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... View more

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.View less

Pharmaceutical Published Insights

Coherent Market Insights Flumazenil Market

Published Date : Aug 2022

Flumazenil is a benzodiazepine inhibitor Flumazenil are used as reversal drug for postsurgical sedation from benzodiazepine anesthetics. Flumazenil injection is recommended for a complete or partial reversal of the sedative effects of benzodiazepines in conscious seda... View more

Coherent Market Insights Hemophilia Gene Therapy Market

Published Date : Aug 2022

Hemophilia is a genetic bleeding disorder in which an individual lacks or has low levels of proteins called clotting factors. There are around 13 types of clotting factors that work with blood platelets, which are necessary for clotting process to initiate. There are ... View more

Coherent Market Insights Veterinary Pain Management Market

Published Date : Aug 2022

Pain Management is a medical approach that draws on disciplines in science and alternative healing to study the prevention, diagnosis, and treatment of pain. Veterinary pain management is an important part of veterinary therapeutics. Pain management practice provides ... View more

Coherent Market Insights Antibacterial Drugs Market

Published Date : Aug 2022

Antibacterial drugs are derived from bacteria or molds. These antibacterial drugs are synthesized from simple molecules to form complex molecules. Antibiotics work in a variety of ways, such as inhibiting cell wall production, increasing cell membrane permeability, an... View more

Coherent Market Insights Pemetrexed Market

Published Date : Aug 2022

Pemetrexed is a chemotherapy drug indicated for the treatment of pleural mesothelioma and non-small cell lung cancer. Pemetrexed is a patented drug of Eli Lilly and Company and sold under brand name Alimta. In 2004, Alimta (Pemetrexed injection) was approved by US FDA... View more

Coherent Market Insights Calcium Channel Blocker Drugs Market

Published Date : Aug 2022

Calcium channel blockers are class of medicines used for the treatment of hypertension, irregular heartbeats called arrhythmias and chest pain related to angina they work by blocking some of the calcium that enters the heart and arteries. Calcium channel blocker drugs... View more

Coherent Market Insights Anca Vasculitis Drug Market

Published Date : Aug 2022

Anti-neutrophil cytoplasmic autoantibody (ANCA)-associated vasculitis (AAV) is a group of autoimmune diseases characterized by inflammation and damage to small blood vessels. Self-reactive antibodies known as ANCAs, which bind to and excessively activate neutrophils, ... View more

Coherent Market Insights Myelodysplastic Syndrome Treatment Market

Published Date : Aug 2022

Myelodysplastic syndromes are a group of cancers in which immature blood cells in the bone marrow do not mature or become healthy blood cells. The different types of myelodysplastic syndromes are diagnosed based on certain changes in the blood cells and bone marrow. M... View more

Coherent Market Insights Us 503b Compounding Pharmacies Market

Published Date : Aug 2022

These are specialized types of drug manufacturing organizations that serve a critical role in the patient care, as stated by the United States Pharmacopoeia (USP), compounding provides access to medication for patients who may not be able to use commercially available... View more

Coherent Market Insights Macular Degeneration Treatment Market

Published Date : Aug 2022

Macular Degeneration is an eye disease affecting the macula (the centre of the light-sensitive retina at the back of the eye), causing loss of central vision. It's generally caused by abnormal blood vessels that leak fluid or blood into the macula. There are 2 types o... View more

Coherent Market Insights Liver Fibrosis Treatment Market

Published Date : Aug 2022

Liver fibrosis is the excessive accumulation of extracellular matrix proteins including collagen that occurs in most types of chronic liver diseases. Advanced liver fibrosis results in cirrhosis, liver failure, and portal hypertension and often requires liver transpla... View more

Coherent Market Insights Antiplatelet Drugs Market

Published Date : Jul 2022

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 antiplatelet medications include, aspirin, clopidogrel, prasugrel, and ticagrelor. Aspirin is recommended for al... View more

Coherent Market Insights Pain Management Drugs Market

Published Date : Jul 2022

Pain management medications are specific drug classes, which have pharmacological actions on pain receptors and work against the pain symptoms. These medications include opioids, non-steroidal anti-inflammatory drugs (NSAIDs), anticonvulsants, antidepressants, muscle ... View more

Coherent Market Insights Metabolism Drugs Market

Published Date : Jul 2022

Metabolism functions improperly when enzymes and proteins are either not produced by the body (inherited disorders), or the produced enzymes do not function the way they are meant to. Metabolic disorders occur due to buildup of proteins, lipids, glycogen, urea, calciu... View more

Coherent Market Insights Ear Infection Treatment Market

Published Date : Jul 2022

In an ear infection, narrow tubes that run from the middle ear to high in the back of the throat (eustachian tubes) can become swollen and blocked. Ear infection can affect the inner, middle, and outer layer of the ear. Ear pain and new onset fever after several days ... View more

Coherent Market Insights Pulmonary Drugs Market

Published Date : Jul 2022

The pulmonary drugs are used for treating the conditions affecting lungs. The pulmonary drugs are used from treating minor illnesses such as the common cold to cure long-term disorders such asthma. These agents are available in different forms such as oral tablets, or... View more

Coherent Market Insights Insomnia Therapeutics Market

Published Date : Jul 2022

Insomnia, or sleeplessness, is a sleep disorder in which people have trouble sleeping. Signs and symptoms may include difficulty falling or staying asleep and not feeling well-rested. Sleeping pills may also be used, but should be monitored for side effects. Sometimes... View more

Coherent Market Insights Crohns Disease Treatment Market

Published Date : Jul 2022

Crohn’s disease is a form of chronic inflammatory bowel disease (IBD) that causes inflammation in the gastrointestinal tract. This inflammation can take place anywhere between the ileum of the small inte... View more

LogoCredibility and Certifications

Trusted Insights, Certified Excellence! Coherent Market Insights is a certified data advisory and business consulting firm recognized by global institutes.

Reliability and Reputation

860519526

Reliability and Reputation
Reliability and Reputation
Reliability and Reputation
ISO 9001:2015

9001:2015

ISO 27001:2022

27001:2022

© 2024 Coherent Market Insights Pvt Ltd. All Rights Reserved.