Top 3 Challenges in the Pharmaceutical Industry
What do your peers think about Pharmaceutical Industry?
Industry professionals remark the obstacles on pharmaceutical development and production and the new challenges imposed by those enterprises that promote the use of generic drugs. Additionally, they admit important difficulties to take part of a market that it’s ruled by a small group of recognized multinational companies. Lastly, there is an issue related with price differentiation strategies that can be consequence of a very competitive international market and currency divergences.
Pharmaceutical Top 3 peer challenges
Drug Development and Production
Scientific, technical, and regulatory challenges related to drug development create issues in the pharmaceutical industry. Blockbuster drugs face competition from less expensive generic equivalents as their patents expire in the long run.
Market Introduction and Competition
Competition with bigger well-known companies and the difficulty of bringing new drugs and products to market. ‘Big pharma’ companies hold significant market share.
Pharmaceutical marketplace is continuously changing and we can see these changes affecting pricing differentiation and discounts strategies. Being present in international markets with different currency rates and governmental limitations can additionally increase the obstacles and shrink the revenues.
- More stringent technical and regulatory issues
- Growth of Over-the-counter (OTC) drug market
- Improve and reduce testing and approvals
Research-based trends and short-term forecast
According to Reuters, pricing will dictate the agenda of the pharmaceutical industry in 2016, mostly because of the presidential elections in the US and some political propositions that try to regulate the costs and revenues (Reuters).
These political changes in public health will also have a positive impact in a specific pharmaceutical market. Due to the recent rise of awareness of infectious diseases and the global needs to raise immunization ratios, global vaccines market will stand out with a 7.1% average growth per year. World Health Organization expects this global market to reach USD100bn by 2025 (Daiwa Capital Markets).
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