In this world of uncertainty and chaos, the growth of any market is difficult. But despite all of that, the pharmaceutical market is growing at a rate of 5.8%, according to the reports given by various research companies. The global market for pharmacy was worth almost 934.7 billion dollars in 2017 and is expected to reach at 1170 billion dollars in 2021.
Factors affecting the growth of pharmaceutical market-
On-going change in environment is one of the major factors, along with the drastic change in economy, society, politics and shift of technology in this world, which helps the pharmaceutical market to grow at such a great rate. Drugs are one of the most important part in our lives, so following factors are affecting the demand of pharmaceutical products:
● GDP growth in the countries of China and India by over 6%
● Minimised price of the drugs in the America
● Lowering of regulatory barriers for the new products in America
● Increasing pollution problems which leads to many types of diseases
● A vast population of elderlies and will to live longer
As a result of all this, the healthcare department will rise to 1427 dollars to 1137 dollars per capita by 2021 from 2017.
Disease prevalence, consumer attitude, drug affordability and various government policies are the driving factors for growth of this market. Along with these factors, following factors pay an important role in increasing the empire of pharmaceuticals:
▪ Affordability- It is related to cheaper drug prices and income of the consumer.
▪ Government policies- Various government policies affect the quality of consumers and determine regulation which can be a challenge during launching new products.
▪ Disease frequency- This factor is related to the size of consumers, age, genetic factors and behaviour of disease in the sense of infection. Along with the free lifestyle of the majority population. This causes the outbreak of unwanted diseases like Corona virus.
▪ A major supply factor- The availability of an appropriate medical treatment, which may be a matter of significance and quality.
Challenges before Pharmaceutical Market-
Despite the massive amount of potential in many new drugs and pharmaceutical products, many companies are holding back the release of such product. This is one of the reasons for the slow rate of growth of the Pharmaceutical market. Companies are minimising their R and D investment, which is not great for the market. For example, despite the huge potential of the drug effects for the Alzheimer’s disease, Pfizer and many other companies have cut down the project or postponed them, just because of low consumer rate and therefore high failure rates. It takes almost $2 billion average cost for developing new drug, and falling returns on investment- down to 3.2% in 2017 from 10.1% in the year 2010. These are restraining the launch of new products and breakthroughs, preventing the boost in the pharmaceutical market.
Top Pharmaceutical Companies-
In the global market companies like Novartis, Sanofi, Pfizer, Hoffman-La Roche and Gilead are pioneering companies, holding the ranks from first to fifth respectively. Altogether sales of these companies contribute to almost 30 % of the Global economic market, making the market lightly fragmented. But individually these companies have their own specifications like Sanofi leads in the metabolic disorders and cardiovascular segments while Hoffman-La Roche is a leading company in large oncology drug market.
With all its pros and cons the pharmaceutical company is the future of the economical market and thus becoming the future of this world.
