Pharmaceutical

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:

  • Market
    • Stress from patent expiries, niche marketing, and patient-centricity is challenging the growth plans of pharmaceutical companies. Moreover, in emerging markets, companies face strong competition from local players,who sell product at a much lower cost. To counter the same global companies need to significantly reduce their profit margins.
  • Technology
    • Rapid integration of healthcare and information technology is posing threat for current blockbuster drugs
    • Products based on new technologies offer superior properties and are more efficient as compared to existing products in the market
  • Regulation
    • There is constant price pressure from governments to meet demands of growing number of patients
    • Emerging markets have regulatory uncertainty, where decisions are made to protect the interests of the general population
    • Moreover, governments, especially in emerging economies are encouraging pharmaceutical companies to focus on preventive measures for diseases, which involves major investments
  • Innovation
    • Need for innovative products or therapies is rising constantly due to rising pressure of patent-cliff coupled with reducing profit margins
    • Identification of new bacterial and viral strains is driving the need for novel drugs

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.

Insights are not available.
Coherent Market Insights
Allergic Rhinitis Drugs Market - by Drug Class (Antihistamines, Intranasal Corticosteroids, and Immunotherapies) and by Distribution Channel (Hospital Pharmacies, Retail Pharmacies, and Online Pharmacies) - Global Industry Insights, Trends, Outlook, and Opportunity Analysis, 2018-2026

To Be Published : Aug 2018

Allergic rhinitis or hay fever is an IgE-mediated disorder caused by allergens such as mold or tress, animal, dander, house dust mites, weed pollens, and grass. It can occur in two different forms namely, seasonal and perennial, which in turn causes mild or moderate t

Coherent Market Insights
Global Rare Disease Drugs Market - Competitive Analysis

To Be Published : Aug 2018

Rare diseases or orphan diseases are conditions that affect a small percentage of population at any given time. Orphan drug designation is given to the drugs indicated for the treatment of rare diseases. According to the U.S. Food & Drug Administration (FDA), an o

Coherent Market Insights
Urinary Tract Infection Treatment Market, by Drug Type (Nitrofurans, Sulphonamides, Quinolones, and Others), by Indication (Complicated UTI, Uncomplicated UTI, and Recurring Complicated UTI), by Distribution Channel (Hospital Pharmacies, e-pharmacies, and Retail Pharmacies) and Geography - Global Industry Insights, Trends, Outlook, and Opportunity Analysis, 2018-2026

To Be Published : Aug 2018

Urinary Tract Infection (UTI) is caused when bacteria enters the urethra and infects the urinary bladder, causing severe health issues. UTI infections are common health problems in females than in males with biologic factors accounting as the major cause. Antibiotics

Coherent Market Insights
Dry Eye Syndrome Treatment Market, by Product Type (Cyclosporine, Oral Corticosteroid, Artificial Tears, Omega Supplements, Punctual Plugs (Removable and Dissolvable), and Others)), by Disease Type (Evaporative Dry Eye Syndrome and Aqueous Dry Eye Syndrome), and by Distribution Channel (Hospital Pharmacies, Retail Pharmacies, and Online Pharmacies) - Global Industry Insights, Trends, Outlook, and Opportunity Analysis, 2026 – 2026

To Be Published : Aug 2018

Dry eye syndrome (DES) is also known as keratisis sicca and keratoconjunctivitis sicca. Patients suffering from DES show damage to the ocular surface, instability in the tear film, and visual disturbance. Tear film covers the ocular surface, which is made up of three

Coherent Market Insights
Cardiovascular Drugs Market, by Drug Class (Anti-Hyperlipidemics, Anti-Hypertensive, Anti-Coagulants, Anti-Arrhythmic, Anti-Fibrinolytic, and Others {Cardiac Glycosides, Anti-Ischemic Drugs, and Antianginal Drugs}), and by Distribution Channel (Hospital Pharmacies, Retail Pharmacies, and Online Pharmacies) - Global Industry Insights, Trends, Outlook, and Opportunity Analysis, 2018-2026

To Be Published : Aug 2018

Some of the common cardiovascular diseases include hypertensive heart disease, rheumatic heart disease, ischemic heart disease, inflammatory heart disease, and cerebrovascular heart disease. Major problems associated with hypertensive heart disease include angina, hyp

Coherent Market Insights
Angina Pectoris Treatment Market, by Drug Class (Beta Blockers, Calcium Channel Blockers, Nitrates, Angiotensin-converting Enzyme Inhibitors, and Other) by Indication (Stable Angina and Unstable Angina) - Global Industry Insights, Trends, Outlook, and Opportunity Analysis, 2018-2026

To Be Published : Aug 2018

Angina pectoris is a medical term for chest pain or discomfort, which is caused due to coronary heart disease. Angina pectoris mainly occurs when heart muscle are unable to receive adequate blood. This condition usually occurs when one or more of the heart’s art

Coherent Market Insights
Von Willebrand Disease (vWD) Treatment Market, by Disease Type (Type 1 vWD, Type 2 vWD, Type 3 vWD, and Acquired vWD), by Treatment Type (Desmopressin, Replacement therapies, Contraceptives, Clot-stabilizing medications, and Drugs applied to cuts), and by Geography - Global Industry Insights, Trends, Outlook, and Opportunity Analysis, 2018-2026

To Be Published : Aug 2018

Von Willebrand Disease (vWD) is a common bleeding disorder caused due to missing or defect in von Willebrand factor (VWF), a clotting factor which helps blood to clot. Low amount of Willebrand factor (VWF) leads to severe and bleeding. There are four types of vWD name

Coherent Market Insights
Mantle Cell Lymphoma Treatment Market, by Therapy Type (Chemotherapy, Monoclonal Antibody Therapy, Targeted Therapy, Radiotherapy, and Stem Cell Transplant), by Route of Administration (Intravenous and Oral), and by End User (Hospitals, Clinics and Ambulatory Surgical Centers) and Geography - Global Industry Insights, Trends, Outlook, and Opportunity Analysis, 2018-2026

To Be Published : Aug 2018

Mantle cell lymphoma is a rare type of blood cancer, which occurs due to excessive growth of lymphocytes. Mantle cell lymphoma is one of the B-cell non-Hodgkin lymphoma, which occurs as a result of formation of tumors in the lymph nodes, which enters the blood and spr

Coherent Market Insights
Intravenous Solutions Market, By Solution Type (Crystalloid, Colloid, Free H2O solutions, and Blood products), By composition (Normal Saline, Hypertonic Saline, Lactated Ringer’s, Dextran, D5W, and others), By End User (Hospitals, Clinics, Ambulatory surgery centers, and others) And By Geography- Global Industry Insights, Trends, Outlook, and Opportunity Analysis, 2026

To Be Published : Aug 2018

Intravenous solutions are the chemically prepared fluids, which are administered in the body through venous circulation to maintain or replace the lost body fluid level. There are various types of IV solutions that have different effects on a human body. Majority of i

Coherent Market Insights
Surgical Glues Market - By Material Type (Natural –Fibrin, Collagen, and Gelatin, Synthetic- Cyanoacrylates, Polymeric Hydrogels, and Urethane Based Adhesives) By Application (Cardiovascular Surgeries, Orthopedic Surgeries, Urological surgeries, and Others) By End User (Hospitals, Specialty Clinics, Ambulatory Surgical Centers, and Others) - Global Industry Insights, Trends, Outlook, and Opportunity Analysis, 2018-2026

To Be Published : Aug 2018

Surgical glues also known as surgical adhesives or sealants are used after a traumatic injury or surgery to fix internal or external tissue together. Surgical glues are excellent materials for wound closure as they use a chemical bond to hold tissue together for heali

Coherent Market Insights
Generic Drugs Market - Global Competitive Analysis

To Be Published : Aug 2018

Generic drugs market growth is buoyed by increasing number of patented expiries for drugs each year. According to the IMS data small-molecule products worth US$ 121 Bn are expected to lose patents in developed markets, such as U.S and Europe between 2014 and 2018. The

Coherent Market Insights
Vaccine Contract Manufacturing Market - by Service Type (Fill-Finish and Bulk Product), by Vaccine Type (Subunit Vaccines, Live Attenuated Vaccines, and Others), and by Product Type (Single Vaccine and Combination Vaccine) - Global Industry Insights, Trends, Outlook, and Opportunity Analysis, 2018-2026

To Be Published : Aug 2018

Pharmaceutical and biopharmaceutical companies are focusing more on their respective core strengths to manage the rising price pressure. Thus, the demand for contract manufacturing is increasing. However, vaccine manufacturing is a complex venture, in which safety, ef

Coherent Market Insights
Weight Management Market, by Product Type (Fitness Equipment (Cardiovascular Training Equipment, Strength Training Equipment, Body Composition Analyzers, and Fitness Monitoring Equipment), Surgical Equipment (Minimally Invasive and Non-invasive) and Supplements (Protein, Fiber, Green Tea Extract, and Conjugate Linoleic Acid) - Global Industry Insights, Trends, Outlook, and Opportunity Analysis, 2018-2026

To Be Published : Aug 2018

Weight management is an approach to a attaining and maintaining a healthy lifestyle. Weight management includes a healthy balanced diet and physical exercise, to maintain energy intake and energy expenditure. An individual with healthy eating habits can control under-

Coherent Market Insights
Laxatives Market, by Drug Type (Bulk-forming Agents, Emollient Agents (Stool Softeners), Lubricant Agents, Stimulant Agents, Hyperosmotic Agents, Saline Laxative Agents, Chloride Channel Activators, and Others), by Availability (Over-the-counter and Prescription), by Drug Type (Generic and Branded), and by Route of Administration (Oral and Rectal) - Global Industry Insights, Trends, Outlook, and Opportunity Analysis, 2026 –2026

To Be Published : Aug 2018

Laxatives are chemical substances that are helpful in increasing stool motility and bowel movement, and are thus, used to treat and/or prevent constipation. Increasing incidences of medical disorders such as eating disorders where laxatives are overused and increasing

"How Can I Help You" ?

Finding it difficult to find the research that would cater to your business demands? Give us a chance to help you. One of our Research Consultants will connect to provide a customized solution.

Coherent Market Insights Benefits

  • Custom Research Solution

    Talk to our research consultant to design an exclusive report as per your research needs.

  • Customer Fulfilment

    We aim to fulfil client's research demands with tailored research solutions.

  • Quick Turnaround Time Reports

    We aim to provide research studies in quickest turnaround time and in a much cost effective manner.

  • 360-degree Approach

    We cover each industry from supply and demand side with an aim to provide a most holistic research study.

  • Assured Quality

    We strive to provide most accurate and reliable research findings in our research reports.