The main driver in the selection of an emerging
market would be the active role the respective Government plays in providing
healthcare to its citizens.
CHENNAI,
JUNE 26:
Emerging
markets are critical for the sustained growth of pharma industries, as they are
likely to account for 30 per cent of the global pharmaceutical spend by the end
of next year, according to a new report.
The
report, ‘Emerging Market and Sustainable Growth Report 2015’, on the Indian
pharmaceutical sector, revealed that innovation and technology will be
important differentiators as pharma organisations try to drive growth in
developing countries. The emerging markets cover nations in Africa, the Middle
East, South-East Asia, Brazil, Russia, India and China.
The
report is the outcome of a workshop hosted by Cambridge Consultants, a global
product development and technology consultancy firm. The participants were
pharmaceutical companies like Novartis Vaccines India, Cipla, and Dr. Reddy’s
Laboratories, among others.
Major
ailments
Ambuj
Jain, General Manager (India), Cambridge Consultants, said in the report, “In
India, the prevalence of diabetes and cancer is projected to rise by 25-40 per
cent over the next 10 years. This shift gives pharma companies an opportunity
to market their global products in emerging markets.”
The main
driver in the selection of an emerging market for the pharma companies would be
the active role the respective Government plays in providing healthcare to its
citizens, since it facilitates direct dealing with the government.
The
report states that key barriers like accessibility and affordability should be
addressed. Improvements in affordability will be driven by rising disposable
income and increasing insurance coverage.
Growth in
accessibility will come from increase in Government spending, medical
infrastructure, and new business models for rural areas.
The
report says that lack of good diagnostic centres and higher cost for diagnosis
leads to under-treatment. Collaborating with diagnostics companies to develop
minimally invasive diagnostics instruments will be beneficial in the long-run.
But the
idea that healthcare innovation in emerging markets has to focus only on cost
reduction was dismissed by experts. The example of smartphones and how their
adoption has penetrated into the society was highlighted. This suggests that
‘value’, at the right price point, is more relevant in driving adoption of new
technologies.
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