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growth drivers of pharmaceutical industry

January 16, 2021

Industry Overview A large number of vendors and distributors, multiple manufacturing facilities, and complex and unequipped distribution networks have complicated the pharma supply chain. Pharmaceuticals companies are forced to reduce their research and development (R&D) spending due to slowdown of growth in last few years which is also expected to hamper growth of the global pharma market as new drugs revenue form large part of pharma firm’s revenue due to exclusivity of the drug. Slower sales growth rates 4. This phase is of crucial importance and over 40% of the total cost is incurred in this phase. However, extreme situations like prolonged recession may affect the growth rate of the industry. The market is envisioned to grow at a considerable CAGR over the forecast period i.e. The growth in this market is predicted on the basis of various factors like market drivers, current and upcoming trends, current growth pattern, and market challenges. The growth in this market is predicted on the basis of various factors like market drivers, current and upcoming trends, current growth pattern, and market challenges. - This report has detailed profiles 10 key players in Global pharmaceuticals market covering their business strategy, financial performance, future forecasts, competitive landscape and SWOT analysis. To see the essay’s introduction, body paragraphs and conclusion, read on. Strong research and development activities helps the industry to move forward in combating any unforeseen circumstances or any ongoing ones. Therefore, companies have to rely on highly successful products to fund their R&D activities. The report outlines four key drivers of growth: 1. * Increase in volume: With the demographic profile changing following the increase in the number of people in the old age segment, the volume of sales of pharmaceutical products is also expected to increase. In fact, the industry is expected to exceed a $1 trillion by the following year. The reasons are simple: aging and growing population, rising income levels, and emerging medical conditions and emergence of new diseases. Get Your Custom Essay on Growth Drivers Of Pharmaceutical Industry Just from $13,9/Page, We will write a custom essay sample on Growth Drivers Of Pharmaceutical Industry specifically for you FOR ONLY $16.38 $13.9/page. (2019, Dec 06). Global pharmaceutical market is expected to grow in the upcoming years despite recent slowdown in key markets across the globe. Europe on the contrary is expected to … A large number of companies underwent restructuring and quite a few mergers and acquisitions were witnessed; consolidation at all levels in the industry-brands, assets and acquisition of companies-took place. Sign up today for your free Reader Account. This is in contrast to the cost structure of the global majors, for whom the key costs are: selling costs, general and administration costs; manufacturing costs; and R&D expenses. Kamna Talwar. It is characterized by relative immunity to economic cycles in the short to medium term. Growth in the pharmaceutical industry is linked to the introduction of new drugs and increase in prices, among other factors. It is characterized by relative immunity to economic cycles in the short to medium term. No problem! This is partly due to thousands of compounds that are currently in the latter stages of clinical development, coupled with hundreds of new products … However, extreme situations like prolonged recession may affect the growth rate of the industry. Government made amendments to the DPCO in 1979 reducing the number of drugs under DPCO from 347 to 163. * New product introduction: A new product broadens the existing market in terms of its reach and drive growth in the following manner: o Drugs that serve unmet needs for a relatively small patient base. The main features of this Act are the extension of patent term to 20 years from the date of application, incorporation of a provision relating to right of import and changes in the provisions relating to compulsory licensing. She studies at the University of California, Santa Barbara. Typically, out of 10,000 compounds synthesised, only around 20 reach the animal testing stage. Between 1992 and 2002, revenue has more than tripled among biotech firms alone, reaching nearly $30 billion. - In the Asia Pacific region growth forecasts are provided for Australia, China, India, Japan and South Korea. Topic: Growth Drivers Of Pharmaceutical Industry, By clicking "Send Message", you agree to our, Porter’s Five Forces Pharmaceutical Industry, Pharmaceutical Industry Average Financial Ratios 2018, The automotive industry despite trending towards efficiency, https://paperap.com/paper-on-value-drivers-pharmaceutical-industry/, terms Key drivers for the industry in 2015. words(double Growth Drivers Of Pharmaceutical Industry. Nigeria pharmaceutical market size, sales, share, other stats, Impact of COVID-19 Outbreak on Pharmaceutical Industry, Manufacturers, Contract Manufacturers Suppliers and Recovery Strategy and dynamics such as emerging trends, market opportunity, drivers & challenges to market growth have been included in the latest report published by Goldstein Market Intelligence. The Patent Act, 1970, provided opportunity to Indian players by allowing reverse process engineering of known molecules (under and off patent). At Paperap.com you will find a wide variety of top-notch essay and term paper samples on any possible topics absolutely for free. The selling expenses for these drugs are also lower as they are cheaper to launch than blockbusters. It is this segment that we are analyzing in the project. © 2021 GlobeNewswire, Inc. All Rights Reserved. Thus, the multinationals felt discouraged to introduce their latest products in the Indian market even as the Indian companies increasingly took up the manufacturing of formulations. share; Market Study Report, LLC, adds a comprehensive research of the ' Nano Pharmaceutical market' that mentions valuable insights pertaining to market share, profitability graph, market size, SWOT analysis, … An increasingly aging population taking more and more medications promises further growth. The domestic companies meet about 90% of the country’s total bulk drugs requirement and almost the entire demand for formulations. North America is expected to retain it’s leading position in the global pharmaceuticals market with market share of 45.33% in 2023 improving on it’s market share compared to 2017. The rate of failure is relatively high. Europe on the contrary is expected to see a decline in it’s market share compared to 2017 and be worth 20.24% of global pharma industry in 2023. Apart from ageing and rising population the improvements in purchasing power and access to quality healthcare and pharmaceuticals to poor and middle-class families worldwide also is driving the growth of global pharma industry. Having shaken off the impact of the patent cliff over the past three years, the pharmaceutical industry has been riding on upward momentum, with increased R&D productivity reflected in higher valuations and greater innovation reaching the market. The structure of the Indian pharmaceutical industry (as that of its global counterpart) is characterized by fragmentation, with over 20,000 players-a large number of which are in the small-scale sector, competing for market share. - In the Europe region growth forecasts are provided for France, Germany, Italy, Russia, Spain and United Kingdom. The global Pharmaceutical Intermediates market is anticipated to reach at a notable value by the end of 2025. On the other hand, adoption of cost control policies along with tightening of rules by governments in key markets are expected to impact the growth prospect of the global pharmaceuticals industry. Some of the challenges include: 1. 2020-2025. Industry … During 2001, at the Ministerial Conference held at Doha (Oman), a declaration on Public Health was signed by the member countries of the World Trade Organisation (WTO – the successor to GATT). Most companies can no longer afford to carry out R&D to find innovative compounds. GLOBAL PHARMA INDUSTRY - GROWTH DRIVERS (3,4,5) Increase in life expectancy and ageing population: Life expectancy is expected to reach 73.7 years by 2017 from an estimated 72.6 years in 2012, bringing more than 10% of the total global population to over the age of 65 years. Expiring patents 2. Government reduced the number of drugs under DPCO further from 146 to 74. The industry has around 20,000 players and is characterized by an increasing concentration at the top. North America is expected to retain it’s leading position in the global pharmaceuticals market with market share of 45.33% in 2023 improving on it’s market share compared to 2017. Asia Pacific pharmaceuticals market is expected to retain it’s second position with a market share of 24.07% in 2023. … Drug Price Control Order (DPCO) was issued to control the prices of drugs and make them affordable to consumers and Indian Patent Act was enacted to provide legal recognition to process patents for pharmaceutical products. Additional growth drivers include improved access to medicines in emerging markets as a result of new pricing policies around the world. The industry was almost non-existent in this period and despite the existent need, demand was limited due to low-income levels and lack of access to medicines. Reportlinker finds and organizes the latest industry data so you get all the market research you need - instantly, in one place.__________________________. Subject: A Raisin In The Sun. - In the Middle East and Africa (MEA) region growth forecasts are provided for Algeria, Bahrain, Cote d’Ivoire (Ivory Coast), Egypt, Jordan, Kenya, Kuwait, Lebanon, Morocco, Saudi Arabia, Senegal, South Africa, Tunisia, Turkey and UAE. Near-Term Growth Will be Driven by Rare Disease Drugs and Biologics • The rare disease sector is an important growth driver in the pharmaceutical industry. The size of a pharmaceutical market increases as a result of … Hi there, would you like to get such a paper? Further, the export incentives and the advantage of low production costs combined to provide a substantial boost to exports (especially of bulk drugs). Let Professionals Help You, Leave your email and we will send you an example after 24 hours 23:59:59, Let us edit for you at only $13.9/page to make it 100% original. Find out more in the video below. Want to add some juice to your work? In 2008, 1.4 billion people – and rising – were overweight, according to WHO estimates. Moreover, higher margins were permitted on the production cost. The growth in this market is predicted on the basis of various factors like market drivers, current and upcoming trends, current growth pattern, and market challenges. According to the report, 2.7 million jobs have b… The goals established by the IPA are intended to define the advancement of the Indian pharmaceutical industry and help it to realise its potential. 27 January 2015 Gustav Ando. Fragmentation at every stage and lack of integration across the value chain impact the visibility and traceability of products as they move. Here you will also find the best quotations, synonyms and word definitions to make your research paper well-formatted and your essay highly evaluated. These companies emerged as major producers of critical drugs such as penicillin and other anti-infectives. The size of the global pharmaceutical industry was estimated at US$362.8 billion (December 2000) with North America being the largest market (44%), followed by Europe (24%), Latin America (6%) and Asia, Africa and Australia having a combined share of 26%. In 1954, Government established Hindustan Antibiotics Limited (HAL), followed by Indian Drugs and Pharmaceuticals Limited (IDPL) in 1961. Moreover, only around three out of every 10-drug products recover their R&D costs. Innovations in advanced biologics, nucleic acid therapeutics, cell therapies and bioelectronics & implantables has attracted investments in the industry by even non-pharma companies like Facebook, Qualcomm etc. Increase in competition by generic companies 3. Emphasis on strategically working with regulators to reduce or at least stabilize prices for vulnerable … Apart from ageing and rising population the improvements in purchasing power and access to quality healthcare and pharmaceuticals to poor and middle-class families worldwide also is driving the growth of global pharma industry. In 1970, two major policy initiatives were taken by the Indian Government to strengthen the domestic pharmaceutical industry. The COVID-19 had minimal impact on the Indian pharmaceutical industry, which posted a stable growth of 8 per cent during FY20 thanks to a domestic overall growth of … https://www.reportlinker.com/p05750669/?utm_source=GNW. However, a trend of consolidation is visible at the top with the 5 players in the Indian pharmaceutical industry account for 22% of the retail formulations market. Click to learn more https://goo.gl/CYf83b. Also, both the houses of Parliament have recently cleared the Patents Amendment Act, 2002. Another aspect which is leading this growth is rising focus of pharmaceuticals companies to tap the rare and speciality diseases market. If you need this or any other sample, we can send it to you via email. Growth in the pharmaceutical industry is linked to the introduction of new drugs and increase in prices, among other factors. It also signed the General Agreement on Tariffs and Trade (GATT) and was expected to introduce the system of product patents (as opposed to process patents) and provide legal protection to Trade Related Intellectual Property Rights (TRIPS). Category: #world By Partha Ray Published: 11 hours ago. Policy-driven changes in healthcare spending and the growing significance of generic competition are acting in tandem to force pharmaceutical companies to adopt more cost-effective manufacturing strategies resulting in an upsurge in the level of M&A activity in the industry as drugmakers consolidate to reduce costs, diversify product portfolios and expand geographic … How about make it original at only $13.9/page? LONDON--(BUSINESS WIRE)--The pharmaceutical manufacturing industry is considered one of the top 10 industries with the highest barriers to entry.With various trends and growth drivers … Lewis expects the global pharmaceutical industry to grow at just 2-3% annually at net prices (after discounts, rebates, etc.) Global Pharmaceuticals Industry Analysis and Trends 2023 Market Research Report Coverage Global Pharmaceuticals Industry Analysis and Trends 2023 report covers growth forecasts for 39 countries along with 5 major geographic regions. 550 which is also driving the global pharmaceuticals industry growth. Growth Drivers: Pharmaceutical companies switching from Rx to OTC drugs especially in the U.S; Growing trend of self-medication in developing economies; Significant cost savings due to OTC drug usage in Asia pacific and Latin America ; Pitfalls & Challenges: Several concerns pertaining to incorrect diagnosis and substance abuse; Get more details on this report - Request Free … By continuing we’ll assume you’re on board with our cookie policy. To wrap it up, ten drivers of market growth in the pharmaceutical industry are branded drugs, off-patent drugs, OTC growth, healthcare reform, higher drug prices, changing drug status, the convergence of healthcare and technology, innovations in medical treatment, chronic ailments, and an aging population. Pathological overweight (obesity) causes metabolic syndrome, a cluster of conditions including type 2 diabetes, high blood pressure, hardening and narrowing … Latin America and Middle East and Africa (MEA) are expected to retain 7.53% and 2.96% market share of global pharmaceuticals market in 2023. This report also covers therapy-wise forecast for 15 key therapy areas (Antianemic, Anticoagulant, Antidiabetics, Antifibrinolytic, Antihyperlipidemic, Antihypertensive, Antirheumatics, Antiviral, Bronchodilators, Dermatological, Immunosuppressants, Multiple Sclerosis (MS), Oncology, Sensory Organ and Vaccine) in global pharmaceuticals market. All the content of this paper is just her opinion on Growth Drivers Of Pharmaceutical Industry and should not be seen as the way of presenting the arguments. The move also augmented the interest of multinationals in India. Sorry, but copying text is forbidden on this website. This growth is fuelled by the growing and ageing population in key markets. The major driver of that slower growth is the increasingly difficult conditions in the US market as major products lose patent protection, and … - This report provides information about current and future trends for Global pharmaceuticals market.Read the full report: https://www.reportlinker.com/p05750669/?utm_source=GNWAbout ReportlinkerReportLinker is an award-winning market research solution. The signing of the GATT induced a series of changes in the business strategy of the existing pharmaceutical companies. The Government also provided incentives to multinational companies so that they were encouraged to set up manufacturing bases in India. The three important cost heads for the Indian pharmaceutical industry are: material costs; marketing & selling costs; and employee costs. If you contact us after hours, we'll get back to you in 24 hours or less. Latin America and Middle East and Africa (MEA) are expected to retain 7.53% and 2.96% market share of global pharmaceuticals market in 2023. Apart from this generics pharma market is facing decreasing return on investment due to price erosion in key markets which is forcing many firms to look for other avenues and markets to sustain growth. Don't use plagiarized sources. May 1, 2017. - This report provides SWOT (strengths, weakness, opportunities and threats) analysis for Global pharmaceuticals market. The Government also provided incentives to small-scale pharmaceutical units which led to the surfacing of many such units in the formulations segment, where technology was not the most important criteria. Gartner’s Six Business Drivers Impacting the Pharmaceutical Industry. New innovative products 3. CONCLUSION. We use cookies to give you the best experience possible. The two are not entirely unrelated, as the savings that … As per World Population Prospects by United Nations, the worldwide population is likely to cross 9.3 billion by 2050 and around 21% of this population is expected to be aged 60 and above. Hence, Large Indian companies like Ranbaxy, DRL etc who are members of both the OPPI and the IDMA will form the basis of our study. There are over 20,000 players in the industry, with a large number of them involved in the production of unbranded products. - This report provides Porter’s Five Forces analysis for Global pharmaceuticals market. This post examines the major changes within Pharma industry and the impact of these changes on the Pharma business model. North America is expected to retain it’s leading position in the global pharmaceuticals market with market share of 45.33% in 2023 improving on it’s market share compared to 2017. New York, Jan. 17, 2020 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Global Pharmaceuticals Industry Analysis and Trends 2023" - https://www.reportlinker.com/p05750669/?utm_source=GNW As per the research, the global pharmaceutical industry will we worth USD 1.57 trillion by 2023. The most-quoted study of drug development costs states that on average, the development of a new drug—a new active pharmaceutical ingredient (API)—costs … The sample essay on Growth Drivers Of Pharmaceutical Industry deals with a framework of research-based facts, approaches, and arguments concerning this theme. Nano Pharmaceutical Market | Global Industry Analysis, Segments, Top Key Players, Drivers and Trends to 2025 . 231 billion in FY2001, and growing at a compounded annual growth rate (CAGR) of around 17% per annum, the Indian pharmaceutical industry is one of the largest among developing countries. spaced), Paper type: Essay , o Drugs that create demand for products that did not exist earlier: A recent example of this is Pfizer’s Viagra. Unprecedented challenges in the pharmaceutical industry are raising concerns about innovations that increase R&D, administrative and sales cost. o Drugs that increase demand in existing markets. While scientific advancements have led to miraculous treatments, technological advancements have … Ethical pharmaceuticals market is expected to gain market growth at a potential rate of 7.70% in the forecast period of 2020 to 2027. The evolution of the Indian pharmaceutical industry can be explained in terms of six broad phases, as discussed here. There is also a large segment of unbranded drugs in the market. - In the Latin America region growth forecasts are provided for Bolivia, Brazil, Costa Rica, Chile, Colombia, Dominican Republic, Ecuador, Mexico, Paraguay, Peru and Uruguay. • Major innovations will continue to drive the size and growth of the sector with positive implications for the health of the global population. The industry has been growing at a CAGR of 17% over the last 5 years. - This report identifies the need for focusing on global pharmaceuticals market - The report identifies the growth drivers and inhibitors for global pharmaceuticals market. through 2022; that’s just half the rate of growth the industry experienced in the previous five-year period. The focus of the companies shifted, and research emerged as the inevitable driver of long-term growth. Today, India is not only self sufficient in drugs and formulations, we also export to different countries in Europe and North America. Of these 20, only around 10 reach clinical trials, and finally, just about one attains the approval of the drug regulatory authorities. Don't Miss a Chance to Connect With Experts. “Pharma 2020: Marketing the future” is the third in this series of papers on the future of the pharmaceutical industry published by PricewaterhouseCoopers. - In the North America region growth forecasts are provided for Canada and USA. In the past years, the market has grown at a significant rate and is projected to showcase a lucrative growth in the upcoming years. This sample essay is completed by Harper, a Social Sciences student. Alongside population aging, another factor driving growth in the biotechnology industry is the global spread of the western lifestyle. Increasing economic growth in India 2. Increased foothold in markets such as Japan and China. The DPCO was again amended in 1987, resulting in a reduction in the number of drugs under price control from 163 to 146. With a size of Rs. Growth Drivers and Opportunities of the Industry R&D Infrastructure: An Indian pharmaceutical company spends anywhere between 2-10% of its revenue on R&D. * Increase in prices: Demand is relatively price- insensitive implying that the market size increases along with an increase in prices. Big Pharma Spends Double On Marketing Than R&D . The Indian pharmaceutical industry, estimated at Rs 231 billion, is the fourth largest in the world in terms of volumes. Tighter r… Initially, Government policies for the pharmaceutical sector encouraged multinational companies to establish manufacturing bases in India, leading to the dominant control of the Indian pharmaceutical market by these MNC’s (market share of over 80% ). Pharma companies are facing challenges with developing new medicines and meeting the complex demands of clients. of service. How about receiving a customized one? Another aspect which is leading this growth is rising focus of pharmaceuticals companies to tap the rare and speciality diseases market. pharmaceuticals industry, which is composed of drug makers, distributors, and wholesalers, along with biotechnology firms, has been doing very well relative to other industries. - The report identifies various risks associated with global pharmaceuticals market. - This report identifies the key challenges faced by new players in Global space mining market. To understand the new ways of doing business by the Big Pharma, we have compared the marketing spend over R&D, market making strategies of Big Pharma and the rising litigations therefor. Sorry, but downloading is forbidden on this website. The average length of time required to develop a drug is estimated at 12-15 years, increasing over the years, mainly because of the tightening of the regulations associated with drug approval in different countries. Factors hindering growth include payer scrutiny and the threat of price control, and generic and biosimilar competition. … The WTO members would be allowed to determine the grounds on which such licences are granted and grant such compulsory licences. It contributes 8% in volume terms but only 1% in value terms to global pharmaceutical sales. It discusses the key forces reshaping the pharmaceutical marketplace, including the growing power of healthcare payers, providers and patients, and the changes required to create a marketing and sales model that is … Moreover, the global population aged 60 or above has almost tripled over the period 1950-2000 … The EY 7 Drivers of Growth is a framework that enables ambitious leaders to think differently about their businesses, unlock their full potential and successfully deliver their growth strategy. This declaration clarifies that the TRIPS agreement would not prevent WTO members from taking measures to protect public health and provides them the right to determine what constitutes a national emergency or circumstances of extreme urgency. The size of a pharmaceutical market increases as a result of various factors, the most prominent among which are discussed here. This complex multilayer network and material … Strong growth in the US market 4. Pharmaceutical Policy 2002 was announced, wherein the number of drugs under price control has been reduced from 74 (under DPCO 95). A 7 Drivers session will help you: Assess your current capabilities relative to your future aspirations; Gain insight into the practices of market-leading … Decrease in the number of innovative drugs under development 5. The introduction of regulatory norms by the Government of India favoring process patents coupled with the high import tariff and low prices of the domestic drugs has gone a long way in the development of the domestic industry against the multinationals operating in the country. Scope of Global Pharmaceuticals Industry Analysis and Trends 2023 Report - This report provides detailed information about Global pharmaceuticals market including future market forecasts for 5 geographic regions, 39 countries and 15 therapy areas. There has been a tremendous amount of growth in the pharmaceutical industry in recent years and the outlook continues to be positive for 2021. With the introduction of the Indian Patents Act and the Drug Price Control Order in 1970, Indian players discovered new avenues of growth, and consequently, the share of the multinationals declined. Retrieved from https://paperap.com/paper-on-value-drivers-pharmaceutical-industry/, Is Your Deadline Too Short? Clinical trials account for about half the total time involved in new drug discovery. The single most important driver for changes in the pharma industry is the ever-increasing cost of drug development. Key drivers of the UK pharmaceutical market 3-Jul-2018 Increasing demand for personalised treatments, an ageing population, the rise of new manufacturing technologies and ‘digital’ medicines (drugs with an ingestible sensor embedded in them), are some of the primary growth opportunities for UK pharmaceuticals companies according to a new report from Santander … It's Free! The social nature of today’s constantly connected patients and consumers means life sciences organizations must provide on-demand access to information and support. The growth in this market is predicted on the basis of various factors like market drivers, current and upcoming trends, current growth pattern, and market challenges. Want to get a price estimate for your Essay? 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