Market Report – Pharmaceutical Industry

 

INTRODUCTION TO THE PHARMACEUTICAL INDUSTRY

The pharmaceutical industry is responsible for the development, production and marketing of medications. Thus, its immense importance as a global sector is inarguable. In 2014, total pharmaceutical revenues worldwide had exceeded one trillion U.S. dollars for the first time.

More than any other industry, the pharmaceutical sector is highly dependent on its research and development segment. Some pharmaceutical companies invest 20 percent and more of their revenues in R&D measures. This share can be significantly higher at small, research-specialized companies.

MARKET SIZE OF THE PHARMACEUTICAL INDUSTRY

The global market for pharmaceuticals reached $1.2 trillion in 2018, up $100 billion from 2017, according to the Global Use of Medicines report from the IQVIA Institute for Human Data Science and also a report from statista.com.

The factors that affect the pharmaceutical market size include disease prevalence, drug affordability, consumer attitudes, government policies and some supply-side factors:

  • Disease prevalence is related to population size, age, genetic inheritance and behavior (infectious disease incidence is lower where sanitation practices are better; sedentary lifestyles also encourage chronic disease).
  • Affordability is related to income but also to drug prices.
  • Consumer attitudes include willingness to use alternative therapies or distrust of taking drugs.
  • Government (and insurance company) policies affect reimbursement and who the payer is. Other government policies determine regulation, which can be a significant barrier to the launch of new treatments.
  • A major supply-side factor is availability of an appropriate treatment, which may be a matter of quantity, as in an epidemic, or of drug discovery and development.

World Pharmaceutical Sales by Region

The pharmaceutical industry is best known for manufacturing pharmaceutical drugs which aim to diagnose, cure, treat, or prevent diseases. The pharmaceutical sector represents a huge industry, with the global market valuing in at nearly one trillion U.S. dollars. The best known top global pharmaceutical companies are Pfizer, Merck and Johnson & Johnson from the U.S., Novartis and Roche from Switzerland, Sanofi from France, etc. Accordingly, North America and Europe are still the largest global submarkets for pharmaceuticals.

New pharmaceutical products

The goal of R&D is to produce new drugs and compounds. Globally, the U.S. pharmaceutical industry created the largest number of new drugs and compounds between 2013 and 2018, followed by Europe[1]. Among U.S. pharmaceutical companies, there are various levels of success for new drugs depending on the phase of development.

KEY SEGMENTS IN THE PHARMACEUTICAL MARKET

The largest pharma market globally is for musculoskeletal drugs. These are treatments for diseases such as rheumatoid- and osteo- arthritis, osteoporosis, carpal tunnel syndrome, tendonitis, rotator cuff tear, muscular dystrophy, myasthenia gravis, lupus erythematosus and others. Major drugs in this segment include Piroxicam Glaxo, Dolonex, Felden, and Piroxicam Pfizer. The segment accounted for 14% of the global total. Cardiovascular, oncology and ant-infective drugs are the second third and fourth largest markets.

 

COMPETITIVE LANDSCAPE & TOP PHARMACEUTICAL COMPANIES

Top pharmaceutical companies include:

  • Novartis
  • Sanofi
  • Pfizer
  • Hoffman-La Roche
  • Gilead

MARKET SHARE OF THE TOP PHARMACEUTICAL COMPANIES

The top ten pharmaceutical companies by market share in 2018 are;

  1. Pfizer Inc – 5.6%
  2. Novartis – 5.44%
  3. F Hoffmann-La Roche Ltd – 4.69%
  4. Merck & Co Inc – 4.44%
  5. Johnson & Johnson (J&J) – 4.27%
  6. GlaxoSmithKline Plc – 4.19%
  7. Sanofi – 4.11%
  8. AbbVie Inc – 3.43%
  9. Bayer AG – 2.84%
  10. Eli Lilly and Co – 2.57%

 

 

NEW SALES MODELS IN PHARMACEUTICAL INDUSTRY

The pharmaceutical industry is undergoing a commercial evolution. Traditional sales and marketing tactics — such as the classic in-person sales rep model — have declined, straining under the pressure of rising costs, new regulations, increasing provider consolidation, changing operating models, and greater market complexity.

It has been noted that many companies have simply tweaked their old models to adapt to a changing market in place of implementing new strategies, full commitment and buy in to New Commercial Models (NCMs) is crucial for success.

NEW MODELS TESTED:

  • KAM
  • Clinical Sales Force
  • Patient/Physician Portals
  • Social Media
  • Dynamic Channel Management
  • Product/ Budget Outcome Models
  • Product Specific Value Added Services
  • Above The Brand Services
  • Joint Research/ Analytics With Payers & Providers
  • Disease Management Services
  • Innovative Pricing & Contract Structure

Recent marketing strategies for pharmaceutical companies

  1. Marketing through influencers
  2. Messaging apps for pharma
  3. Chatbots for pharma
  4. Drug Discount Cards
  5. Content Marketing

TECH ADVANCEMENTS IN PHARMACEUTICALS

  1. Precision medicine
  2. mHealth sensors
  3. 3D printing
  4. Nanotechnology
  5. Nanobots
  6. Synthetic 3-D tumors
  7. Microenvironments
  8. Advanced instrumentation
  9. Bioinformatics
  10. Medication Therapy Management
  11. Utilization of supercomputers to make complex decisions
  12. Drug experimentation on simulation models
  13. Robotic surgery
  14. Wireless brain sensors

 

For the full market report please contact info@five4.co.uk for further details.

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