Unmet Needs and High Value Sales of Novel Drugs Drive Growth in the Global Pharmaceuticals Industry, According to a New Report from Global Industry Analysts, Inc.

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GIA announces the release of a comprehensive global outlook on the Pharmaceuticals Industry. The global pharmaceutical industry is going through a rough patch. Despite being largely immune to the global economic downturn, the impact of the global recession on the global economies is coming to haunt the sector. Onset of patent cliff, cost containment efforts from payers, and huge deficits in healthcare budgets are all affecting the growth in the sector. However, the market is expected to witness sizeable positive growth in the foreseeable future, given the continuing success of novel therapeutics, new drug approvals, growing aging population, rising incidence and prevalence of various diseases, increasing access to medications in developing countries, and high unmet needs in certain therapeutic areas.

Pharmaceuticals: A Global Outlook

Follow us on LinkedIn – The days of virtual free-run for the pharmaceutical industry appear to be coming to a close, as the industry begins to face several problems, many of which threaten to continue for years to come. However, this is about to change with the onset of patent cliff, cost containment efforts from payers, and huge deficits in healthcare budgets. These forces are pressurizing the global pharmaceutical industry to enhance productivity, increase efficiency of drug development, restructure the value chain, opt for collaborations, and reduce costs. Governments’ will to curtail increasing healthcare expenditure is beginning to hurt the prescription pharmaceuticals sector in some markets, a trend that is expected to continue in the near future, as more and more countries attempt to exercise control over the sector. However, the basic drivers of the market, such as the aging population, rising incidences of various diseases, and high unmet needs in several specialty therapeutic areas are expected to propel the global demand for Pharmaceuticals in the following years.

Although considered largely recession-proof, as apparent by the performance of the pharmaceutical market during the recent downturn, the pharmaceutical market is subject to several other factors that do put immense downward pressure on the industry. Patent expirations and cost containment measures, for instance, continue to threaten market growth. Major markets, such as the US and Japan, are facing the brunt of large scale patent expirations, which started in the year 2009. The effect has largely translated into slowdown in market growth, as growth in sales of certain drugs and therapeutic areas enabled the market growth to remain positive. Several countries worldwide are resorting to cost containment measures, an obvious move to put a check to spiraling healthcare costs. Following the debt crisis in Greece, European nations are actively pursuing means to cut down expenditure on healthcare, even as the overall market for pharmaceuticals in the region remains robust. Japanese pharmaceutical market continues to endure biennial pharmaceutical price deductions that affect its market growth, with patent expirations also contributing to the slowdown.

Pharmaceutical companies are increasingly focusing on areas that are typified by unmet medical needs for developing drugs that would enable them to fill the void created by patent expirations. Most of the newly found focus is on the biologic drugs. In addition to this, pharmaceutical companies are emerging out of their traditional stronghold of branded pharma and venturing into areas such as biosimilars and generic drugs. Pharma companies are also eyeing emerging markets that could offer future growth potential for the companies. However, these measures are largely long-term and carry substantial risks. For ensuring immediate sustenance and keeping profit levels up, manufacturers are increasingly resorting to cost cutting and cost saving measures. Restructuring has become a kind of norm in the industry to maintain significant profitability.

One of the major drivers of the global pharmaceutical market is the aging population of the world, which is more pertinent in some of the developed markets that are also high on the pharmaceutical market value. While population aged more than 65 years accounts for an estimated share of more than 20% of the total population in developed markets, the share is less than 10% in developing markets. Prevalence of chronic diseases is the highest in people above 65 years and consequently require utmost healthcare. Not only are some of the common diseases encountered by people in this age group are costly but the fact that very few people at this age are engaged in some employment that makes transferring some part of the costs by levying higher insurance premiums for availing health services becomes difficult.

Oncologics or Cancer therapies, which represents the fastest growing therapeutic class in the pharmaceutical market, is forecast to undergo a sea change, with the influx of several new technologies. Within the next few years, in addition to the already existing Rituxan, Herceptin, Avastin, and Gleevec; newly launched targeted therapies, such as Tykerb, Nexavar, and Tarceva, are expected to make their way into the list of leading cancer therapeutics. Targeted therapies are seen as optimally poised to post the fastest growth in the upcoming years, overshadowing demand for immunotherapy, chemotherapy, and hormonal therapy.

For over a decade, sales of generic drugs have been witnessing an outstanding growth, increasing their share in the global pharmaceutical market, substantially through the period. Generic drugs have been garnering significant growth in value as well as on the prescription basis over the recent years, accelerating its annual growth. These drugs have received immense popularity during the recent economic downturn, when consumers looked to cut costs in every plausible way. Rising pressure on governments to curtail healthcare costs worldwide has become a boon to the generics sector, as generic drugs emerge as a viable option to expensive drugs to bring down costs. Besides, the Patent Cliff in the global pharmaceutical industry is expected to expose several high-value, patented drugs to generic competition, further expanding the prospects of generic drug companies.

The research report titled “Pharmaceuticals: A Global Outlook” announced by Global Industry Analysts, Inc., provides a collection of statistical anecdotes, market briefs, and concise summaries of research findings. The report offers an indepth analysis of the pharmaceutical industry, highlights latest trends and demand drivers, the recent FDA approvals, the current and the impending patent expiries, in addition to providing statistical insights. The report also recapitulates recent noteworthy mergers, acquisitions, and other strategic developments. The report briefly discusses the pharmaceutical market outlook across various markets worldwide. Regional markets extensively discussed in the report include the United States, Canada, Japan, China, Germany, South Korea and India, among several others. Market discussions in the report are punctuated with fact-rich market data tables. Also included is an indexed, easy-to-refer, fact-finder directory listing the addresses, and contact details of companies worldwide.

For more details about this comprehensive industry report, please visit –
http://www.strategyr.com/Pharmaceuticals_Industry_Market_Report.asp

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.

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Global Industry Analysts, Inc.
Telephone: 408-528-9966
Fax: 408-528-9977
Email: press(at)StrategyR(dot)com
Web Site: http://www.StrategyR.com/

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