The pharmaceutical industry is a global one, but emerging markets are increasingly playing a major role. In fact, by 2025, emerging markets are expected to account for nearly half of the global pharmaceutical market.
There are a number of factors driving this growth. One is the rising affluence of populations in emerging markets. As people become more affluent, they have more disposable income to spend on healthcare, including prescription drugs.
Another factor is the aging population in many emerging markets. As people live longer, they are more likely to develop chronic diseases, such as diabetes and heart disease. These diseases require long-term treatment with prescription drugs, which creates a large and growing demand for pharmaceuticals.
The supply of pharmaceuticals in emerging markets is also growing. Many multinational pharmaceutical companies are investing in these markets, as they see the potential for significant growth. In addition, there are a number of emerging domestic pharmaceutical companies that are developing new drugs and products.
As a result of these factors, the pharmaceutical market in emerging markets is becoming increasingly competitive. Companies that want to succeed in these markets need to have a strong understanding of the local needs and regulations. They also need to be able to offer high-quality products at a competitive price.
Is it Worth Doing Business in Emerging Markets in the Pharma Sector?
There are a number of challenges to doing business in emerging markets in the pharma sector. These include:
Regulatory hurdles: The regulatory environment in emerging markets can be complex and time-consuming to navigate.
Intellectual property protection: Intellectual property protection is often weak in emerging markets, which can make it difficult to protect valuable drug patents.
Corruption: Corruption can be a problem in some emerging markets, which can make it difficult to do business.
However, there are also a number of opportunities in the pharma sector in emerging markets, including:
Growing demand: The demand for pharmaceuticals is growing rapidly in emerging markets.
Low-cost manufacturing: Manufacturing costs are often lower in emerging markets, which can give companies a competitive advantage.
New markets: Emerging markets offer new markets for pharmaceutical companies to explore.
Overall, the pharma sector in emerging markets is a complex and challenging one, but it also offers significant opportunities for growth. Companies that are able to overcome the challenges and capitalize on the opportunities will be well-positioned to succeed in these markets.