PHARMACOVIGILANCE MARKET ANALYSIS

The high upfront costs associated with implementing pharmacovigilance software is posing a major challenge for the growth of the global pharmacovigilance market. Setting up robust PV software requires significant investments in purchasing licensed software, customized configuration and integration with other IT systems, extensive validation and testing, and prolonged training of teams on using the new platform effectively. This leads to substantial capital expenditure that may not be feasible for many smaller to mid-sized companies and startups with limited budgets. Additionally, a major component of the high setup costs stems from hiring qualified professionals to manage the software implementation project. Leading PV software providers demand experienced consultants, validators, and project managers to oversee the various stages of deployment, ensuring compliance with regulatory guidelines and optimizing functionality. However, the shortage of skilled labor in this niche domain has driven consultation charges through the roof in recent times. According to data from the California Employment Development Department, average salaries of pharmacovigilance specialists in the U.S. grew by over 12% during 2020-2021 due to high demand. This further exacerbates the costs burden on companies.

Market Opportunity – Emerging markets in Asia Pacific and Latin America

The emerging markets in Asia Pacific and Latin America present a huge growth opportunity for the global pharmacovigilance market. These regions are experiencing rapid economic development which has lifted billions of people out of poverty and expanded the middle-class consumer base with increased spending power. As disposable incomes rise, healthcare systems are also undergoing modernization with greater investment. This has resulted in larger patient populations gaining access to advanced medications for various chronic and life-threatening diseases. At the same time, the growth of the pharmaceutical industry has exploded in these regions to cater to the demands of their huge populations. Many large multinational drug manufacturers have set up manufacturing and R&D facilities within Asia Pacific and Latin America in recent years to reduce costs and be closer to their customer base. As drug development rises sharply, the need for robust pharmacovigilance practices has become paramount to ensure patient safety standards are maintained. Both public and private healthcare organizations are recognizing the importance of pharmacovigilance and are dedicating more resources towards establishing nationwide surveillance systems.