Global Pharmerging Markets 2017-2021
The immense growth potential in pharmerging market has driven large multinational pharmaceutical companies to focus on these regions by pursuing organic as well as in-organic routes. To make in-roads into the new geography, the large players usually take in-organic route through strategic expansion initiatives such as acquisitions and alliances. For instance, in December 2015, AstraZeneca entered into a deal with WuXi to acquire its biologics manufacturing facilities in China to expand locally.
Technavio’s analysts forecast the global pharmerging market to grow at a CAGR of 12.88% during the period 2017-2021.Covered in this report
The report covers the present scenario and the growth prospects of the global pharmerging market for 2017-2021. To calculate the market size, the report considers the revenue generated from the sales of pharmaceutical drugs in pharmerging markets, which are further divided into Tier I, II and III.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Pharmerging Market 2017-2021
Technavio recognizes the following companies as the key players in the global pharmerging market: AstraZeneca, GlaxoSmithKline, Pfizer, Sanofi, and Novartis
Other Prominent Vendors in the market are: Abbott Laboratories, AbbVie, Alexion Pharmaceuticals, Allergan, Amgen, Aspen, Astellas Pharma, Baxter, Bayer, Biogen, Boehringer Ingelheim, Bristol-Myers Squibb, Celgene, CSL Behring, Daiichi Sankyo, Dainippon Sumitomo Pharma, Eisai, Eli Lilly, Endo Health Pharmaceuticals, F. Hoffmann-La Roche, Fresenius, Gilead, Grifols, H. Lundbeck, Hospira, Johnson & Johnson, Kyowa Hakko Kirin, Mallinckrodt Pharmaceuticals, Menarini, Mitsubishi Tanabe Pharma, Mylan, Novo Nordisk, Otsuka, Shire, STADA Arzneimittel, Sun Pharmaceutical, Takeda Pharma, Teva Pharmaceutical Industries, UCB, and Valeant Pharmaceuticals
Commenting on the report, an analyst from Technavio’s team said: “Although the adoption of targeted therapies in emerging markets is low, it is expected to increase substantially during the forecast period, particularly in the long term. With the growing incidence of chronic diseases such as cancer, which requires specific therapies for the effective treatment, the adoption of targeted therapies is expected to witness substantial upward momentum. For instance, in India, the prevalence of cancer is expected to increase by 25%–40% in the next 10 years. The increasing awareness among physicians about the advantages of targeted therapies will certainly lead to an increase in adoption rates. Research studies done across the geographies have demonstrated that targeted therapy has increased the survival rate and the cure rate in cancer patients. These drugs are expected to work effectively in the treatment of various cancers such as lung cancer, breast cancer, chronic myeloid leukemia and lymphomas. Although, the cost of these targeted therapies is higher than the traditional ones, the growing awareness toward government subsidies and reimbursements could improve the adoption of such therapies even in the pharmerging nations. For instance, many states in India such as Gujarat, and Chattisgarh are providing such drugs at free of cost. Also, the leading players such as Novartis have implemented patient assistance programs to increase the affordability of Gleevec (a treatment for chronic myelogenous leukaemia) in India.”
According to the report, the pharmaceutical market in developed economies has reached its maturity phase and hence, is witnessing stagnance in terms of growth. This is primarily due the unfavorable economic conditions and patent expiries of innovator products. In order to maintain a healthy growth trajectory, the companies started exploring for new sources of revenue. In addition, the healthcare budget cuts in developed markets such as the US, has further driven the vendors' focus toward emerging economies. For instance, in March 2016, the US government repealed the Affordable Care Act, which results in the shutdown of health insurance, and financial assistance for insurance. This plan would end the Medicaid expansion by eliminating the federal funding that earlier enabled to expand health coverage to millions of adults. Further, the plan would radically restructure the traditional Medicaid program leading to more than $1.8 trillion decline in healthcare spending. As these markets have largely been oriented to reimbursement structure, the patients are not comfortable with out of pocket scenario. Such radical cuts in healthcare expenditure hurts the growth of pharmaceutical vendors despite being defensive in nature, as patients/healthcare providers look for cheaper alternatives.
Further, the report states that IP protection issues significantly influence the go-to-market strategies and tactics of the global pharmaceutical companies. For instance, the Indian government supports generic companies to provide end-users with affordable medication. The support is provided even when it goes against current patent laws and related rules of the World Trade Organization. For instance, Bayer HealthCare's Nexavar, a drug for hepatocellular carcinoma faces competition from Natco Pharma and due to the inability to afford the drug among the general population, the Indian government has given Natco, the manufacturing and marketing rights for the drug. Natco pays only 6% in royalties and is able to offer Nexavar approximately $170 per month, while Bayer HealthCare's Nexavar drug costs $5,500 per month. Bayer HealthCare eventually offered the drug at a reduced product price (almost 10% of original therapy costs), but on the condition that decreased prices are available only to those individuals diagnosed by licensed oncologists. The lack of proper guidelines for IP protection have fuelled the counterfeit products in emerging economies particularly in Africa. In Sub Saharan African countries, the share of counterfeit pharma drugs is close to 50%.
AstraZeneca, GlaxoSmithKline, Pfizer, Sanofi, Novartis, Abbott Laboratories, AbbVie, Alexion Pharmaceuticals, Allergan, Amgen, Aspen, Astellas Pharma, Baxter, Bayer, Biogen, Boehringer Ingelheim, Bristol-Myers Squibb, Celgene, CSL Behring, Daiichi Sankyo, Dainippon Sumitomo Pharma, Eisai, Eli Lilly, Endo Health Pharmaceuticals, F. Hoffmann-La Roche, Fresenius, Gilead, Grifols, H. Lundbeck, Hospira, Johnson & Johnson, Kyowa Hakko Kirin, Mallinckrodt Pharmaceuticals, Menarini, Mitsubishi Tanabe Pharma, Mylan, Novo Nordisk, Otsuka, Shire, STADA Arzneimittel, Sun Pharmaceutical, Takeda Pharma, Teva Pharmaceutical Industries, UCB, Valeant Pharmaceuticals.