“The only thing that is constant is Change” – Heraclitus. Same holds true for the Pharmaceutical industry, as we predict how the Pharma market would behave in the year 2017. Though it is imperative to say that these changes will be slower and it will take a longer time for them to reach full implementation.
It is justifiable to say that no innovation works for every company in every industry. So, understanding the basics of the change may help you pave the way for proper strategizing.
Following trends have been governing in the year 2016 and they establish the precise course for your 2017 strategies.
1.No, patients are not ready to pay ‘anything’ for prescribed drugs!
As the general perception goes, people do not suffice their health for money. This was proved wrong by patients, physicians and politicians when in August 2015 the CEO of Turing Pharmaceuticals increased the price of Daraprim, a drug effective in treating toxoplasmosis or acute malaria, by 5000%. And the company was under constant pressure from everyone to drop their prices. There has been a constant impetus on dropping the cost of the drugs over the years. Several other examples can be cited regarding the same.
Gone are the days when people used to rush to their nearby hospitals in case they go down with mild fever. People are more knowledgeable and tech-savvy these days. Everyone is becoming smarter by the day with the advent of internet. One can find thousands of articles, health blogs and free of cost consultancies on the internet. People are more informed; they are very much aware about their sickness and treatment alternatives. Ultimately, it is in the hands of a patient to choose among the best available options. Doctors have mostly lost their power to influence this choice and this is leading to a changed behavior of pharma companies. The big Pharma giants have to think about re-strategizing and repositioning.
3.Everything is getting personalized, so is the medicine
Yes, it is very much a thing now. Statistically it has been confirmed that 94% of pharma companies are putting efforts and are funding researches in order to find ‘specialized therapies’. A growing contingent of researchers, some healthcare clinicians, and a growing number of patients are calling for a more personalized approach pointed as much at preventing disease as it is at tailoring treatment once it’s there. Advancing genomic technologies, data science procedures, investments, and many public and private sector programs have made it possible for modern medicine to get very close to realizing the goal of personalized medicine. It’s an approach that focuses upon the ways in which your disease risks are totally unique and different, exactly how your characteristics, emotions are all different from those of others.
The industry’s impetus has shifted to specialty drugs, as they focus upon complex diseases that obviously have a high value in the market and face low competition as well. Ultimately, we have to keep it in our minds that like every other industry, pharmaceutical industry is also profit oriented. Due to the increased demand in the specialty drugs, it is forecasted that a 50% rise in the spending will be observed by 2018.
5.Digitalization is the new sexy
Heard of the terms like – mHealth sensors, Precision medicine, 3D printing, Artificial intelligence and Nanotechnology? They are very much here and are ready to shape the future of the pharma industry. Pharma companies have filed 12% more patents in 2014 than the year before and four pharmaceutical companies were in the list of top 20 World’s Most Innovative Companies created by Forbes. The ever-growing intersection of biology and technology is the key reason behind the growing influence of digital health innovations on the pharma industry.
6.Entry of Tech Giants
In the recent years, companies like Google, Apple and IBM have entered the Pharma domain. With huge investments, procurement of massive amounts of health-related data, processing by tech giants, pharma companies have their jobs cut out. Pharma companies can now gain better understanding of diseases, enhance their R&D strategies and most importantly better focus on the treatments. One such example is Google’s smart lens for monitoring the health of diabetes patients, all thanks to the technological innovation.
7.The Brexit vote casts ripples
Brexit has left long lasting impact on practically all the industries. Pharmaceutical industry is no exception. CEO of Immodulon, in a statement warned that lack of action could have long term implications on the industry’s progress, moreover it could also negate the progress achieved over the last ten years.
There’s doubt outside of the United States too. On the other side of pond, Brexit’s shadow looms long over 2017. With many regulatory questions, still pending, some experts think the industry could stall.
But it’s not all worrisome, Summerton also noted that Brexit offers an exclusive opportunity to the British pharmaceutical industry. She believes the sector needs to search for new ways to bring drugs to market—and the Brexit vote can actually forward that goal.