US.: +1-650-918-5898
UK.: +44-020-8133-4027
AUS.: +61-2-4786-0457
INDIA: +91-848-285-0837
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.
Published Date : Feb 2019
Ticagrelor, a drug commonly used as a platelet aggregation inhibitor, received approval from U.S. Food and Drug Administration (USFDA) in July 2011 and in the European Union by the European Commission in December, 2010. Ticagrelor is used for the prevention of thrombo... View more
Published Date : Feb 2019
Nanopharmaceuticals are novel medicine with particle size less than 1 micron, which work on the principle of nanotechnology. Nanopharmaceuticals are widely used in drug delivery as a carrier for therapeutic compound or as a therapeutic compound. Nanopharmaceuticals ar... View more
Published Date : Feb 2019
Antisense oligonucleotides are synthetic strings of nucleic acid, which reduce expression of messenger RNA (m-RNA). The function performed by interference with pre m- RNA splicing are restoration of protein and modification of protein. Antisense oligonucleotide is a n... View more
Published Date : Jan 2019
Infantile spasm is a rare disorder that appears as seizures in infants below 1 year. Infantile spasm causes series of sudden, jerking movements of legs and arms or fast drop of head. The duration of spasm can last up to couple of seconds. Major drugs used for the trea... View more
Published Date : Jan 2019
A cough is a most common symptom of various upper and lower respiratory tract infections. It affects a large proportion of the population leading them to seek medical attention. According to the data published by Journal of the Association of Physicians of India in 20... View more
Published Date : Dec 2018
Transthyretin amyloidosis is a rare inherited and slowly progressive disease characterized by abnormal buildup of deposits of a protein called amyloid (amyloidosis) in the body's organs and tissues. Two main type of transthyretin amyloidosis includes hereditary transt... View more
Published Date : Dec 2018
Acetazolamide is an enzyme inhibitor, which acts specifically on carbonic anhydrase. Acetazolamide, sold under the trade name Diamox, is used to treat glaucoma, altitude sickness, epilepsy, fluid retention, heart failure, and seizures. ... View more
Published Date : Dec 2018
Omeprazole delayed-release capsules in combination with other medications are used to eliminate H. pylori, a bacteria causing ulcers and prevent the development of new ulcers in people with a history of ulcer formation of the small intestine. Prescription omepraz... View more
Published Date : Dec 2018
Childhood absence epilepsy diagnosis revolves around identifying symptoms and categorizing the epilepsy type based on those symptoms. Diagnostic methods and techniques for childhood absence epilepsy include electroencephalogram (EEG)/video telemetry, magnetic resonanc... View more
Published Date : Nov 2018
Ciclesonide is an inhaled corticosteroids (ICS), recommended in asthma and chronic obstructive pulmonary disease (COPD) indication to get relief from difficulty in breathing, chest tightness, wheezing, and coughing. Inhaled drugs including inhaled corticosteroids, lon... View more
Published Date : Nov 2018
Resveratrol belongs to a class of polyphenolic compounds called stilbenes. Resveratrol can be derived from red grape skin, Japanese knotweed (polygonum cuspidatum, peanuts, blueberries and some other berries and have potential antioxidant activities. It causes the bod... View more
Published Date : Oct 2018
Calciphylaxis or calcific uremic arteriolopathy is a syndrome of vascular calcification, thrombosis, and skin necrosis. It mostly occurs in patients with end-stage kidney disease or kidney transplant. Calciphylaxis results in chronic non-healing wounds and is usually ... View more
Published Date : Oct 2018
Halitosis originates from an oral or a non-oral source. It is caused by volatile molecules, which are developed due to pathological or non-pathological reasons. These volatile compounds are aromatic compounds, sulphur compounds, short-chain fatty acids, nitrogen-conta... View more
Published Date : Sep 2018
Ranitidine is a histamine type 2 (H2) receptor blocker drug available by prescription as well as over-the-counter (OTC). Ranitidine is used in treatment of intestinal & stomach ulcers, gastroesophageal reflux disease (GERD), and erosive esophagitis, and Zollinger-... View more
Published Date : Aug 2018
Cetirizine hydrochloride is a second-generation histamine H1 antagonist that is effective in treatment of allergic rhinitis, chronic urticaria, and pollen-induced asthma. Cetirizine does not cause drowsiness or anticholinergic side effects opposed to conventional antihistamines. Cetirizine is ava... View more
Published Date : Aug 2018
Tylosin is used in livestock for various purposes such as a feed additive for growth promotion and as an antibiotic against infectious diseases in animals such as chickens, turkeys, felines, canines, pigs, calves, and others. These antibiotics aid in the treatment of ... View more
Published Date : Aug 2018
Respiratory tract infection is any infection in the nose, sinuses around the nose, throat (pharynx), voice box (larynx), and windpipe (trachea), airways (bronchi) or lungs, which may occur anytime, usually beginning with cold. This infection is usually caused by bacteria and viruses. Virus prone ... View more
Published Date : Jul 2018
Triptorelin is a peptide formulation for injection that was developed mainly for the treatment of advanced metastatic prostate cancer. Furthermore, other indications developed subsequently include the treatment of uterine fibroids (a benign tumor of muscle tissues in ... View more