The global pharmaceutical market is likely to witness significant growth due to continuous R&D activities. Growth of geriatric population, rising government expenditure for healthcare, and improving economic conditions, especially in developing countries can propel market growth. High prevalence of lifestyle and chronic diseases is expected to boost market growth in the coming years. In addition, changing lifestyle and rapid socio-demographic shift due to urbanization in developed and emerging countries are likely to fuel the demand. Advancements in technology and introduction of novel drugs are key driving factors in the market.
Technological advancements in manufacturing is expected to play an important role in reducing the overall production cost. Increasing implementation of automation and development of artificial intelligence (AI) based solutions are also expected to bode well for the market. Introduction of AI-based tools applicable to all stages of drug discovery and development can have a positive impact on market growth. AI based solutions help in the arrangement of pre-clinical and clinical trials, and analysis of biomedical and clinical data. AI-based software can also be used to conduct chemical synthesis to get the desired compound.
Digitization in healthcare, such as electronic health records (EHRs), can be useful in mapping patient’s genome and pathogen genome that affects patient’s health. Increasing trend of personalized medicine to analyze an individual’s health is expected to create opportunities for the market in the coming years. Development of personalized or precision medicines has changed the way for the healthcare specialists as well as pharmaceutical companies to treat diseases. For instance, medical professionals are now able to distinguish individuals with similar symptoms into smaller groups by using genetic sequencing. Moreover, digitization plays a crucial role in mapping patient’s information. Wearable medical devices provide real-time information of patient that can be used for monitoring patient’s health. In addition, advancements, such as digital medicine, is gaining huge traction in the market. Digital medicine or digital pills are embedded with an ingestible sensor in order to record information when the medicine is taken. For instance, Otsuka Pharmaceutical Co., Ltd. (Otsuka) and Proteus Digital Health (Proteus) extended their collaboration agreement in order to support the development and commercialization of a portfolio of medicines, including the ABILIFY MYCITE. It is an aripiprazole tablet embedded with an Ingestible Event Marker (IEM) sensor intended to track drug ingestion. It is an antipsychotic drug indicated for the treatment of adults with manic and mixed episodes, schizophrenia, bipolar I disorder as monotherapy, and major depressive disorder.
However, high investment and strict regulation are the key challenges in the market. Pharmaceutical medications are subject to strict laws and regulatory framework that deal with safety, testing, effectiveness, patenting, and marketing. This can have a negative impact on market growth in coming years. High cost involved in R&D of novel drugs is expected to act as a barrier for small companies.
Numerous pharmaceutical companies produce both generic and branded drugs. Increasing development of generics, which are copies of patent-expired drugs, are likely to create growth opportunities for new entrants in the coming years. Governments, particularly in developing countries, are encouraging companies to increase their production in order to make lower-price treatments widely available.
Pharmaceutical companies develop drugs to diagnose, cure, treat, and prevent ailments. Musculoskeletal disorders drugs hold a prominent share in the market. They are used to treat diseases, such as carpal tunnel syndrome, rheumatoid arthritis, osteoarthritis, osteoporosis, rotator cuff tear, tendonitis, and muscular dystrophy. Drugs used to treat diabetes and thyroid diseases are expected to show notable growth in the coming years. Drugs used in the treatment of cancers are likely to witness an increase in demand in the years to come due to growing cases of cancers.
North America is one of the promising regional markets due to presence of well-organized healthcare infrastructure, growing health awareness, better accessibility to high-value drugs, and rising government expenditure on healthcare. Asia Pacific is expected to expand with rapid pace in the coming years owing to increasing government efforts on improvement of healthcare infrastructure. Moreover, presence of a large population base and improving economic conditions is likely to increase the ability of the consumers to purchase high-value drugs. Countries, such as India and China, are expected to contribute significantly to regional market growth. China is considered one of the key producers of pharmaceutical products. Increasing production of generic medicine in India is also expected to support market growth in the coming years.
Some of the prominent players operating in the pharmaceutical market are Novartis International AG; Pfizer Inc.; Sanofi S.A.; F. Hoffmann-La Roche AG; and Gilead Sciences, Inc.
Research Support Specialist, USA