Pharmaceutical and Life Science Consulting firms have been busy working with pharmaceutical companies, helping them to understand and prepare for the changes occurring in the industry today, as well as preparing them for upcoming predicted changes. Shifts in the global pharmaceutical market have led to a necessity for pharmaceutical firms to make changes in how they do business. Here is a look at some of these changes and how they effect well established and emerging firms.
5 Global Trend Changes In The Pharmaceutical Industry
Over the last decade, changes in the U.S pharmaceutical industry have had a slow but steady effect on the global industry as whole. Here is a look at 5 current and future trends in the pharmaceutical industry that need to be addressed.
1. Less approvals for new drugs over the last decade- For a number of years, new drugs were entering the market on nearly a daily basis. Unfortunately, many negative effects of some of these drugs were not recognized until after they reached the market, which resulted in pharmaceuticals that could do more harm than good. This led to the regulatory establishment of longer clinical trials, which in turn meant that were less applications for new drug approvals and less overall approvals for new drugs in recent years. In addition pharmaceutical manufacturers spent more money on the trials.
2. Pressure for Companies to Produce more Cost Effective Drugs- In addition to pharmaceutical companies having to invest more money into longer clinical trials, there was also pressure for companies to produce more cost effective drugs. Pharmaceutical companies had to start looking for ways to cut the production and marketing costs of drugs they produced.
3. Generic Pharmaceutical Use is on the Rise. Due to the shaky economy, physicians discovered their patients no longer could afford the name brand medications they had been prescribing. A move was made to prescribe more affordable generic drugs rather than traditional name brands. This trend is expected to continue for the foreseeable future. This will force pharmaceutical companies to streamline production, packaging, and marketing of drugs in order to maintain a reasonable profit.
4. Growth Shifting to Emerging Markets. During past years much of the growth of the pharmaceutical market was centered on already well developed markets around the world. However, trends now show the pharmaceutical industry experiences the largest growth in emerging markets, while already developed markets continue to struggle with maintaining market shares.
5. Health System Reforms Predicted to Spur Fundamental Changes in the Pharmaceutical Market. It may be difficult to accurately predict the extent to which health system reforms may change the overall pharmaceutical market, however it is acknowledge that these reforms will likely be strongly significant to regional areas. Many smaller regions continuously work to find methods of providing adequate and affordable care for the ill and suffering, including those who have life threatening ailments; such as heart disease, cancer, or diabetes. Not only is increased pressure now applied to pharmaceutical companies to produce affordable drugs to help treat these conditions, but additional pressure also exists to ensure these medications are equally effective.
The traditional model that pharmaceutical companies have operated under is becoming irrelevant. It is quickly being pushed aside as the market begins to gravitate towards more global and economically fiscal trends. This includes a great need for more affordable medications, which presents a significant challenge to companies with a lot of inertial resistance to continuous cost modifications.
Hence, there has been no other time where such a need for pharmaceutical consultancy has been prevalent. Cost structuring and marketing efficaciousness are now the trends in life sciences.
Dr. Trydzenskaya has 5+ years of Pharma and Life Sciences experience: Clinical, Medical Affairs, Medical Information, Medical Communication, Publication, Program Management. She has received multiple Young Investigator Awards for the highest ranked clinical research in Immunology. She has led multidisciplinary clinical studies in the following areas: Transplant, Nephrology, Oncology, Immunology, Hematopoietic Stem Cell Transplantation.