ALTAPHARMA MARKET ANALYSIS

Market Challenges And Opportunities

• Stringent Regulatory Requirements
• Pricing Pressure
• Patent Expirations

Global Altapharma Market- Drivers

• Increasing Prevalence of Chronic Diseases: Rising prevalence of chronic illnesses such as cardiovascular diseases, cancer, diabetes, neurological disorders, and autoimmune boosts demand for pharmaceutical products. For instance, in September 2020, according to an article published by Preventing Chronic Disease 51.8% of civilian, noninstitutionalized adults were diagnosed with at least 1 of 10 selected chronic conditions, in 2018. More specifically, the 24.6% of adults have 1 chronic condition, and 27.2% have more than two chronic conditions.
• Continuous R&D Activities and New Product Launches: Pharmaceutical companies are continuously launching new products to expand their product portfolios. For instance, in July 2022, Danone a food company launched the new Dairy & Plants Blend baby formula to meet parents’ desire for feeding options suitable for vegetarian, flexitarian and plant-based diets, while still meeting their baby’s specific nutritional requirements.
• Favorable Government Regulations: Supportive regulatory environment for conducting clinical trials and streamlined approval process for drugs are contributing to continued pharmaceutical innovation and new product launches. For example, the U.S. FDA has expedited the review process of generic drug applications in recent years. It had approved record numbers of generic drugs since 2020. This has intensified market competition and pushed down prices. As a result of such initiatives, the share of generic drugs in overall medicine consumption has increased substantially globally. As per WHO data, over 80% of all medicine provided in low and middle income countries in 2021 were generic formulations. In the U.S., generics now account for almost 90% of all prescriptions.
• Growth in Healthcare Expenditure: Rising healthcare spending on prescription drugs in developing countries is expected to boost pharmaceutical sales. For instance, in 2021, the U.S. spent US$ 4,255.1 billion on healthcare. This spending can be broken down into various categories such as hospital care, clinical services, prescription drugs, home health care, and other personal health care costs.

Global Altapharma Market- Opportunities

• Expanding Application of Biologics: Biologics are poised to offer tremendous opportunities for growth of the global pharmaceutical market in the coming years. With ongoing advances in biotechnology and bioscience, biologics have increasingly expanded beyond treating rare genetic disorders to target broader chronic and lifestyle-related diseases. Many biologics under research and development aim to offer tailored therapies for cancers, autoimmune conditions, cardiovascular diseases, neurological disorders and other common ailments.
• Rising Adoption of Precision Medicine: Rising adoption of precision medicine is poised to unlock tremendous opportunities in the altapharma market in the near future. Precision medicine, also referred to as personalized medicine, is an innovative approach that takes into account individual variability in people's genes, environment, and lifestyle for each person's treatment and prevention strategies. This advanced approach allows doctors and researchers to predict more accurately that treatment and prevention strategies will work best for each person.
• Growth Potential in Emerging Markets: Developing healthcare infrastructure and expanding patient base in emerging markets such as China, India, Brazil, and others is anticipated to further propel the market growth. Countries like India, Brazil, Indonesia, and others are among top 10 largest economies in world, and are expected to remain major drivers of global economic growth in coming years. With a combined population of over 4 billion people, majority under the age of 30, the emerging markets present massive patient pool and future customer base for healthcare products. As per IMF (International Monetory Fund) estimates in 2022, the emerging nations are projected to contribute over 70% of global GDP growth by 2030.

Global Altapharma Market- Restraints 

• Stringent Regulatory Requirements: Complex regulatory frameworks for drug approval often lead to increased R&D costs and longer approval timelines, and thus, hampering the market growth. For instance, in the U.S., the average time taken by the FDA to review and approve a New Drug Application is 10-12 years. Companies have to invest heavily in R&D and clinical trials even before knowing if their drug will be approved. According to a study by Tufts Center for the Study of Drug Development, the average out-of-pocket cost to develop and gain approval for a new prescription medicine in the U.S. is estimated to be US$ 2 .6 billion. The stringent regulations in the European Union follow similar guidelines of safety and efficacy testing through clinical trials as mandated by the FDA in the US.
• Pricing Pressure: Pricing regulations and rising instances of reimbursement cuts are compelling pharma companies to reassess product pricing and R&D investments. For example, in the U.S., the Centers for Medicare and Medicaid Services publishes drug pricing benchmarks each quarter, and if prices rise faster than inflation the manufacturers may need to pay rebates. This directly impacts companies' revenue and ability to invest in research and development of new drugs.