sales trends and growth challenges in the evolving pharmaceutical...
TRANSCRIPT
Drug development has always been a risky proposition,
so the experience of bringing a drug to market after mul-
tiple phases of clinical trials and meeting stringent safety
and efficacy standards is a relief for any developer.
But with rapid transformation in the global marketing
environment threatening to limit pharma companies’
success, beating the odds of drug development is only
half the battle.
Worldwide sales growth
The prescription drug market is projected to grow
by 5.1% per year to reach $1,017bn by the end of
the decade.
High-income vs. developing countriesWhile increased global connectedness has shifted
some industries’ focus toward developing markets,
pharma is moving more slowly in this direction.
High-income countries continue to dominate both
production and consumption.
02
More than $1 trillion of worldwide prescription drug sales expected by 2020.
03
• High-income countries comprised only 17% of the world’s
population, but constituted 79% of drug expenditures.
• The U.S. accounted for 34% of global pharmaceutical
expenditures, followed by Europe and Japan.
• 56% of medicines introduced in the previous four years
were sold in the U.S.
IN 2010
04
Despite the pharma industry’s slower progress, emerging and developing markets offer a great opportunity.Demand in these markets is expected to increase, and
at a faster pace than elsewhere. Aggregate annual
spending may reach $499bn by 2020.
Globalization is regarded as one of the most important—
if not the most important—drivers of economic activity
around the world. Pharmaceutical industry health can
also be attributed to an unwavering demand for
healthcare: People will continue to get sick, and an
increase in lifestyle-related diseases and continued
aging of the global population creates a growing need
for new medicines.
However, the pharma industry is far from immune to financial pressures. • Governments around the world have less funding
available to pay for medications and are actively
seeking to reduce their costs, hence the intense
scrutiny on drug pricing.
• There have even been lawsuits against companies
accused of trying to keep drug prices artificially high,
forcing companies to withdraw products from
certain markets.
• The ability to pay for new medicines varies from
country to country, undermining the global
connectedness of pharma markets.
05
The SolutionThese financial and political burdens make it critical for pharma and biotech companies to communicate the value of their medications.
They’ll need to:• Work smarter to reduce the costs of drug
development and marketing wherever possible
• Use real-world data to demonstrate the safety and cost-saving potential of their products
• Ensure operational consistency across markets with more centralized control
• Adopt technologies to facilitate the generation and collection of data according to an ever-changing regulatory landscape
Rather than trying to do everything internally, collaborating with a globalization services provider with specialized expertise of regional market shifts will be key.
LEARN MORE AT LIONBRIDGE LIFE SCIENCES
LEARN MORE AT L IFESCIENCES.L IONBRIDGE.COM
© 2017 Lionbridge. All Rights Reserved.
Sources:Evaluate Pharma. Worldwide total prescription drug sales 2006-20; 2014. http://info.evaluategroup.com/rs/evaluatepharmaltd/images/EP240614.pdf
Ghemawat P, Altman SA. DHL Global Connectedness Index 2012. Data sources include the World Health Organization (WHO), Organisation for
Economic Co-Operation and Development (OECD), IMS Health, UN Comtrade, Euromonitor, iSuppli, and ResearchinChina. http://www.dhl.com/en/about_us/logistics_insights/studies_research/global_connectedness_index/global_connectedness_index.html#.VFff5MkpXuM
Ibid. Map generated based on data from WHO, OECD, IMS, and estimates by Ghemawat and Altman.
Ibid. Calculated based on data from WHO, OECD, IMS, and World Development Indicators.
IMS Institute for Healthcare Informatics. The Global Use of Medicines: Outlook through 2016. Parsippany, NJ: IMS Institute for Healthcare Informatics; 2012. https://www.imshealth.com/files/web/IMSH%20Institute/Reports/The%20Global%20Use%20of%20Medicines%20Outlook%20Through%202016/Medicines_Outlook_Through_2016_Report.pdf
European Federation of Pharmaceutical Industries and Associations. The Pharmaceutical Industry in Figures: Key Data 2012. Brussels, Belgium:
European Federation of Pharmaceutical Industries and Associations; 2012. http://www.efpia.eu/uploads/Modules/Documents/efpia_figures_2012_ final-20120622-003-en-v1.pdf
PwC. From vision to decision: pharma 2020; 2012. Available at: http://www.pwc.com/gx/en/pharma-life-sciences/pharma2020/assets/pwc- pharma-success-strategies.pdf