Global Pharmaceuticals Market
Responsible for the development, production and marketing of medications, the global pharmaceutical market has experienced significant growth in recent years and as of end-2019, was valued at about USD 1.25 trillion, with close to 50% of that in North America and close to USD 100 billion in Oncology. Further growth is expected to 2025
with a CAGR of 3.1%.
The pharma industry is undergoing a myriad of changes. Therefore, success in today’s pharmaceutical marketplace largely depends on companies’ ability to continually reassess strategic direction, move with agility, and anticipate and adapt to changes. Businesses must not only keep a close watch on the pharma industry trends, but equal emphasis should be given to tackling the upcoming challenges. Some of the key challenges identified whilst analysing the pharma industry include:
- Increasing instances of chronic diseases are placing greater pressure on the healthcare budgets
- Healthcare policy makers are increasing pressure on doctors regarding what to prescribe
- Growing demand for medicines in emerging economies
- Regulators are becoming increasingly cautious while approving new and innovative medicines
- Pharma-economic performance is measured in order to insist on outcome-based pricing
Despite these challenges, there are several exciting pharma industry trends underway. Infiniti Research’s pharmaceutical industry analysis reveals that companies in this sector must gear up for a rise in prevention over treatment; much greater customisation or personalised medicine, as well as a greater shift towards nanotechnology, 3D printing, body sensors and artificial intelligence.
Cancer drugs will continue to dominate the growth in the pharma market but other therapeutic areas that will see a change will be the democratisation of the market for mAbs (monoclonal antibodies) and the ramping up of cell and gene therapy.
The rise in these and other new treatments will generate interest in innovative forms of drug delivery, and it will ultimately be the specialty sectors that drive mergers and acquisitions.
Pharmaceutical market drivers
There are some other interesting drivers in the pharmaceutical market which are going to affect both growth and direction. Healthcare systems are becoming a lot more patient-centric. A couple of years ago healthcare companies needed to include a reference to patient-centric in their business strategy but there wasn’t a need to act upon it. Now, as regulations motivate more companies to explore digital solutions, it’s going to be the “patient-centric” approach that drives digital. In addition, manufacturers will need to ensure that their supply chains become more patient-centric as well, with a need for the supply chain strategy overall to evolve. Other notable manufacturing innovations are the continued advancement in equipment technology and the need for Real World Evidence (RWE) in drug studies.
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