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What are seven major trends reshaping the pharmaceutical marketplace?

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Question added by Ghada Eweda , Medical sales hospital representative , Pfizer pharmaceutical Plc.
Date Posted: 2016/03/18
Ghada Eweda
by Ghada Eweda , Medical sales hospital representative , Pfizer pharmaceutical Plc.

Seven major trends reshaping the pharmaceutical marketplace

The pharmaceutical marketplace is changing dramatically, with huge implications for the industry as a whole. We have identified 

seven major socio-economic trends. 

1.The burden of chronic disease is 

soaring. The prevalence of chronic 

diseases like diabetes is growing 

everywhere. As greater longevity forces 

many countries to lift the retirement age, 

more people will still be working at the 

point at which these diseases start. The 

social and economic value of treatments 

for chronic diseases will rise accordingly, 

but Pharma will have to reduce its 

prices and rely on volume sales of such 

products because many countries will 

otherwise be unable to afford them.

2.Healthcare policy-makers and 

payers are increasingly mandating 

or influencing what doctors can 

prescribe. As treatment protocols 

replace individual prescribing decisions, 

Pharma’s target audience is also 

becoming more consolidated and more 

powerful, with profound implications 

for its sales and marketing model. 

3.The industry will have to work much 

harder for its dollars, collaborate with 

healthcare payers and providers, and 

improve patient compliance. 

4.Pay-for-performance is on the rise.

A growing number of healthcare payers 

are measuring the pharmacoeconomic 

performance of different medicines. 

Widespread adoption of electronic 

medical records will give them the 

outcomes data they need to determine 

best medical practice, discontinue 

products that are more expensive or less 

effective than comparable therapies and 

pay for treatments based on the outcomes 

they deliver. So Pharma will have to prove 

that its medicines really work, provide 

value for money and are better than 

alternative forms of intervention.

4.The boundaries between different 

forms of healthcare are blurring. The 

primary-care sector is expanding as 

clinical advances render previously fatal 

diseases chronic. The self-medication 

sector is also increasing as more 

prescription products are switched to 

over-the-counter status. The needs 

of patients are changing accordingly. 

Where treatment is migrating from the 

doctor to ancillary care or self-care, 

patients will require more comprehensive 

information. Where treatment is 

migrating from the hospital to the 

primary-care sector, patients will require 

new services such as home delivery.

5.The markets of the developing world, 

where demand for medicines is likely 

to grow most rapidly over the next 13 

years, are highly varied. Developing 

countries have very different clinical and 

economic characteristics, healthcare 

systems and attitudes towards the 

protection of intellectual property. Any 

company that wants to serve these 

markets successfully will therefore have 

to devise strategies that are tailored to 

their individual needs.

6.Many governments are beginning 

to focus on prevention rather than 

treatment, although they are not yet 

investing very much in pre-emptive 

measures. This change of emphasis 

will enable Pharma to enter the realm 

of health management. But if it is to do 

so, it will have to rebuild its image, since 

healthcare professionals and patients 

will not trust the industry to provide 

such services unless they are sure it has 

their best interests at heart. 

7.The regulators are becoming more 

risk-averse. The leading national and 

multinational agencies have become 

much more cautious about approving 

truly innovative medicines, in the wake 

of problems with medicines like Vioxx.

Deleted user
by Deleted user

Thanks for invitation. Agree with ACHMAD SURJANI.

Muhammad Moeen Bhatti
by Muhammad Moeen Bhatti , Cluster Incharge , Premier DLC - A project of Beaconhouse Group

Unfortunately irrelevant question but agreed with your answer...

Sidrah Nadeem
by Sidrah Nadeem , Global Marketing Manager , Hill & Knowlton

Agree with the answer by Mr.Achmad!

Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

Agree with ACHMAD SURJANI General Manager Operational

ACHMAD SURJANI
by ACHMAD SURJANI , General Manager Operations , Sinar Jaya Group Ltd

The Pharmaceutical industry's long successful strategy of placing big bets on a few molecules, promoting them heavily and turning them into blockbusters worked well for many years, but its R&D productivity has now plummeted and the environment’s changing. PwC believes that seven major trends are reshaping the marketplace:

  • Instances of chronic disease are increasing, placing even greater pressure on already stretched healthcare budgets
  • Healthcare policy-makers and payers are increasingly mandating what doctors can prescribe
  • A growing number of healthcare payers are measuring the pharmacoeconomic performance of different medicines. A widespread use of electronic medical records will give them the data they need to insist on outcomes-based pricing
  • Boundaries between different forms of healthcare are blurring, as clinical advances render previously fatal diseases chronic and the self-medication sector expands
  • Demand for medicines is growing more rapidly in the emerging economies than the industrialized economies
  • Governments are beginning to focus on prevention rather than treatment, although they have not yet invested very much in pre-emptive measures; and
  • Regulators are becoming more cautious about approving truly innovative medicines.

These trends will compound the challenges Pharma already faces, but they’ll also provide some major opportunities.

Rami Abbas
by Rami Abbas , Sales Manager , Al Houda Contracting and Real Estate Development

Unfortunately I don't have experience in pharmaceuticals field but your answer Ms.Ghada covered the subject very well thank you. 

abdulrhman frikha
by abdulrhman frikha , MEDICAL CLAIMS SPECILAIST AND PROVIDER RELATIONSHIP , GLOBEMED SAUDI

sorry i have no idea about that ..............................

Mushreq Abdulmajeed
by Mushreq Abdulmajeed , Senior Project Supervisor , Lagoon Spring Company

I am sorry the question out of my specialist !!!

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