetic bleeding disorder in which an individual lacks or has low levels of proteins named clotting factor,... Read more
Drug Abuse Treatment Market- Insights Drug Abuse can be defined as habitually, dependence of an individual on any drugs, which turns into an addiction. Alcohol, tobacco, cigarettes, heroin, and marijuana are ... Read more
Plant-based Vaccines Market - Insights Plant serves as an important sourc... Read more
Scopolamine Market – Insights Scopolamine is an alkaloid drug extracted from plant called henbane to treat nausea and motion sickness and further to dilate the pupil in ophthalmic procedures. Scopolamin... Read more
Global Triptorelin Market – Global Industry Insights Gonadotropin-releasing hormone (GnRH) agonists have greater safety and efficacy profile than estrogens and anti-androgens among various therapies of ... Read more
Rivaroxaban Market Insights – Stop the Clot Rivaroxaban is a Non-Vitamin K Antagonist Oral Anticoagulants (NOAC) that is marketed as Xarelto. Anticoagulant medicines are potent therapeutic agents used i... Read more