Advertise With UsAdvertise on our extensive network of industry websites and newsletters.
Get the PBR newsletterSign up to our free email to get all the latest PBR
news.The world's emerging markets account for a fast-rising share of global pharma sales, and this rate of growth is predicted to catapult by 2020. Despite the surge in pharma markets, the emerging economies are fraught with several inherent risks for the global drug majors to invest in, quoted PharmaTimes.
Subscribe to our email newsletter
According to Murray Aitkin, senior vice president, Healthcare Insight at IMS Health, the global pharmaceutical market is predicted to grow 5%-6% this year to a value of over $735 billion. China, Brazil, Mexico, South Korea, Turkey, India and Russia – the seven markets which IMS has identified as ‘pharmerging’ will grow 12%-13% this year, compared to low single-digit growth in the mature markets of the US and the five leading European nations, where growth is expected to be no more than 4%-5%, and just 1%-2% for Japan.
In 2007, the pharmerging countries’s share of the global market totaled 17%, up from 13% in 2001. Mr Aitkin has said that by 2020 it is expected to reach 21%-22%, and these seven markets will be contributing over 50% to global market growth, at $70-$90 billion.
But Mr Aitkin cautions the major pharma multinationals about the risks involved in the pharmerging markets like the differences between these nations and traditional western markets. He also warns the industry about the intricacies involved in intellectual property rights – compulsory licensing, patent recognition, and other healthcare issues like cost and quality.
He also advised the companies to invest in healthcare media, conduct pharmacoeconomics studies and adapt their business models to the local market needs along with cultivating locals in their business development programs.