Introduction
Covid-19 impact on Pharmaceutical Industry
It will take decades altogether for the world to come out of the jolts of the Covid-19 pandemic. No wonder the largest cause of spending on medicine is going to be Covid-19 vaccinations themselves. The healthcare industry is at the core of treatments, vaccinations, hospital supplies, and many more, it cannot spare itself from the realms of transformation. Though the vaccines against the various variants of Covid-19 virus have created additional revenue streams, many other segments of the pharmaceutical industry have suffered negative growth because of limited access to healthcare systems.
Global pharmacy- An Overview of the Pharmaceutical Industry
Though the pharmaceutical market is of controlled nature, it is highly regarded for interruptions by innovative drugs and expiring patents simultaneously.
Growth in the Pharmaceuticals market is mainly driven by:
Innovative drugs
A rising demand for healthcare, specifically in the emerging countries
Revenue generated by prescription drugs is way more than OTC pharmaceuticals
Prescription drug market is led by original products majorly
It is highly unlikely that increasing number of OTC products, generics, & biosimilars can offset the remarkably higher prices of original products
The most successful drugs commercially called as “blockbusters,” generate more than US$1bn annually.
In this industry, single products can play a major role, which makes it a leader of an entire segment.
Research and development with prime requirements of investments and surrounded by factors of high uncertainties and risk
How much is the pharmaceutical industry worth in 2022?
The global pharmaceutical industry is expected to generate a whooping figure of US$ 1,120,242 million in 2022. Analyzing the growth, a market volume of US$ 1,397, 639 million, is projected by 2026.
Quick knowledge – Which drug forms the largest market segment?
Answer – Oncology Drugs
Answer – Oncology Drugs
Keeping in view of the varied market trends for delivery in the global pharmaceutical industry, they can be divided into the following segments:
1. Economic
I. Economic Inflationary and Currency Stability – A major cause that has affected drug affordability. The cost of raw materials, other basic and active ingredients, and intermediaries is steering the cost of pharmaceutical products globally. Also, the current stock of trends does not show this price to come on the reduction grounds. However, the silver lining which is clear is the push to set new price control regulations in the affected nations.
Do you know – One of the major risk events in 2021 with an impact on market access in Latin America is drug pricing transparency and pricing negotiations.
II. Cost-containment policies – Costly cells & gene therapies and the usage of biosimilars, a costlier version of branded biologic medicines, is on the increasing slope in the US.
One of the main reasons behind drug price control in Latin America is inflationary pressure.
III. International Referencing Pricing –To excel at launch sequencing and product revenues globally, International Referencing Pricing, or IRP, is a significant move. With almost 100 countries adopting this practice, the goodness of this effect is snowballing across other nations.
2. Business
There is a neck-to-neck fight in many countries to get the debt cleared from the payers.
The U.S. is the market leader followed by Europe, Japan, & China
3. Technology
Health Technology Assessments or HTAs is a trend witnessed more in the year 2022. Newer entrants like Peru and Slovakia, though still in the planning phase would come up with a plan that is short to medium term. Europe is displaying intensifying patterns of joint clinical Health Technological Assessments and procurement alliances.
4. Adherence to policies and regulations
The importance of regulatory compliance in the pharmaceutical industry goes unsaid, as this is the backbone of ethical practices. It is highly sought in this sensitive industry, as it deals with the matters of life and death of humans. Compulsory licensing was done during the pandemic period to safeguard the interests of other therapeutic categories. Also, the regulations supporting price transparency are continuously booming at various national and international levels. Strategies of price cuts and discounts have slowly become apparent in 2022.
5. Product-based
Orphan medicines are one such area of disruptive innovation in which the complexities are continuously increasing. The leading factors being high price tags and the surety of effectiveness.
6. Supply chain
The supply chain has faced tremendous pressure owing to the enormous demands of Covid-19. Shortage in supplies of oxygen has been observed globally. Also, an alarming semiconductor shortage in the USA has led the manufacturers of ventilators, glucose monitors and other items which require semiconductors as the raw material. Productivity has suffered a lot because of the pressure to produce various items within a brief span of time. This has also placed hazards on the safety protocols and patient care.
“Supply Chain Delays Will Spread Well Into 2022 and Possibly 2023” – C. Bustos, Yahoo Finance, September 2, 2021.
Will Marketing Trends for Pharmaceutical Industry Ever Rule the World?
To create a brand, take it to the heights of success, and to maintain are three different things, but deeply connected to each other. With the continuing stretch of pandemic, competitive market trends and cut-throat brand-promotional efforts have made it increasingly difficult for brands to establish themselves in the market. Irrespective of the size of your organization, it is highly likely that every organization today wants to maintain their position and gradually wants to improve.
About MedicoLeads
It is a world of smart work, rather than hard work. B2B healthcare marketers, including pharmaceutical products manufacturers, service providers, and others, rely heavily on a responsive healthcare database provider today. We provide the most reliable and affordable Pharmaceutical Email List. Our client’s success is crucial to us globally. We give our best efforts to provide validated profiles, segmentation options, and excellence of quality at par with the industry standards.
Conclusion
Some key pricing and Market Access trends ruling the industry in 2022:
EU Net Price Disclosure: This may be a tug-of-war between the industry and the Payers. WHO must assure the pharmaceutical industry about disclosed prices leading to reduced cost of medicines.
The robust progress of a Joint EU HTA: It is projected that a nexus will significantly lead to lesser work for local HTA agencies and pharmaceutical organizations. This would make way for faster patient access.
Continuously strengthened Cross Border Collaboration for Competitive Pricing Negotiations: For example, Nordic Pharmaceutical Forum between Iceland, Norway, Sweden and Denmark. This mainly concerns arriving at competitive prices for high-cost treatments or orphan diseases.
Effective pricing and reimbursements ensuring Gene Therapies in the European Union
Just like the last couple of years, there is a projected pattern on the increasing side of post-marketing evidence collation from HTA agencies, justifying pricing, discussions and evaluations.
EU Net Price Disclosure: This may be a tug-of-war between the industry and the Payers. WHO must assure the pharmaceutical industry about disclosed prices leading to reduced cost of medicines.
The robust progress of a Joint EU HTA: It is projected that a nexus will significantly lead to lesser work for local HTA agencies and pharmaceutical organizations. This would make way for faster patient access.
Continuously strengthened Cross Border Collaboration for Competitive Pricing Negotiations: For example, Nordic Pharmaceutical Forum between Iceland, Norway, Sweden and Denmark. This mainly concerns arriving at competitive prices for high-cost treatments or orphan diseases.
Effective pricing and reimbursements ensuring Gene Therapies in the European Union
Just like the last couple of years, there is a projected pattern on the increasing side of post-marketing evidence collation from HTA agencies, justifying pricing, discussions and evaluations.
