trend in pharmaceutical market

7/29/2019 Trend in Pharmaceutical Market

http://slidepdf.com/reader/full/trend-in-pharmaceutical-market 1/15

qwertyuiopasdfghjklzxcvbnmqwerty

opasdfghjklzxcvbnmqwertyuiopasdfg

klzxcvbnmqwertyuiopasdfghjklzxcvb

nmqwertyuiopasdfghjklzxcvbnmqwe

yuiopasdfghjklzxcvbnmqwertyuiopa

dfghjklzxcvbnmqwertyuiopasdfghjklz

vbnmqwertyuiopasdfghjklzxcvbnmq

wertyuiopasdfghjklzxcvbnmqwertyu

pasdfghjklzxcvbnmqwertyuiopasdfgh

klzxcvbnmqwertyuiopasdfghjklzxcvbmqwertyuiopasdfghjklzxcvbnmqwer

uiopasdfghjklzxcvbnmqwertyuiopasd

ghjklzxcvbnmqwertyuiopasdfghjklzxvbnmqwertyuiopasdfghjklzxcvbnmrt

uiopasdfghjklzxcvbnmqwertyuiopasd

ghjklzxcvbnmqwertyuiopasdfghjklzx

Trend In Pharmaceutical Market

SAMIK GHOSH

JSB BATCH (11-13)

Sem 6th




Internet-savvyphysicians are no longer

an emerging group –

nearly all physicians are

online for professional

purposes weekly or

more.

Introduction

Technology has prompted drastic changes in the marketing world over the past decade, andpharmaceutical marketing has not been excluded from this evolution. Faced with shifting

consumer and physician media preferences and shrinking budgets - what is a smart

pharmaceutical marketer to do? The task is best summed up by the words of English naturalist

Charles Darwin, “It is not the strongest of the species that survives, nor the most intelligent that

survives. It is the one that is the most adaptable to change.” So change you must. The following

paper overviews the latest consumer and physician digital health trends, explores digital

marketing examples, and shares helpful resources for staying up-to-date on the latest digital

pharma news and information.

Digital Health Trends Physician Market Trends

The first and still the most prevalent, pharmaceutical drug promotions were aimed at the

gatekeepers of the prescription pad - physicians. Traditionally, pharmaceutical companies have

deployed sales reps armed with product information and freebies to promote products to

doctors. But technology trends and changing media

preferences are forcing pharmaceutical companies to reassess

how they reach and build relationships with physicians.

In the past, doctors were limited to offline materials like

journals and references for accessing medical information and

news. But those days are long gone, and with just a click of a

mouse or touch of a screen, physicians have access to all of

the resources they need to stay abreast of the latest

knowledge in the field. Internet-savvy physicians are no longer

an emerging group – this market is at a saturation point, as

nearly all physicians are online for professional purposes

weekly or more. In fact, the average physician now spends a

full work day (eight hours) per week using the Internet for

professional reasons, a substantial jump from only 2.5 hours in 2002. The trend of shifting to

digital channels is expected to continue, with physicians reporting that they expect to increase

their use of online resources in the near future. Professional content that have been feeling

“the shift” the most are clinical textbooks/references, journals, conferences, news, and

continuing medical education (CME).




Mobile technology has played a significant role in increasing physicians’ dependency on online

resources – 64% of doctors own smartphones and are using them to supplement their desk or

laptop computer usage to be “always on.” Also, mobile devices help physicians to access clinical

resources at multiple points throughout their day, even to at the point of care. Currently,

physicians prefer to conduct easy tasks such as information-checking on mobile devices, while

leaving more complex activities like CME for completion on their PCs. But as mobile browsing

capabilities improve, physicians will start to use smartphones for more advanced activities than

just reference purposes.

Physician engagement in Web 2.0 has been one of the hottest topics over the past few years.

As a group, physicians have acclimated themselves to advanced online activities, such aswatching streaming video and listening to podcasts, at a much faster rate than consumers.

Doctors are also catching the social media fever. Many are collaborating in online communities

designed specifically for healthcare professionals; participation in these networks doubled

between 2008 and 2009. Just as the professional channel mix is evolving, so is the traditional

physician-sales rep relationship. Physicians are no longer limited to in-person details for

information and updates on pharmaceutical products, but can easily seek out this type of

information at any time via the Internet. In light of this, pharmaceutical companies are offering

physician online customer services such as customer service portals, live video reps, interactive

detailing, and e-sampling. Sales reps are also “digitalizing” their in-person visits with tools suchas tablet PCs.




Consumer Market Trends

Unlike physician marketing, DTC advertising in the U.S. is a fairly recent development, only just

about to reach the quarter-century club. And the DTC advertisements that we know today have

only cropped up in just over the past decade, after the FDA amended its legislation on the

amount of risk information required for drug companies to append to promotional material.

Similar to the physician market, an emerging breed of eHealth consumers – those using digital

sources for health – is transforming direct-to-consumer (DTC) marketing.

Like in the case of the physician market, the consumer channels mix has been shifting

significantly towards digital over the past decade. An ever-increasing plenitude of media

sources has ultimately given individuals the upper hand in controlling their information

consumption, lessening advertisers’ ability to reach a concentrated consumer mass through anyone channel. Television, magazines, and newspapers no longer dominate the news and

entertainment world as they once did. In fact, less

than half of U.S. adults report to watch all of their

television programs lives on their TV set, indicating

the growing popularity of DVR, online video, and

other alternative viewing channels. Following suit

with the overall consumer channel shift, individuals

of all ages are turning to the Internet as tool to

empower healthcare decisions. This eHealthconsumer market is not yet at the point of saturation, but still is a substantial 60% of the U.S.

adult population. Health 2.0 is one of the hottest areas of online health. Over 60 million U.S.

adults consume or contribute health-related social media content, such as blogs, message

boards, chat rooms, online patient support groups and other networks. Patient online rating

and reviewing of doctors, health insurance plans, hospitals, and prescription drugs is one of the

fasting growing Health 2.0 activities - and is helping consumers to compare experiences and

become more empowered in their personal healthcare decisions. Consumers have not reached

the same adoption levels as physicians when it comes to smartphones and advanced mobile

technologies beyond just the cell phone. But an early adopter group of mHealth (mobile health)consumers is emerging, as already over 10 million consumers use mobile devices for health and

medical purposes. The mHealth trend has been largely driven by a plethora of new health-

related iPhone applications, ranging from weight loss trackers to diabetes management tools to

medication dosage references.

Less than half of U.S. adults

report to watch all of their

television programs lives on

their TV set.




Major Industry Trends

Healthcare and pharmaceuticals are two distinct industries, but they are interdependent andare subject to similar trends, which is why they are covered together in this profile. Both are

benefiting from ageing populations in many advanced economies, and various developing

countries, such as China. In addition, important medical discoveries, including the decoding of

the human genome, are fueling scientific advances, and facilitating the release of new drugs

and treatments.

The Impact of the 2008 Recession and Growth through

2011

The investment community generally regards healthcare and pharmaceutical companies as

“defensive” stocks, because they tend to be relatively immune to the vagaries of the economic

cycle. While consumers may cut back on purchases of many discretionary items during a

recession, most people regard their health as a priority. In addition, while individuals may cut

back on private healthcare in times of economic hardship, this simply increases demand for

healthcare services provided by the public sector. Most healthcare spending in the Western

world is funded by governments, and such spending is highly sensitive in political terms. Most

democratically elected governments prefer to find savings in areas other than healthcare forfear of losing votes. Clearly, however, even healthcare spending comes under pressure during a

severe economic recession.

In both Europe and the United States, spending on health and government support for

healthcare for the vulnerable and the elderly is cited, along with state pension commitments, as

one of the more intractable drivers behind growing and unsustainable public sector deficits.

Beyond just looking up general health resources, 100 million consumers are online specifically

for pharmaceutical or prescription drug information. Individuals obtain this information from a

variety of sources, including blogs, insurance sites, general health portals, government sites,

Wikipedia, online communities, and of course the corporate and brand sites of the product

makers themselves.




Online health and pharma digital trends are leading to better informed, more empowered

patients, and are impacting physician-patient interactions. Virtually all U.S. physicians report

that at least some of their patients bring health information they found online to an

appointment, and more than two-thirds of physicians believe that this trend is a good thing.

Additionally, the majority of physicians report they spend more time with a patient as a resultof the information they brought in to discuss. Traditional doctor-to-patient lectures are giving

way to two-way conversations between physicians and informed eHealth Consumers.

Rx Connect™ delivers comprehensive brand information with digital media---at the pharmacy

shelf next to targeted OTC products. Consumers get the information they need about the

prescription product as well as the condition it treats---facilitating a more informed patient-

physician dialogue.




Market Analysis

Healthcare Spending

The total global expenditure for health is now more than US$4.7 trillion a year, according to the

World Health Organization, and health expenditure as a percentage of GDP has been increasing

among all major economies. Spending on healthcare varies widely from country to country, as

do outcomes. Nor is there necessarily a correlation between the amount of money spent and

the effectiveness of the healthcare system. The United States spends more on healthcare than

any other country, in both relative and absolute terms, yet its healthcare system scores poorly

in terms of its overall performance, according to the Commonwealth Fund Commission, a US

private foundation that supports independent research on healthcare issues. The Fund

produced a report on the performance of the US health system in 2008 (“National scorecard onUS health system performance”). The scorecard aimed to measure and monitor healthcare

outcomes, quality, access, efficiency, and equity in the United States. It ranked the United

States last out of 19 countries on a measure of mortality amenable to medical care.This poor

performance may reflect the nature of healthcare provision in the United States. The country

has several types of privately and publicly funded insurance plans that provide healthcare

services. However, the private sector dominates healthcare and the United States is the “only

wealthy, industrialized nation that does not ensure that all citizens have coverage” (that is,

some kind of insurance), according to the Institute of Medicine, a nonprofit organization for

science-based advice on matters of biomedical science, medicine, and health.

By contrast, a publicly funded healthcare system, the NHS, dominates healthcare in the United

Kingdom, accounting for more than 80% of healthcare spending in the country. Founded in

1948, it aims to provide a free, comprehensive healthcare service, with delivery at the point of

need, regardless of the ability to pay. It is the world’s largest publicly funded health service, and

claims it is also “one of the most efficient, most egalitarian, and most comprehensive.” Yet it

has many critics, who argue that it is inefficient and overly bureaucratic.

Other countries fund their health services in a variety of ways. According to Key Note Ltd, a UK-

based market-research company, the Netherlands operates a national insurance market for its

16 million residents. Plans may operate on a for-profit or nonprofit basis. The insurance marketis highly concentrated, with the top five plans accounting for 82% of enrolment. Plans typically

offer coverage in all areas of the country and include all providers, although selective

contracting is allowed. Children are covered in full through public funds. Premiums charged for

adults represent 50% of the expected annual costs. By contrast, according to Key Note, the

Swiss insurance system, which covers 7.5 million people, is highly decentralized. Only nonprofit




insurers may participate in the scheme, and Swiss premiums vary widely according to the

health risks of insured pools across the country, and within regions.

Table 1.

Total healthcare spending as a percentage of GDP, 2012.

(Source: OECD,www.irdes.fr/EcoSante/DownLoad/OECDHealthData_FrequentlyRequestedData.xls)

Japan spends around 8.1% of its GDP on healthcare, almost half the amount of the United

States. Yet the Japanese have the longest healthy life expectancy on the planet. Diet and

lifestyle clearly play a key role, but the country’s universal healthcare system may also be an

important factor. Everyone in Japan is required to take out a health-insurance policy, either at

work or through a community-based insurer, according to Key Note. The firm adds: “The

government pays for those who are too poor. However, 80% of Japan’s hospitals are privately

owned—more than in the US—and almost every doctor’s office is a private business. The

Japanese Health Ministry tightly controls the price of healthcare, down to the smallest detail.

Every two years, the healthcare industry and the health ministry negotiate a fixed price for

every procedure and every drug.”

The US-based National Bureau of Economic Research conducted a study of ten OECD countries

and it points out that healthcare expenditure has been growing at a faster rate, often

considerably faster, than per-capita income. In the United States, healthcare expenditure hastripled as a share of GDP since 1950, from 5% to 15% of GDP. The NBER’s study found that the

primary cause of the continued ramping up of healthcare costs was the provision of increased

healthcare benefits. It points out that pushing up health benefits faster than per capita tax and

income growth is clearly unsustainable, but that major economies, the United States in

particular, currently show little sign of reining in the upward march of benefits, despite huge

cost increases. If this keeps up the United States will see a doubling in healthcare costs as a

Country Healthcare spending, % of GDP Australia 8.9

Canada 10.1

France 11.0

Germany 10.4

Italy 8.7

Ireland 7.6

Japan 8.1*

Portugal 10.2*

Spain 8.5

Sweden 9.1

Switzerland 10.8 (est.)United Kingdom 8.4

United States 16.0

http://www.irdes.fr/EcoSante/DownLoad/OECDHealthData_FrequentlyRequestedData.xls

http://www.irdes.fr/EcoSante/DownLoad/OECDHealthData_FrequentlyRequestedData.xls




percentage of GDP within the next 20 years, and a tripling in the next 40 years. No country

could afford that, it points out, so the dilemma of what level of healthcare is appropriate

remains to be resolved.

Global R&D Spending ($ Billions) 1996-2009

Top 15 R&D Expenditure ($ Billion) 2011

COMPANY Money(Billion)

Novartis $9.58

Pfizer $9.1

Roche $8.8

Merck $8.4

Johnson & Johnson $7.5

GlaxoSmithKline $6.29

Sanofi-aventis $6.24

AstraZeneca $5.5Eli Lilly $5.00

Bristol-Myers Squibb $3.8

Abbott lab. $3.7

Takeda pharma $3.48

Boehringer ingelheim $3.2

Daiichi sankyo $2.2




Astellas pharma $2.5

Total: Over $85 Billion

Overview of Pharmaceutical Industry

The Indian Pharmaceutical Industry currently tops the chart amongst India’s science-based

industries with wide ranging capabilities in the complex field of drug manufacture and

technology. The Indian Pharmaceutical Industry ranks very high amongst all third world

countries, in terms of technology, quality and the vast range of medicines that are

manufactured.

The Pharmaceutical industry has grown from mere US$ 0.3 billion turnover in 1980 to aboutUS$ 21.73 billion in 2009-10. The country now ranks 3 rd in terms of volume of production (10

per cent of global share) a 14th

largest by value (1.5 per cent of global share). One reason for

lower value share is the lowest cost of drugs in India ranging from 5 per cent to 50 per cent less

as compared to developed countries. Indian pharmaceutical industry growth has been fuelled

by exports and its products are exported to a large number of countries with a sizeable share in

the advanced regulated markets of the US and Western Europe.

Many Indian companies maintain highest standards in Purity, Stability and International Safety,

Health and Environmental (SHE) protection in production and supply of bulk drugs even to

some innovator companies. This speaks of the high quality standards maintained by a large

number of Indian Pharma companies as these bulk actives are used by the buyer companies inmanufacture of dosage forms which are again subjected to stringent assessment by various

regulatory authorities in the importing countries. More of Indian companies are now seeking

regulatory approvals in USA in specialized segments like Anti-infective, Cardiovascular, CNS

group. Along with Brazil & PR China, India has carved a niche for itself by being a top generic

Pharma player.

Increasing number of Indian pharmaceutical companies have been getting international

regulatory approvals for their plants from agencies like USFDA (USA), MHRA (UK), TGA

(Australia), MCC (South Africa), Health Canada etc. India has the largest number of USFDA-

approved plants for generic manufacture. Considering that the pharmaceutical industryinvolves sophisticated technology and stringent "Good Manufacturing Practice (GMP)

requirements, major share of Indian Pharma exports going to highly developed western

countries bears testimony to not only the excellent quality of Indian pharmaceuticals but also

its price competitiveness. More than 50 per cent share of exports is by way of dosage forms.

Indian companies are now seeking more Abbreviated New Drug Approvals (ANDAs) in USA in

specialized segments like anti-infective, cardio vascular and central nervous system groups.




Exports

India currently exports drug intermediates, Active Pharmaceutical Ingredients (APIs), Finished

Dosage Formulations (FDFs), Bio-Pharmaceuticals, Clinical Services to various parts of the

world.

Export of Drugs and pharmaceuticals from 2007-08 to 2009-10 are given below:

YearExports

(US$ billions)

Growth

(in percent)

2007-08 6.3 14.4

2008-09 8.6 35.7

2009-10 9.1 5.9

Source: Directorate General of Commercial Intelligence and Statistics (DGCIS) Kolkata

The domestic Pharma Industry

The domestic Pharma Industry has recently achieved some historic milestones through a

leadership position and global presence as a world class cost effective generic drugs'

manufacturer of AIDS medicines. Many Indian companies are part of an agreement where

major AIDS drugs based on Lamivudine, Stavudine, Zidovudine, Nevirapine will be supplied toMozambique, Rwanda, South Africa and Tanzania which have about 33 per cent of all people

living with AIDS in Africa. Yet another US Scheme envisages sourcing Anti Retrovirals from some

Indian companies whose products are already US FDA approved.

Many Indian companies maintain highest standards in Purity, Stability and International Safety,

Health and Environmental (SHE) protection in production and supply of bulk drugs even to

some innovator companies. This speaks of the high quality standards maintained by a large

number of Indian Pharma companies as these bulk actives are used by the buyer companies in

manufacture of dosage forms which are again subjected to stringent assessment by various

regulatory authorities in the importing countries. More of Indian companies are now seekingregulatory approvals in USA in specialized segments like Anti-infectives, Cardiovasculars, and

CNS group. Along with Brazil & PR China, India has carved a niche for itself by being a top

generic Pharma player.

Increasing number of Indian pharmaceutical companies have been getting international

regulatory approvals for their plants from agencies like USFDA (USA), MHRA (UK), TGA

(Australia), MCC (South Africa), Health Canada etc. India has the largest number of USFDA -




Conclusion

Pharmaceuticals has emerged as one of the leading industries in the Indian Inc., with the

domestic market showing an unprecedented growth of around 9% to generate revenue of

about INR 554.5 Billion (US$ 11.1 Billion) in FY 2009. This dramatic growth in the Indian

pharmaceutical industry can be attributed to several factors such as growing middle class

population, rapid urbanization, increase in lifestyle-related diseases and acceptance of healthinsurance. Besides, the product patent regime has provided ample support to the industry to

sustain its growth pace despite the global economic downturn. Generic is emerging as one of

the leading segments to be benefited by many drugs going off-patent in due course of time.

According to our new research report “Booming Pharma Sector in India”, the Indian

pharmaceutical industry is projected to show double-digit growth in near future owing to rise in

pharmaceutical outsourcing and consolidation of highly fragmented industry. As exports from

major part of the pharmaceutical industry in India, leading players have started expanding their

reach towards the West. Thanks to investments in R&D and thriving for more and more ANDA

filings, the clinical trials market is expected to grow at blistering pace in coming years. Tosupport this evidence, we have done an extensive research and analysis of various segments of

the Indian pharmaceutical market. These segments include: Domestic & Export Market,

Branded & Generics Drugs, Formulations & Bulk Drugs, etc.

The baseline for optimistic future outlook of the pharmaceutical market is improvement in

access to medicines of Indian population. Emerging sectors like biogenerics and pharma

packaging will also pave the way for the pharmaceutical market to continue its upward trend

over the forecast period (FY 2010- FY 2013).

The report provides thorough statistical and analytical overview of the Indian pharmaceutical

market. It contains information about past, present and future trends, with focus on entirestructure, composition and working of the pharmaceutical market. The report extensively

discusses opportunities and challenges expected to arise within and outside the pharmaceutical

market. The report also analyzes emerging sectors, regulatory environment and distribution

system to identify strength and weaknesses of the pharmaceutical market. It has thoroughly

examined current market trends; industrial developments and competitive landscape to enable

clients understand the market structure and its progress in coming years. It also gives a brief




overview of demographics and healthcare profile to adjudge the pharmaceutical market in

terms of demand, expenditure and possible future direction.

trend in pharmaceutical market

Documents