The global Pharmaceutical industry is one of the most dynamic, turbulent and complex economic space in the modern times. A typical Pharmaceutical company invests millions in research & development, therefore sound knowledge of the global trends of the factors affecting the market capitalization are important in strategizing business advancement:
1) Research & Development:
According to Pharmaceutical Manufacturers Association, the leading expenditure in this industry is on research & development. After the trials, the company gets one year’s patent protection before the competitors are allowed the rights to manufacture and market equivalent drugs at half the price.
2) The patient-first business model:
This model is increasingly being preferred over the traditional approach of sales regulation through health practitioners. With digital media providing health awareness in a click, more emphasis is being given on individual patient collaboration and effective communication. Pharmaceutical data analytics are becoming more relevant to regulate commercial success.
3) Introduction of biosimilars:
The rapid Introduction of biosimilars has made the market tenfold times competitive. Drugs for debilitating disorders are made available at much cheaper pricing than the pricing of the patent companies.
4) Precision medicines:
Pharmaceutical companies are investing massively on precision medicines, as trial and error procedural costs are eliminated and target-based concise treatment strategy is ensured, tailor-made to the patient’s requirements.
5) The digitalization of the health care sector:
Starting from electronic records to genome mapping, digitalization has phenomenally revolutionized the industry. Mobile health sensors and wearable devices, offers end to end monitoring of a patient’s progress.
6) Government Regulations & Marketing:
Over the decade, the demand for heavily marketed lifestyle drugs has increased consumer acceptance. There is massive demand for drugs that are claimed to enhance preventive approach and improve the quality of life. Therefore, effective marketing and sales strategy to target lifestyle drugs are on the go.
Incorporation and careful consideration of all these factors are imperative for the strategic pricing and market cap monitoring of the pharmaceutical industry.